Liquid staking is booming in 2025, with over $66.86 billion locked across protocols and a combined market cap of $86.4 billion for Liquid Staking Tokens (LSTs). In the past seven days alone, platforms have generated $39.36 million in fees and $2.86 million in revenue, reflecting their central role in the growing DeFi landscape. As Proof-of-Stake (PoS) networks like Ethereum, Solana, and Polygon continue to scale, liquid staking offers users the ability to earn rewards without locking up capital. Instead, they receive receipt tokens, such as stETH, mSOL, or rETH, which remain usable across DeFi strategies like lending, trading, and yield farming.
Liqiuid staking TVL | Source: DefiLlama
Adding momentum to this trend, the U.S. SEC issued landmark guidance in August 2025, clarifying that certain liquid staking activities and receipt tokens do not constitute securities offerings. This regulatory green light is seen as a major win for DeFi and institutional adoption. Industry leaders believe it will unlock new products, expand investor participation, and pave the way for secondary markets around LSTs. With clear compliance frameworks now emerging, both institutions and retail platforms are well-positioned to integrate liquid staking more deeply into their offerings, fueling innovation, liquidity, and mainstream accessibility in the digital asset ecosystem.
In this guide, we spotlight seven of the top liquid staking protocols in 2025 based on TVL, innovation, and integration across the DeFi landscape.
What Is Liquid Staking and How Does It Work?
How liquid staking works | Source: Chainlink
Liquid staking is a modern way to earn rewards from Proof-of-Stake (PoS) blockchains without giving up control of your crypto. Instead of locking up your assets for weeks or months, liquid staking issues a Liquid Staking Token (LST), a tradable, yield-bearing derivative like stETH, rETH, or mSOL, that you can use across DeFi.
When you stake crypto like ETH or SOL through a liquid staking protocol, your assets are delegated to validators, and in return, you receive an LST. These tokens represent your staked assets and accrue staking rewards automatically. You can lend them, swap them, or deposit them in yield farms, unlocking new opportunities without sacrificing your staking income.
You can hold these tokens to accumulate staking yield, or use them in DeFi apps, like Aave, Uniswap, or Curve, for lending, trading, or liquidity provision, all while continuing to earn staking rewards.
How Is Liquid Staking Different from Native Staking?
Unlike traditional staking, which often requires locking up your assets for days or even months, liquid staking keeps your assets accessible through liquid staking tokens (LSTs). There’s no need to run a validator node or meet high minimums like 32 ETH; most protocols have low or no entry barriers. More importantly, while traditional staking restricts you from using your staked assets elsewhere, liquid staking lets you earn rewards and simultaneously use your tokens in DeFi applications like lending, trading, or liquidity provision.
Why Liquid Staking Matters in 2025
Liquid staking bridges the divide between staking rewards and DeFi liquidity. It enables users to stake small amounts, earn yields, and trade derivative tokens like stETH, mSOL, or rETH across lending platforms, DEXs, and yield farms, all at the same time. This composability makes liquid staking a powerful tool in today’s fast-paced DeFi landscape.
Importantly, regulatory clarity from the SEC in 2025 has added further confidence to the market. The guidance confirmed that certain liquid staking activities and the receipt tokens they generate do not qualify as securities, unlocking the path for institutional adoption, new DeFi services, and mainstream integration.
• Unlocked liquidity: Staked tokens remain usable in DeFi.
• Composable earnings: Earn staking rewards plus DeFi yield.
• Barrier reduction: No need to run validator nodes or meet high minimums.
The Best Liquid Staking Protocols in 2025
With over $66 billion locked across platforms, these are the leading liquid staking protocols transforming how users earn passive income while staying active in DeFi.
1. Lido (LDO) – Ethereum & Multi‑Chain Leader
Lido TVL | Source: DefiLlama
Lido is 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 like stETH, stMATIC, or stSOL, which automatically accrue staking rewards and can be used across 100+ DeFi platforms. Since its launch in 2020, Lido has paid out over $3.5 billion in staking rewards, offering a competitive 2.7% APR on Ethereum staking alone.
What sets Lido apart is its blend of non-custodial design, a global validator network of over 800 node operators, and seamless DeFi integrations with apps like Aave, Curve, Uniswap, and Balancer. Its governance is managed by the Lido DAO, which enforces transparent decision-making through public on-chain votes. Despite ongoing debates around decentralization, Lido continues to lead the liquid staking space with best-in-class security, deep liquidity, and active restaking and leveraged staking use cases across Ethereum’s expanding DeFi ecosystem.
2. Jito (JTO) – Solana’s MEV‑Boosted Staking Engine
Jito TVL | Source: DefiLlama
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.
What makes Jito unique is its integration of MEV (Maximal Extractable Value) optimization, which captures additional value from transaction ordering and boosts staking rewards beyond typical Solana validators. This advanced feature gives Jito stakers an edge in yield generation. However, its reliance on MEV strategies also 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.
3. Rocket Pool (RPL) – Decentralized ETH Staking
Rocket Pool | Source: DefiLlama
Rocket Pool is Ethereum’s most decentralized liquid staking protocol, offering users the ability 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 only require 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 those running nodes, plus additional RPL incentives.
What makes Rocket Pool stand out is 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 spin up a validator without the standard 32 ETH requirement. While its fee structure is slightly higher compared to Lido, Rocket Pool compensates with greater transparency, geographical validator diversity, and user autonomy—reinforcing its position as a protocol built on Ethereum’s decentralization ethos.
4. Jupiter Staked SOL (JUP) – SOL Liquid Staking by Jupiter
Jupiter TVL | Source: DefiLlama
Jupiter Staked SOL is a liquid staking product developed by the Jupiter validator team, one of the most recognized infrastructure providers on Solana. With approximately $736 million in Total Value Locked (TVL), it offers a competitive 6%–8% APY and allows users to earn staking rewards while maintaining 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.
Although smaller in scale compared to Jito, Jupiter Staked SOL benefits from Jupiter’s reputation for fast execution, deep liquidity, and product-first development. Its focus is more on simplicity and ecosystem utility rather than MEV extraction. While it lacks the advanced yield strategies of Jito, JUPSOL provides a reliable, lower-friction staking option for users who prioritize ease of use and strong DeFi compatibility within the growing Solana Superapp environment.
5. Marinade Finance (MNDE) – Solana Trailblazer
Marinade TVL | Source: DefiLlama
Marinade Finance is one of the earliest and most trusted liquid staking protocols on Solana, with over 154,000 SOL holders and deep integration across Solana’s DeFi ecosystem. Its liquid staking token, mSOL, offers users staking rewards while remaining fully usable across top apps like Jupiter, Solend, and Orca. Marinade's standout feature is its Stake Auction Marketplace (SAM), an open validator bidding system that boosts yields for users, with annual percentage yields typically ranging between 6% and 8% depending on market conditions.
In addition to liquid staking, Marinade offers native staking and lets users stake via a non-custodial delegation system that auto-allocates SOL to high-performing validators. Security is a priority, backed by six audits since 2021, an on-chain insurance mechanism for validator downtime, and a fully decentralized governance structure via the MNDE DAO. While newer MEV-powered protocols like Jito now offer enhanced yields, Marinade remains a foundational player in the Solana staking landscape, especially for users who value validator diversity, protocol transparency, and institutional-grade staking infrastructure.
6. StakeWise (SWISE) – Yield-Maximizer for ETH Stakers
StakeWise TVL | Source: DefiLlama
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, giving users continuous earnings without needing to manually restake. 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 keeping 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 stands out for its transparent fee model, customizable staking terms, and strong emphasis 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.
7. Frax Ether (FXS) – Hybrid Stablecoin‑Backed Staking
Frax Finance TVL | Source: DefiLlama
Frax Ether is the liquid staking solution within the Frax Finance ecosystem, designed to blend staking rewards with stablecoin infrastructure. Its core product, sfrxETH, represents staked ETH and earns rewards automatically over time, making it ideal for users seeking both passive income and deep DeFi integration. What sets Frax apart is its hybrid design, where sfrxETH is closely tied 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 a unique level of utility and capital efficiency across Frax-native protocols such as FraxLend, FraxNet, and Fraxtal.
While still a relatively new entrant in Ethereum’s liquid staking space, Frax Ether has gained traction due to its 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 liquid staking through any protocol, consider:
1. Counterparty & governance risk: Decentralized protocols like Lido and Rocket Pool offer stronger governance checks, whereas centralized or hybrid services may have custody risks.
2. Smart contract safety: Look for external audits, bounty programs, and open-source transparency.
3. Fee dynamics: Lower nominal fees don’t always equate to higher net yield; consider staking rewards net of fees.
4. Liquidity & volatility: Protocols with high TVL and trading volume (like Lido or Jito) typically deliver smoother secondary market trading. Lower TVL tokens may trade at a discount or suffer slippage.
5. Slashing risk: Validators erring on downtime or double-signing risk slashing events. Decentralized staking mitigates via operator diversity; some protocols offer insurance or buffer fees.
Final Thoughts
In 2025, liquid staking is becoming 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 pushes for decentralization through node accessibility, and other players like Jupiter, Marinade, StakeWise, and Frax offer diverse advantages in yield optimization, DeFi integration, and governance structures.
The SEC’s recent guidance on liquid staking tokens has added a layer of regulatory clarity, opening the door for greater institutional involvement and new financial products. However, users should still approach liquid staking with caution; protocol risks, smart contract vulnerabilities, and market volatility remain real concerns. Choosing the right platform ultimately comes down to your chain alignment, liquidity needs, and risk profile. Liquid staking offers powerful tools, but informed participation is key.