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Decoding Liquid Staking: Top Protocols to Know in 2025
Beginner
2025-08-07 | 15m
Liquid staking has emerged as a dominant trend in 2025, with over $66.86 billion locked across various protocols and Liquid Staking Tokens (LSTs) boasting a combined market capitalization of $86.4 billion. In just the past week, these platforms have generated $39.36 million in fees and $2.86 million in revenue, highlighting their integral role in the expanding DeFi ecosystem. As Proof-of-Stake (PoS) networks such as Ethereum, Solana, and Polygon continue to grow, liquid staking allows users to earn rewards without tying up their capital. Instead, they receive receipt tokens like stETH, mSOL, or rETH, which can be utilized across DeFi strategies including lending, trading, and yield farming.
A significant boost to this trend came in August 2025, when the U.S. SEC issued groundbreaking guidance clarifying that certain liquid staking activities and their associated receipt tokens do not qualify as securities offerings. This regulatory clarity is widely viewed as a major victory for DeFi and institutional adoption, with industry leaders expecting it to unlock new products, expand investor participation, and create secondary markets for LSTs. With clearer compliance frameworks now in place, both institutional and retail platforms are poised to integrate liquid staking more deeply into their offerings, driving innovation, liquidity, and mainstream accessibility in the digital asset space.
In this guide, we highlight seven leading liquid staking protocols of 2025, evaluated based on their Total Value Locked (TVL), innovation, and integration within the DeFi landscape.
What Is Liquid Staking and How Does It Work?
Liquid staking is a modern approach to earning rewards from Proof-of-Stake (PoS) blockchains without surrendering control of your cryptocurrency. Rather than locking up assets for weeks or months, liquid staking issues a Liquid Staking Token (LST)—a tradable, yield-bearing derivative such as stETH, rETH, or mSOL—that may be used throughout the DeFi ecosystem.
When you stake crypto like ETH or SOL via a liquid staking protocol, your assets are delegated to validators, and in return, you receive an LST. These tokens represent your staked assets and automatically accumulate staking rewards. You can lend them, swap them, or deposit them in yield farms, opening up new opportunities while still earning staking income. Whether held to accrue yield or used in DeFi applications like Aave, Uniswap, or Curve for lending, trading, or liquidity provision, these tokens keep your staking rewards flowing.
How Is Liquid Staking Different from Native Staking?
Unlike traditional staking, which often requires locking assets for days or even months, liquid staking maintains asset accessibility through liquid staking tokens (LSTs). There’s no need to operate a validator node or meet high minimum requirements such as 32 ETH; most protocols have low or no entry barriers. Crucially, while traditional staking restricts you from using staked assets elsewhere, liquid staking lets you earn rewards while simultaneously utilizing your tokens in DeFi applications for lending, trading, or liquidity provision.
Why Liquid Staking Matters in 2025
Liquid staking bridges the gap between staking rewards and DeFi liquidity, enabling users to stake small amounts, earn yields, and trade derivative tokens like stETH, mSOL, or rETH across lending platforms, decentralized exchanges (DEXs), and yield farms—all at the same time. This composability makes liquid staking a powerful tool in today’s fast-moving DeFi landscape.
Notably, the SEC’s 2025 regulatory guidance has bolstered market confidence by confirming that certain liquid staking activities and their receipt tokens are not securities. This has cleared the way for institutional adoption, new DeFi services, and mainstream integration. Liquid staking unlocks trapped liquidity by keeping staked tokens usable in DeFi, enables composable earnings through both staking rewards and DeFi yields, and reduces barriers by eliminating the need for validator nodes or high minimum stakes.
The Top Liquid Staking Protocols in 2025
With over $66 billion locked across platforms, these leading liquid staking protocols are redefining how users earn passive income while staying active in DeFi.
Lido (LDO) – Ethereum & Multi-Chain Leader
Lido stands as the largest and most trusted liquid staking protocol in the crypto ecosystem, securing over $32.3 billion in Total Value Locked (TVL) across Ethereum, Solana, and Polygon. Users stake ETH, POL, or SOL and receive liquid staking tokens such as stETH, stMATIC, or stSOL, which automatically accrue staking rewards and integrate with over 100 DeFi platforms. Since its 2020 launch, Lido has distributed over $3.5 billion in staking rewards, with Ethereum staking alone offering a competitive 2.7% APR.
Lido distinguishes itself through its non-custodial design, a global validator network of over 800 node operators, and seamless DeFi integrations with apps like Aave, Curve, Uniswap, and Balancer. Governance is managed by the Lido DAO, which ensures transparent decision-making through public on-chain votes. Despite ongoing discussions about decentralization, Lido remains a leader in liquid staking, offering top-tier security, deep liquidity, and active use cases for restaking and leveraged staking within Ethereum’s growing DeFi ecosystem.
Jito (JTO) – Solana’s MEV-Boosted Staking Engine
Jito is the leading liquid staking protocol on the Solana blockchain, with over 15.1 million SOL staked—equivalent to approximately $2.6 billion in TVL as of mid-2025. When users stake SOL through Jito, they receive JitoSOL, a liquid staking token that earns yield while remaining usable across Solana’s DeFi ecosystem. JitoSOL is widely integrated into platforms like Jupiter, Meteora, and MarginFi, making it a preferred collateral and trading asset for Solana users.
Jito’s uniqueness lies in its integration of MEV (Maximal Extractable Value) optimization, which captures additional value from transaction ordering to boost staking rewards beyond those of typical Solana validators. This advanced feature gives Jito stakers an edge in yield generation. However, its reliance on MEV strategies introduces smart contract complexity and associated risks, requiring robust audits and constant monitoring to ensure platform security. Despite this, Jito remains a core player in Solana’s DeFi infrastructure, balancing innovation with capital efficiency.
Rocket Pool (RPL) – Decentralized ETH Staking
Rocket Pool is Ethereum’s most decentralized liquid staking protocol, allowing users to stake as little as 0.01 ETH and earn rewards through its liquid staking token rETH. With over 666,000 ETH staked and nearly 4,000 node operators across 150+ regions, Rocket Pool enables trust-minimized staking via “minipools”—validators that require only 8 ETH from users (or 4 ETH in some cases), making staking more accessible and decentralized. The protocol currently offers around 2.39% APR for liquid staking and up to 3.34% APR for node operators, plus additional RPL incentives.
Rocket Pool stands out for its community-governed infrastructure, non-custodial design, and seamless DeFi integrations with platforms like Uniswap, Curve, 1inch, and Base App. Unlike centralized alternatives, it allows anyone to launch a validator without the standard 32 ETH requirement. While its fee structure is slightly higher than Lido’s, Rocket Pool compensates with greater transparency, geographical validator diversity, and user autonomy—reinforcing its position as a protocol built on Ethereum’s decentralization principles.
Jupiter Staked SOL (JUP) – SOL Liquid Staking by Jupiter
Jupiter Staked SOL is a liquid staking product developed by the Jupiter validator team, one of Solana’s most recognized infrastructure providers. With approximately $736 million in Total Value Locked (TVL), it offers a competitive 6%–8% APY and allows users to earn staking rewards while retaining the flexibility to use their staked SOL (JUPSOL) across various Solana DeFi platforms. The token is designed for seamless integration with Jupiter’s broader product suite, including swapping, lending, and perpetuals, making it an accessible entry point for users already active in Solana’s DeFi ecosystem.
Though smaller in scale than Jito, Jupiter Staked SOL benefits from Jupiter’s reputation for fast execution, deep liquidity, and product-focused development. Its emphasis is on simplicity and ecosystem utility rather than MEV extraction. While it lacks Jito’s advanced yield strategies, JUPSOL provides a reliable, low-friction staking option for users prioritizing ease of use and strong DeFi compatibility within the growing Solana Superapp environment.
StakeWise (SWISE) – Yield - Maximizer for ETH Stakers
StakeWise is a liquid staking protocol built on Ethereum that focuses on maximizing yield through its innovative dual-token system. Its primary token, osETH, is a rebasing asset that accrues staking rewards in real time, providing users with continuous earnings without the need for manual restaking. The platform offers a decentralized network of Vaults, allowing users to stake with curated node operators and benefit from auto-compounding, low fees, and slashing protection, all while maintaining full control of their capital. StakeWise also supports liquid solo staking, enabling home validators to issue liquid tokens and earn delegation rewards without locking collateral.
While StakeWise has a smaller TVL compared to Lido and Rocket Pool, it distinguishes itself through a transparent fee model, customizable staking terms, and a strong focus on capital efficiency and user choice. The platform is non-custodial and audited by top firms like Sigma Prime and Halborn, ensuring security and trust. With its unique marketplace model and robust DeFi integrations, StakeWise is a compelling option for ETH holders seeking tailored, high-performance staking without the complexity of validator setup.
Frax Ether (FXS) – Hybrid Stablecoin-Backed Staking
Frax Ether is the liquid staking solution within the Frax Finance ecosystem, designed to combine staking rewards with stablecoin infrastructure. Its core product, sfrxETH, represents staked ETH and automatically earns rewards over time, making it ideal for users seeking both passive income and deep DeFi integration. What sets Frax apart is its hybrid design: sfrxETH is closely linked to Frax’s stablecoin ecosystem, including frxUSD—a fully backed digital dollar powered by institutional-grade assets like tokenized U.S. Treasuries. This synergy offers unique utility and capital efficiency across Frax-native protocols such as FraxLend, FraxNet, and Fraxtal.
Though a relatively new entrant in Ethereum’s liquid staking space, Frax Ether has gained traction due to competitive yields, seamless integration into the Frax suite of DeFi tools, and strong backing from a community focused on stability and scalability. However, its Total Value Locked (TVL) remains smaller compared to industry leaders like Lido and Rocket Pool. For users already active in Frax’s DeFi ecosystem, or those seeking a yield-generating token that bridges staking with stablecoin-backed finance, sfrxETH offers a compelling option with strong composability and long-term potential.
Is Liquid Staking Safe?
Before engaging in liquid staking through any protocol, consider several key factors. Counterparty and governance risk are important: decentralized protocols like Lido and Rocket Pool offer stronger governance checks, while centralized or hybrid services may carry custody risks. Smart contract safety should be evaluated through external audits, bounty programs, and open-source transparency. Fee dynamics matter too—lower nominal fees do not always translate to higher net yield, so consider staking rewards after fees. Liquidity and volatility are additional considerations: protocols with high TVL and trading volume, such as Lido or Jito, typically offer smoother secondary market trading, while lower TVL tokens may trade at a discount or experience slippage. Finally, slashing risk exists when validators face downtime or double-signing; decentralized staking mitigates this through operator diversity, and some protocols offer insurance or buffer fees.
Conclusion
In 2025, liquid staking solidifies its role as a cornerstone of the DeFi landscape. Lido continues to lead across multiple chains, while Jito dominates Solana thanks to its MEV-powered rewards. Rocket Pool advances decentralization through accessible node operations, and other players like Jupiter, Marinade, StakeWise, and Frax offer distinct advantages in yield optimization, DeFi integration, and governance structures.
The SEC’s recent guidance on liquid staking tokens has introduced regulatory clarity, paving the way for greater institutional involvement and new financial products. However, users should approach liquid staking with caution, as protocol risks, smart contract vulnerabilities, and market volatility persist. Choosing the right platform depends on your chain preference, liquidity needs, and risk tolerance. Liquid staking offers powerful tools, but informed participation remains essential.
Reference:
Investopedia. (2025, August 6). Liquid staking tokens aren't securities, SEC says. What that means for crypto investors.
https://www.investopedia.com/liquid-staking-tokens-are-not-securities-sec-says-what-that-means-for-crypto-investors-11785409
Chainlink. (2024, May 15). What is liquid staking? Chainlink Education Hub.
https://chain.link/education-hub/liquid-staking
Lido. (n.d.). Lido liquid staking.
https://lido.fi
Jito Foundation. (n.d.). Solana liquid stake pool: Non-custodial liquid staking.
https://www.jito.network
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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