Lido's stETH excels at deep, battle-tested liquidity because of its first-mover advantage and massive $34B+ TVL. This results in superior capital efficiency for DeFi integrations, with stETH serving as the dominant collateral asset on protocols like Aave, Maker, and EigenLayer. Its deep liquidity pools on Uniswap V3 and Curve minimize slippage for large restaking deposits and withdrawals, a critical factor for institutional-scale operations.
LABS
Comparisons
Staked ETH (stETH) vs. Rocket Pool ETH (rETH) for Restaking
A technical comparison of the two dominant liquid staking tokens for restaking on EigenLayer, focusing on yield composition, centralization risk, and protocol support for CTOs and protocol architects.
Chainscore © 2026
introduction
THE ANALYSIS
Introduction: The Restaking Liquidity War
A data-driven comparison of stETH and rETH as foundational assets for restaking strategies, examining liquidity, decentralization, and yield composition.
Rocket Pool's rETH takes a different approach by prioritizing a credibly neutral and permissionless node operator network. This decentralized architecture, powered by its RPL token-incentivized security model, results in a trade-off: slightly lower liquidity (~$3B TVL) but stronger censorship resistance and alignment with Ethereum's core values. Its yield is generated natively by its decentralized validator set, avoiding reliance on a single entity's treasury management.
The key trade-off: If your priority is maximum liquidity and seamless integration with the broadest DeFi and restaking stack (EigenLayer, Kelp DAO), choose stETH. If you prioritize decentralization and credibly neutral Ethereum alignment for long-term protocol resilience, and can accept marginally higher slippage on large trades, choose rETH.
tldr-summary
stETH vs. rETH for Restaking
TL;DR: Key Differentiators at a Glance
A data-driven breakdown of the leading liquid staking tokens for EigenLayer and other restaking protocols.
01
Choose stETH for Maximum Restaking Yield
Dominant liquidity and integration: With ~$30B TVL, stETH is the default collateral on major restaking platforms like EigenLayer and Symbiotic. This leads to higher aggregate points and potential airdrop allocations. It's the primary asset for EigenLayer LST restaking pools.
$30B+
TVL (Lido)
>70%
LST Market Share
02
Choose rETH for Decentralization & Protocol Alignment
Permissionless, node-operator-first model: Rocket Pool's decentralized design (8 ETH minipools) aligns with restaking's security ethos. It's often favored by protocols prioritizing censorship resistance and is a core asset for EigenPOD operators. Lower market share can mean higher relative rewards in new incentive programs.
3,000+
Node Operators
$3B+
TVL (Rocket Pool)
04
Choose rETH for Predictable Rewards & Lower Risk
Trust-minimized rewards mechanism: rETH's value accrues directly via the Rocket Pool protocol's smoothing pool and oracle system, not via governance-set fees. This offers a more transparent yield source. It presents a lower smart contract concentration risk compared to the dominant player.
STAKED ETH (STETH) VS. ROCKET POOL ETH (RETH)
Head-to-Head Feature Matrix
Direct comparison of key metrics for restaking decisions on EigenLayer.
| Metric | Lido stETH | Rocket Pool rETH |
|---|---|---|
Native Restaking on EigenLayer | ||
Protocol-Owned Node Operators | ||
Decentralized Node Operator Set | ||
Current Total Value Locked (TVL) | $35B+ | $4B+ |
Commission/Reward Fee | 10% | 14% (Node Operator 14%, Protocol 0%) |
Liquid Staking Token Standard | rebasing (balance updates) | value-accruing (price updates) |
Insurance Backstop (RPL Collateral) | None |
|
pros-cons-a
RESTAKING LIQUIDITY TOKENS
Staked ETH (stETH) Analysis
A technical breakdown of stETH and rETH as collateral for restaking protocols like EigenLayer. Key metrics and trade-offs for protocol architects.
01
Choose stETH for Maximum Liquidity & Composability
Dominant market share: With over $30B in TVL, stETH is the most liquid and widely integrated LST. This matters for protocols requiring deep on-chain liquidity for large restaking deposits or complex DeFi strategies. It's natively supported by Aave, Compound, and MakerDAO, enabling leveraged restaking positions.
$30B+
TVL
99%+
LST Market Share
02
Choose rETH for Decentralization & Protocol Alignment
Permissionless, decentralized node operator set: Rocket Pool's 8 ETH minipool model enables a more distributed validator set compared to Lido's curated whitelist. This matters for protocols prioritizing censorship resistance and Ethereum's credibly neutral ethos. The Rocket Pool protocol manages slashing risks directly, adding a layer of security for restakers.
3,000+
Node Operators
8 ETH
Minipool Min.
03
Avoid stETH if Slashing Risk is a Primary Concern
Indirect slashing exposure: Lido's DAO-curated node operators bear slashing risk, but the stETH token itself does not automatically depeg or lose value from a slash. However, this creates counterparty and governance risk for restaking protocols, as the DAO must manage the fallout. This matters for risk-averse protocols building long-term, trust-minimized systems.
04
Avoid rETH for Ultra-Large, Single-Tx Restaking
Lower immediate liquidity: With ~$3B TVL, rETH's on-chain liquidity pools (e.g., Uniswap, Balancer) are shallower than stETH's. This matters for whales or protocols attempting to restake tens of millions in a single transaction, as they may incur higher slippage. Integration with major money markets like Aave is also less mature.
$3B
TVL
pros-cons-b
STAKED ETH (STETH) VS. ROCKET POOL ETH (RETH) FOR RESTAKING
Rocket Pool ETH (rETH) Analysis
A technical breakdown of the two leading liquid staking tokens for restaking strategies, focusing on decentralization, yield mechanics, and integration readiness.
01
Choose stETH for Maximum Restaking Yield & Liquidity
Dominant market share: With ~$35B TVL, stETH offers the deepest liquidity on DEXs and lending markets like Aave and Compound. This results in tighter spreads and lower slippage for large restaking operations. Higher base yield: As a direct representation of Lido's stake, its yield is derived from the entire validator set, often resulting in a slight APY advantage over rETH. This matters for protocols like EigenLayer and Symbiotic seeking to maximize total value secured (TVS).
$35B+
TVL
>30%
Market Share
03
Choose rETH for Decentralization & Censorship Resistance
Permissionless node operator set: Anyone with 8 ETH can run a Rocket Pool minipool, creating a more distributed and credibly neutral validator network. No governance over upgrades: The rETH contract is immutable and non-upgradable, removing a key smart contract risk vector. This matters for protocol architects building long-term, resilient systems where the risk of a centralized point of failure (like Lido's DAO) is unacceptable.
3,000+
Node Operators
Immutable
Contract
04
Choose rETH for Predictable, Protocol-Enforced Yield
Yield from two sources: rETH holders earn staking rewards plus a commission from node operators (currently 14%). This commission is enforced at the protocol level. Fair value accrual: The rETH/ETH exchange rate increases solely based on protocol rewards, making its yield mechanics more transparent and trust-minimized compared to rebasing tokens. This matters for VPs of Engineering who need deterministic, auditable reward streams for their treasury or restaking strategies.
CHOOSE YOUR PRIORITY
Decision Framework: When to Choose Which
stETH for DeFi
Verdict: The default choice for maximum liquidity and composability. Strengths:
- Deepest Liquidity: ~$10B TVL; the most integrated asset across DeFi (Aave, Compound, Uniswap, Maker).
- Battle-Tested: Largest, longest-running liquid staking token (LST) with proven security and oracle integrations.
- Composability: stETH is the primary LST accepted for restaking in EigenLayer and as collateral in major money markets. Considerations: Centralization risk lies with Lido DAO's node operator set.
rETH for DeFi
Verdict: The principled choice for decentralization-first protocols. Strengths:
- Trust-Minimized Design: No withdrawal keys controlled by a multisig; uses a decentralized oracle and node operator set.
- Growing Ecosystem: Strong integration in newer, ethos-aligned DeFi like Aave V3, Balancer, and Curve.
- Fee Structure: Protocol fee (15%) is distributed to RPL stakers, not a centralized treasury. Considerations: ~$3B TVL offers less native liquidity than stETH, which can impact large pool depths.
verdict
THE ANALYSIS
Final Verdict and Strategic Recommendation
A data-driven breakdown of the core trade-offs between stETH and rETH for restaking strategies.
Lido's stETH excels at providing deep, liquid market access and a proven track record for large-scale DeFi integration. Its massive ~$10B Total Value Locked (TVL) and near-1:1 peg stability on major DEXs like Curve and Balancer make it the de facto standard for capital efficiency. For example, protocols like Aave and Compound accept stETH as collateral, enabling complex leveraged strategies. Its permissionless node operator set, while large, introduces a degree of centralization risk that sophisticated restakers must account for in their threat models.
Rocket Pool's rETH takes a fundamentally different approach by enforcing a decentralized, permissionless node operator network through its RPL bond requirement. This results in a stronger alignment with Ethereum's credibly neutral ethos but comes with the trade-off of lower liquidity (~$3B TVL) and a slightly wider exchange rate drift against ETH on secondary markets. Its design inherently mitigates systemic risk from a single entity's failure, making it a structurally resilient choice for long-term, security-focused restaking deployments.
The key trade-off is between liquidity & integration depth versus decentralization & structural security. If your priority is maximizing capital efficiency, leveraging existing DeFi composability, and accessing the deepest liquidity pools for entry/exit, choose stETH. If you prioritize minimizing protocol-level centralization risk, supporting Ethereum's consensus-layer resilience, and are comfortable with slightly less market depth for a more credibly neutral asset, choose rETH.
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