Top 8 High-Yield Liquid Staking Protocols To Look in 2024

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Discover the top 8 liquid staking protocols to maximize your return. Dive into their features and yield offerings.

Liquid staking is the top DeFi trend to look out for in 2024. As the crypto landscape evolves, the demand for more flexible staking solutions has surged. Traditional staking often requires locking up assets, which can be a deterrent for many investors who want to maintain liquidity. Enter liquid staking—a revolutionary approach that combines the best of both worlds: the rewards of staking and the liquidity of tradable assets.

In this article, we’ll explore the top 8 liquid staking protocols that are making waves in 2023. These platforms offer unique solutions to common staking challenges, ensuring you can earn rewards while maintaining access to their assets.

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Top 8 High-Yield Liquid Staking Protocols in 2024

  1. Lido – The Best For Beginners
  2. Frax Ether – ETH-pegged Stablecoin on Frax Finance
  3. Stader – The Multi-chain Liquid Staking Solution
  4. Swell – The Fast-Growing ETH Liquid Staking
  5. StakeWise – Simplifying Ethereum 2.0 Staking
  6. Ankr – Not Just Liquid Staking
  7. Benqi – Liquid Staking and Lending Protocol on Avalanche
  8. GLIF – The Pioneer Liquid Staking on Filecoin Blockchain

What is Liquid Staking?

Before diving into the top protocols, let’s briefly discuss what liquid staking is and why it’s gaining traction. Liquid staking allows users to stake their crypto assets in a decentralized protocol. In return, they receive a tokenized representation of their staked assets. These tokens can then be traded, used as collateral in DeFi platforms, or even utilized in yield farming strategies.

The primary advantage of liquid staking is that it provides liquidity to assets that would otherwise be locked up. This means users can earn staking rewards while still having the flexibility to participate in other DeFi activities.

Top 8 High-Reward Liquid Staking Protocols

1. Lido – The Best For Beginners

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Yield offered:

  • Ethereum: STETH – 3.3%
  • Polygon: STMATIC – 4.1%
  • Solana: STSOL – 7.3%

When talking about liquid staking, Lido is highly recommended. It is one of the leading liquid staking platforms on the Ethereum network, and the most trending DeFi project you must know in 2024. ETH holders can stake their assets in Ethereum 2.0 while receiving stETH tokens in return, which can be used in various DeFi protocols. Besides Ethereum, you can stake your idle SOL, DOT or MATIC tokens to get yield-bearing “st-Tokens” and earn rewards.

Highlight Features:

  • stETH and other st-tokens represent staked assets on Lido and can be used in DeFi.
  • Decentralized and secure staking process.
  • Integration with major Ethereum dApps and services.

Pros:

  • Provides liquidity to stakers while they earn staking rewards.
  • Multi-chain solutions
  • stETH has broad adoption in the Ethereum DeFi ecosystem.
  • Transparent and DAO governance
  • The biggest liquid staking platform until now.

Cons:

  • Staking rewards might vary based on Ethereum 2.0’s performance.
  • Lower staking APR than other competitors.
  • Highly centralized due to the fact that Lido accounts for over 60% ETH liquid staking market.

2. Frax Ether – ETH-pegged Stablecoin on Frax Finance

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Yield offered:

  • Ethereum: srdXETH – 3.91%

Ranking second on the top list is Frax Finance and its ETH-pegged stablecoin – frxETH. Frax Ether (frxETH) is a liquid ETH staking derivative and stablecoin system within the Frax Finance ecosystem, designed to streamline the Ethereum staking process and maximize staking yield. 

It consists of three primary components: Frax Ether (frxETH), Staked Frax Ether (sfrxETH), and the Frax ETH Minter. frxETH acts as a stablecoin loosely pegged to ETH, allowing for a simplified and secure way to earn interest on ETH, while sfrxETH accrues staking yield, and the Frax ETH Minter facilitates the exchange of ETH for frxETH.

Highlight Features:

  • Fractional-Algorithmic Stablecoin: Frax Ether operates as a two-token system, using both the FRAX stablecoin and the FXS governance token.
  • Collateral-backed and Trustless: Users can mint FRAX using collateral like ETH, ensuring stability and trustworthiness.
  • Decentralized Governance: FXS token holders have the power to vote on proposals and influence the protocol’s direction.

Pros:

  • Innovative approach combining collateral and algorithmic mechanisms.
  • High transparency and security with decentralized governance.
  • Integration with the broader Ethereum DeFi ecosystem.
  • Frax Ecosystem is massive, with many use cases for DeFi users.

Cons:

  • Complexity of the fractional-algorithmic system may be challenging for newcomers.
  • Dependence on the Ethereum network’s performance and fees.

3. Stader – The Multi-chain Liquid Staking Solution

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Yield offered:

  • EthereumETHX – 5.29%

Stader is the third high-yield liquid staking protocol that we would like to recommend you use in 2024. As of October 2024, its total value locked (TVL) is around $120 million. It offers a decentralized solution for stakers to earn rewards without compromising on liquidity. By staking your assets, you receive a tokenized representation, ensuring they can still participate in the broader DeFi landscape while earning staking rewards.

It is one of the largest multichain platforms because it supports 7 blockchain networks. You can ensure that your funds are safe with Stader because it is certified by CertiK, Peckshield, and Halborn.

Highlight Features:

  • Decentralized Staking: Stader provides a trustless environment for users to stake their ETH and earn rewards.
  • Tokenized Representation: Upon staking, users receive a tokenized version of their staked ETH, ensuring liquidity and flexibility.
  • Integrated Dashboard: Stader offers an intuitive dashboard for users to track their staking performance, rewards, and other metrics.
  • Cross-Platform Compatibility: Stader seamlessly integrates with popular Ethereum wallets and DeFi platforms, enhancing the user experience.

Pros:

  • Dual benefits: staking rewards and DeFi participation.
  • Support several blockchains
  • The platform allows 40+ protocol integrations to enhance yield generation.
  • Intuitive, user-friendly interface.

Cons:

  • There is limited liquidity for Stader liquid tokens.
  • Newer platform in the DeFi landscape.
  • Stader charges high fees compared to other platforms.

4. Swell – The Fast-Growing ETH Liquid Staking

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Yield offered:

  • Ethereum: swETH – 4.06%

Next, we have Swell, a fast-growing non-custodial ETH liquid staking protocol designed to optimize yield in the DeFi ecosystem. Users can seamlessly integrate with Ethereum’s DeFi space by staking with Swell, earning rewards and maximizing returns.

Highlight Features:

  • Non-custodial ETH Liquid Staking: Users can stake their ETH and receive swETH, which can be deposited into vaults running proven yield-boosting strategies — all from within the Swell dApp
  • DAO Governance: The Swell DAO will remain solely responsible for executing the protocol functions. Through the Swell forum, the DAO will solicit feedback via proposals and, where appropriate, enable snapshot votes for decisions. These voting will be facilitated via the SWELL governance token.
  • Security First Approach: Swell prioritizes security, undergoing continuous audits and offering bug bounties on leading platforms.

Pros:

  • Swell offers no protocol staking fees, making it the lowest-cost staking option on the market.
  • Fully-vetted node operators. Staked assets can be forfeited to the network when things go wrong and node operators display harmful behavior.
  • swETH offers higher yields on integrated dApps
  • Active community governance through the DAO.

Cons:

  • Relatively new in the market, so potential for unforeseen challenges.
  • Limited to the Ethereum ecosystem.

5. StakeWise – Simplifying Ethereum 2.0 Staking

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Yield offered:

  • Ethereum: sETH2 – 3.6 %

StakeWise is a staking platform tailored for Ethereum 2.0, aiming to provide users with a seamless and efficient staking experience. By staking ETH through StakeWise, users can earn rewards without the complexities of running their own validator nodes.

Highlight Features:

  • Solo and Pool Staking: Offers both individual staking and pooled staking options to cater to different user preferences.
  • Tokenized Staking: Users receive sETH2 (staked ETH) and rETH2 (reward ETH) tokens, representing their staked assets and rewards respectively.
  • Transparent Fee Structure: Clear and competitive solo and pool staking fees.

Pros:

  • It is an open-source platform and supports pool staking
  • Tokenized approach provides liquidity for staked assets.
  • It supports liquid staking with low amounts such as 1 wei

Cons:

  • Stake Wise charges high fees compared to other platforms
  • As with all staking platforms, you should be aware of potential smart contract risks.

6. Ankr – Not Just Liquid Staking

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Yield Offered:

  • Ethereum: ANKRETH – 3.24%
  • BNB Chain: ANKRBNB – 2.08%
  • Polygon: ANKRMATIC – 3.86%
  • Avalanche: ANKRAVAX – 6.82%
  • Fantom: ANKRFTM – 4.88%
  • Polkadot: ANKRDOT – 12%

Ankr is a versatile platform that offers decentralized cloud solutions for Web3 applications, including staking services you cannot miss out in 2024. With Ankr, you can stake various cryptocurrencies, including Ethereum, Binance Smart Chain, and Polkadot, in a secure and user-friendly environment.

Highlight Features:

  • Multi-Chain Staking: Supports a wide range of blockchains for staking.
  • One-Click Nodes: Simplifies the staking process with one-click node deployment.
  • Staking Liquidity: Offers aETH, a liquid staking derivative for Ethereum.

Pros:

  • Ankr supports staking for various popular cryptocurrencies
  • It partnered with multiple blockchains to offer faster and cheaper services
  • The rewards can go as high as 13%

Cons:

  • Liquid staking is not the prioritized service of Ankr platform
  • Fees can go as high as 10%

7. Benqi – Liquid Staking and Lending Protocol on Avalanche

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Overview of Liquid Staking on Benqi. Souce

Yield offered:

  • Avalanche: sAVAX – 5.96%

Benqi is a decentralized finance protocol built on the Avalanche network that offers liquid staking solutions. By staking assets on Benqi, users can earn rewards while also receiving qTokens, which represent their staked assets and can be used in various DeFi activities.

Highlight Features:

  • Liquid Staking: Stake AVAX and receive yield-bearing token sAVAX, which can be used on Avalanche DeFi ecosystems and collateralized on Benqi lending pool.
  • Multi-Asset Support: Benqi lending market supports a variety of assets including AVAX, ETH, and BTC.
  • Integrated with Avalanche: Leverages the speed and low fees of the Avalanche network.

Pros:

  • No lock-up periods
  • Zero fees for depositing and withdrawing from liquid staking pool
  • Full control over your assets and associated accounts
  • Seamlessly stake AVAX and start earning without needing to execute cross-chain transfers to the Avalanche P-Chain
  • Gain additional utility on your interest-bearing asset to be freely utilized within Avalanche DeFi ecosystem

Cons:

  • Limited to the Avalanche ecosystem, which might be unfamiliar to some users.
  • As with all DeFi platforms, users should be aware of smart contract risks.

8. GLIF – The Pioneer Liquid Staking on Filecoin Blockchain

Yield offered:

  • Filecoin: FIL – 9.62%

The last one on our curated list of high-yield liquid staking platforms is GLIF. You might find it unpopular on social media, but it provides high rewards when staking FIL. GFIL introduces an innovative approach to staking within the Filecoin ecosystem. It’s an automated staking solution that allows users to stake their Filecoin (FIL) and in return, they receive GFIL tokens. These tokens represent the staked FIL and can be used within the Filecoin network, offering liquidity and flexibility to stakers.

Highlight Features:

  • Automated Staking: Users can easily stake their FIL and receive GFIL tokens without manual intervention.
  • Liquidity Provision: GFIL tokens can be traded, providing liquidity to stakers.
  • Integration with Filecoin: Explicitly built for the Filecoin ecosystem, ensuring seamless operations.

Pros:

  • The first liquid staking protocol on the Filecoin network, opening up staking to a broader audience.
  • GFIL is accumulating the majority of staked FIL, up to 88%.
  • Reduces the technical barriers associated with Filecoin staking.
  • Transparent reward distribution mechanism.

Cons:

  • Dependency on the Filecoin network’s performance.
  • Limited features compared to common liquid staking.
  • Filecoin DeFi ecosystem is still new and fresh with a small number of dApps

Factors to Consider When Choosing a Liquid Staking Protocol

Supported Assets

Ensure the protocol supports the assets you intend to stake. Some platforms might focus on a single blockchain, while others offer multi-chain support.

Security

The safety of your assets should be a top priority. Research the security measures implemented by the protocol, such as smart contract audits and governance mechanisms. If you are a beginner in this field, it is safer to start with a small amount of money that you can lose in top TVL (Total Value Locked) protocols, which are most likely used by many people.

Yields and Fees

Compare the potential returns across different platforms. Consider the staking rewards and any additional yields from utilizing the liquid tokens in DeFi, as well as the staking fee and redemption fee.

Community and Governance

A strong community and transparent governance can be indicators of a protocol’s long-term viability. Engaged communities often lead to continuous development and improvement.

Conclusions

Liquid staking is undeniably reshaping the DeFi landscape, offering a compelling blend of rewards and flexibility. As the crypto ecosystem continues to mature, the importance of liquid staking platforms will only grow. They present a unique opportunity for investors to maximize their returns without sacrificing liquidity. As with any investment, always conduct thorough research and consider your financial goals before diving in.

We hope this article provides valuable insights into the world of liquid staking and a good reference of protocols to watch and follow. Whether you’re a seasoned investor or a crypto newbie, understanding these protocols can be a game-changer for your investment strategy.

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Disclaimer: This article serves informational purposes only and does not constitute financial advice. Conduct your own research before making investmendecisions.