Liquid staking, explained.Stake the coin, keep a receipt.
Proof-of-stake networks pay rewards to those who lock coins to secure them. Liquid staking lets you stake through a protocol and receive a token in return. That token represents your staked coins plus rewards, and you can trade or use it while the original coins stay locked.
Reviewed October 19, 2026 · figures from our live data
The short answer
A liquid staking token (LST) is a receipt for coins staked through a protocol. Examples are stETH and rETH on Ethereum and jitoSOL or mSOL on Solana.
The yield comes from the network itself: new issuance and transaction fees paid to validators, minus the protocol’s fee.
Some LSTs grow in number in your wallet (rebasing); others stay the same number but each token becomes worth more of the underlying coin.
Main risks are smart contract bugs, validator penalties (slashing), the token trading below its underlying value, and waiting time to exit.
liquid staking tokens in our data today
issuers
stated yield range across 85 with a rate
How liquid staking works
The mechanics are similar across networks, even if the details differ.
- 1
You deposit, the protocol stakes
You send ETH, SOL or another coin to the protocol’s contract. It delegates the coins to a set of validators it has selected or that meet its rules.
- 2
You receive a token
In return you get an LST. It is a claim on your share of the staked pool, including rewards earned over time.
- 3
Rebasing vs value-accruing
A rebasing token such as stETH increases your balance daily. A value-accruing token such as rETH or jitoSOL keeps your balance fixed while its exchange rate to the base coin rises. Both deliver the same economic result.
- 4
Where the yield comes from
Rewards are paid by the network to validators for proposing and attesting blocks, plus fees and in some cases MEV tips. The protocol keeps a share as a fee before passing the rest on.
- 5
Getting out
You can sell the LST on an exchange or pool at the market price, or redeem it through the protocol for the base coin. Redemption can involve a queue set by the network’s unstaking rules.
- 6
Using the token in DeFi
LSTs are often used as collateral in lending markets or added to liquidity pools. This adds a second layer of yield and a second layer of risk.
What to check before holding an LST
Staking yield is not risk-free. These are the points that separate one LST from another.
- 1
Validator set
Who runs the validators, how they are chosen, and whether one operator holds a large share. Concentration matters for both the network and your token.
- 2
Slashing and penalties
If a validator misbehaves or goes offline, the network can cut its stake. Check whether the protocol has insurance, a reserve fund or a rule for how losses are shared.
- 3
Market price vs underlying
An LST can trade below the value of the coins behind it, especially in stress or when exit queues are long. Selling at that moment locks in the discount.
- 4
Smart contract and governance
The staking contracts can have bugs, and upgrades may be controlled by a multisig or DAO. Look for audits and how upgrade rights are held.
- 5
Fees
Protocols take a cut of rewards. The stated yield is usually already net of this, but check how it is quoted.
- 6
Tax treatment
Rebasing and value-accruing tokens can be treated differently for tax in some countries. This is a question for a local tax adviser.
The 12 highest stated yields
Yields as stated by the issuer or read on chain, with the date they were checked on each token page. Not a recommendation.
| Token | Issuer | Yield | Minimum |
|---|---|---|---|
| iAero Protocol — IAERO liquid staking on Base | iAero Protocol (protocol) | 17.22% (variable, DefiLlama 2026-10-19) | None |
| Hipo — HGRAM liquid staking on TON | Hipo (protocol) | 16.46% (variable, DefiLlama 2026-10-19) | None |
| ShMonad — SHMON liquid staking on Monad | ShMonad (protocol) | 13.7% (variable, DefiLlama 2026-10-19) | None |
| Phase Stake — YIELD liquid staking (0% epoch fee) on Solana | Phase Stake (protocol) | 10.29% (variable, DefiLlama 2026-10-19) | None |
| WaterNeuron — NICP liquid staking on ICP | WaterNeuron (protocol) | 7.94% (variable, DefiLlama 2026-10-19) | None |
| Ankr — ANKRFLOWEVM liquid staking on Flow | Ankr (protocol) | 7.9% (variable, DefiLlama 2026-10-19) | None |
| StackingDAO — STSTXBTC liquid staking on Stacks | StackingDAO (protocol) | 7.8% (variable, DefiLlama 2026-10-19) | None |
| StackingDAO — STSTX liquid staking on Stacks | StackingDAO (protocol) | 7.79% (variable, DefiLlama 2026-10-19) | None |
| Sceptre Liquid — SFLR liquid staking (Unstaking Cooldown: 14.5days) on Flare | Sceptre Liquid (protocol) | 7.46% (variable, DefiLlama 2026-10-19) | None |
| BeraPaw — RE7HONEY liquid staking on Berachain | BeraPaw (protocol) | 6.94% (variable, DefiLlama 2026-10-19) | None |
| Endur — STRK liquid staking (STRK) on Starknet | Endur (protocol) | 6.55% (variable, DefiLlama 2026-10-19) | None |
| BeraPaw — CSRHONEY liquid staking on Berachain | BeraPaw (protocol) | 6.2% (variable, DefiLlama 2026-10-19) | None |
Questions
Is liquid staking safe?+
It removes the need to run a validator, but it adds smart contract, validator and market risk. The underlying staking reward is set by the network, not guaranteed by the protocol.
What is the difference between stETH and rETH?+
stETH rebases: your balance grows. rETH keeps your balance fixed and rises in value against ETH. They also differ in how validators are selected and governed.
Can I lose money with liquid staking?+
Yes. The token can trade below its underlying value, validators can be slashed, contracts can fail, and the base coin’s price can fall.
How long does it take to unstake?+
Selling on the market is fast. Redeeming through the protocol depends on the network’s exit queue and the protocol’s own rules, and can take from hours to weeks.
- Liquid staking yields →
- stETH vs rETH vs cbETH →
- jitoSOL vs mSOL →
- How to compare token yields →
- DeFi lending explained →
This guide explains how these products work and is not investment advice or an offer of any security. Who may buy a product is set by its issuer; check the offering documents before investing.