Top Liquid Staking & Restaking Protocols In 2025

Liquid Staking is a form of staking where an equivalent of a staked token remains available for normal use. That is it makes staked tokens available, unlike the usual staking where the tokens are locked out of use until they are unstaked. Liquid Staking is a staking strategy for crypto assets with a focus on capital efficiency. It employs smart contract technology and economic systems to maintain custody of staked assets, connect to the native staking system, and offer improved staking rewards to users while an equivalent of the staked tokens is still available to the staker. Put simply, liquid staking lets you stay liquid even after staking your assets.

After staking tokens through liquid staking users receive a Liquid Staking Token (LST) equivalent to the value of the tokens they staked. LSTs are also known as liquid staking derivatives, they are smart contract tokens that represent liquid-staked assets. They can be redeemed for an equivalent value at will. LSTs are unique to the liquid staking service provider.

Liquid Restaking is an advanced utility of Liquid Staked tokens. It leverages Liquid staking to improve the security of Actively validated services (AVs). To better understand this, liquid staked tokens (LSTs) as defined earlier, are a representation of tokens staked on POS networks through liquid staking protocols. They are therefore a tokenized security that can be utilized in securing other protocols. This can be used in several ways. Liquid staking protocols undertake the task of utilizing LSTs this way. Eigenlayer pioneered the idea of Liquid Restaking. According to the project, restaking works via a set of smart contracts that guides the management of assets staked under a validator’s node and the crypto-economic security that restaking protocols offer.

In liquid restaking, LST holders deposit their assets on Liquid restaking protocols and receive Liquid Restaking Tokens (LRTs). Like LSTs, LRTs can also used like normal tokens, holders can trade, lend them on (supported) lending platforms, or spend them in P2P transactions. Liquid restaking protocols further expand the scope of liquid-staked tokens, diversifying them as a security entity without locking them out of the general liquidity like normal staking.

Traditional staking services, liquid staking, and liquid restaking in this order, represent development trends in crypto staking. Each other is inspired by the other, they share the similarity of being ways through which tokens are held in custody and utilized for special purposes. However, they also differ significantly. Here, we explore the key differences between Staking, Liquid staking, and Liquid Restaking

Several DeFi protocols offer liquid staking services for crypto assets. From this growing list, we have selected some of the best protocols where you can liquid-stake your assets. This includes;

Lido is one of the biggest liquid staking protocols on the Ethereum network. It is supported across several EVM layer-1 and layer-2 networks. At the time of writing, Lido reports over $25 Billion in liquid-staked Ethereum, it also reports an excess of $2 Billion in staking payouts to users. Lido offers up to 2.8% APY to stakers. Users who deposit Eth to the protocol receive stETH, the protocol’s liquid staking derivative. Lido staked Ether is the biggest LST by market size according to data from Coingecko. stETH is supported on several DeFi platforms and can be used in yield-farming programs or traded on exchanges. stETH is also supported on several liquid restaking protocols.

According to Lido, over 600 validators use it protocol to run validator nodes. It boasts an over 97% node performance, surpassing the peak network performance. Lido protocol is governed by the Lido community. Using LDO, it governance token, community members can vote on improvement proposals to decide the direction of the project.

Marinade Finance is the first Liquid Staking platform on the Solana Network. It is a ‘staking optimization platform’. According to Marinade Finance, it operates a protocol that routes staked assets through the available validator pool to select the best-performing validators at any given time, thereby maximizing staking yield for users. Marinade Finance offers native staking and liquid staking services for staking SOL. Investors who stake their Solana tokens via the Marinade Finance liquid staking smart contract receive mSOL (Marinated Solana) equivalent to the value of Solana staked on the platform. mSOL can be swapped with SOL and other paired assets on supported exchanges. mSOL is also supported by several liquidity protocols and lending platforms on the network. Marinade Finance offers a staking APR of over 9.3%. Over $1.4 Billion worth of SOL is staked via the Marinade Finance protocol by over 140,000 users. 

The platform also offers staking delegation, which enables Solana stakers to redelegate their staked tokens via the Marinade dAPP to any of Marinade’s validators to start receiving rewards according to the platform’s specifications. The protocol is governed by the Marinade DAO using, MNDE – the protocol’s native token.

Lombard is a multi-chain Liquid staking solution for Bitcoin and Bitcoin holders. It is built on the Babylon protocol and advances its technology to create real yield-earning opportunities for Bitcoin holders. Babylon is available in over 5 blockchain networks including Ethereum and Ethereum layer-2 networks. Users can enjoy up to 5% APY in yield by staking their BTC on the platform. After depositing their BTC on the protocol, users receive LBTC, the platform’s liquid-staking derivative. LBTC can be used on lending platforms, traded on crypto exchanges, or spent in P2P transactions. LBT is supported by over 55 DeFi platforms

According to data from the platform, TVL on Lombard protocol is over $640 Million at the time of writing, this consists primarily of LBTC. Over 20,000 BTC are staked on the platform by about 80,000 reported users.

Solv Protocol is a reserve system for Bitcoin with expanded yield. It offers a basket of tools that are focused on improving the yield opportunities for Bitcoin holders. According to data from the platform, over $2.5 Billion worth of Bitcoin is staked through the Solv protocol by over 30,000 users. Via a synergy of smart contract technology and crypto-economics, Solv protocol offers SolvBTC – an advanced form of wrapped Bitcoin with technological improvement that enables interoperability and promotes real yield for Bitcoin holders. SolvBTC is a decentralized multichain representation of Bitcoin held in Solv Protocol’s BTC reserve, it is a universal Bitcoin for DeFi users. SolvBTC’s multichain support stretches across layer-1 and layer-2 networks, including Ethereum, BNB Chain, Avalanche, Arbitrum, Base, BOB, Mantle, and Merlin networks.

Users who stake Bitcoin through Solv Protocol’s liquid staking platform, receive SolvBTC.LST – the liquid staking derivative of the Solv Protocol. SolvBTC.LST can be restaked on restaking protocols like Eigenlayer, used in DeFi lending pools, traded on exchanges, or spent in P2P transactions.

Kelp is a multichain liquid restaking protocol with support for top Ethereum LSTs including stETH, rsETH, and ETHx. Kelp is available on over 10 Blockchain networks and offers up to 20% APR on restaked LSTs. At the time of writing, over $1.4 worth of ETH is locked on the platform. Kelp protocol is governed by its community through the Kelp DAO.

Jito is a liquid staking protocol on the Solana network. It operates the JitoSol (Jito Staked Solana), the platform’s Liquid Staking derivate, and allows stakers to reuse their staked assets. Stakers receive JitoSol, an equivalent representation of the asset staked to the pool. The Staked Solana coins are committed to the network’s security system while the JitoSOL tokens can be used freely, just like non-staked tokens. JitoSol can be traded against other crypto assets on decentralized exchanges and is supported by Solana network liquidity protocols and money markets.

According to the platform, it is augmented MEV (Maximal Extractable Value). Liquid staked Solana on Jito are staked to the MEV validator, this enables the protocol to earn rewards via MEV and redistribute to stakers, leading to an overall increase in staking rewards. Jito stakes to over 155 validators and is governed by the Jito DAO consisting of JTO token holders. At the time of writing, the Staking APR is over 7% and over 15 Million SOL are staked on the platform, according to available data.

Over $6 Billion worth of ETH is staked on Etherfi; the DeFi protocol is one of Ethereum’s biggest liquid staking and restaking protocols by TVL. On EtherFi’s liquid staking platform, ETH holders can deposit their assets and receive eETH, the protocol’s liquid staking derivative. eETH can be used on supported DeFi platforms like normal tokens or restaked on Etherfi for even more passive income. Etherfi offers up to 20% APY. It also supports other LSTs like stETH on its liquid restaking platform. EtherFi’s restaking protocol is built on EigenLayer. The platform also offers additional financial services like a crypto credit card.

Despite liquid staking being a new concept, billions of dollars worth of crypto assets have already been staked in liquid staking protocol. Investors are growing an interest in liquid staking and liquid restaking, here’s why you should also consider staking on liquid staking protocols;

Capital Efficiency For Stakers

Assets staked through normal staking portals are locked up, and stakers are limited to the rewards offered by the network or the DeFi protocol. For native staking, stakers’ income is also determined by the performance of the validator they are staked to. For the rest of the market, staked funds are a lost liquidity opportunity. Regular staking is a poorly capital-efficient activity. Liquid staking attempts to fix this issue. Imagine earning improved yield on native staking portals and simultaneously using your staked assets to farm liquidity yield on DeFi protocols? Liquid staking makes this possible. With liquid staking derivatives, earning opportunities through staking are significantly expanded.

Increased Flexibility

Liquid staking enables users with more leverage. Your liquid-staked assets are available to you, just like your regular assets. While they are not exactly the same, these assets can be re-used according to your investment strategy. They can also be transferred to peers who can redeem them for the staked asset at will.

Improved Liquidity For Crypto Staking

Assets staked via liquid staking protocols are available for use on DeFi protocols and for regular p2p transactions. Apart from decentralized finance protocols, several centralized exchanges also support liquid staking derivatives. Staked tokens can be traded on these platforms. Through liquid staking, billions of dollars worth of cryptocurrency are available to investors, this amount would have been locked away on POS networks and DeFi protocol if they had been staked through the normal staking procedure.

While liquid staking offers several advantages, it also has a few challenges that investors should look out for beforehand. Here are some of the risks associated with liquid staking;

Increased Complexity

While regular staking exercise is an advanced blockchain and smart contract transaction, liquid staking is even more complex. Liquid staking is similar to regular DeFi transactions, however, it involves extra procedures that could be confusing to stakers. Staking, unstaking, and management of liquid staking derivatives require more experience than the usual staking. It is therefore important to learn the procedures and use a test network if available to master the procedures before performing them using real assets.

Technological Risks

Liquid staking protocols expose investors to vulnerabilities that can be exploited by foul players. Like DeFi platforms, liquid staking platforms require users to sign transactions that allow custody of their assets, the staking interface can also be attacked in a security mishap. Any of these could lead to significant losses to stakers and the staking protocol as well. While there are no assured precautionary measures, investors are advised to only stake their assets on trusted staking protocols and ensure to invoke permissions after using a liquid staking protocol. Staking and transaction fees could also quickly add up.

Risks Associated With Fluctuation In The Value Of LSTs

Liquid staking tokens (LSTs) are subject to different economic practices which affect their values. Noticeably, the price of LSTs are different from the price of the underlying asset (like ETH, SOL, and BTC). This value also fluctuates in response to the general market and factors associated with the protocol. Like other volatile crypto assets, liquid-staked assets are also exposed to additional risks due to rapid changes in price and the relative price difference compared to non-staked assets and assets staked through the usual staking procedure.

As a crypto investor, Liquid Staking offers an ample opportunity to boost your passive income while contributing to decentralization on native blockchain networks. Even for Bitcoin holders, Bitcoin liquid staking offers this advantage as well. Not only do stakers have an opportunity to use their staked token in other ways; several liquid staking protocols have developed systems that boost the regular staking rewards by shuffling through the most efficient validators. Both concepts (liquid staking and liquid restaking) are part of an ongoing to improve the capital efficiency of staking.

In the future, we could see even more interesting applications and developments in this area. Having said this, it is important to understand the basics of both concepts and how to utilize them. In this article, we discussed some promising liquid staking protocols, however, there could be other good ones that couldn’t make the list. Ensure to perform due research before using any liquid staking protocol.