Top 10 Liquid Staking Protocols in 2024 and How to Buy Their Tokens

Staking is a method through which cryptocurrency users can earn interest on their digital assets. This process operates under the Proof of Stake (PoS) model for validating transactions on a blockchain network. With the introduction of liquid staking protocols, staking has become more accessible and convenient for users.

This article explores the top 10 liquid staking protocols in 2024. It reviews their tokens and features and provides a guide to buying them on CoinEx.

What is Liquid Staking?

"Liquid Staking" refers to a tokenized representation of staked assets on a proof-of-stake blockchain. It is an alternative to traditional staking, allowing users to retain and utilize their tokens in decentralized finance (DeFi) applications or other Web3 protocols without locking them up.

However, liquid staking protocols come with risks. These include rug pulls, smart contract vulnerabilities, and temporary losses from yield farming activities. An additional risk is the possibility of the receiving token "de-pegging" from the base asset if arbitrage trading fails to maintain price alignment in secondary markets.

Top 10 Liquid Staking Protocols

1. EtherFi

Ether.fi is a decentralized staking platform built on Ethereum. It enables users to stake their ETH while maintaining control over their private keys. It features unique integrations, such as using NFTs for validators and integrating with EigenLayer for additional yields.

The native restacking feature enables the compounding of staking rewards, making it possible to earn more over time. This technology allows users to maximize their revenue without needing manual intervention. 

Features

One of the platform's best features is its ability to stake liquid assets. In exchange for their staked Ethereum, users are given liquid tokens, such as eETH (ether.fi staked ETH), rather than having their ETH locked up for extended periods. 

Below are a few notable features:

• Ether.fi makes staking inside the Ethereum ecosystem more accessible, efficient, and decentralized.
• Users can trade or utilize the tokens in various decentralized finance (DeFi) applications, providing greater flexibility and liquidity. 
• Users can generate revenue by staking their Ethereum, and additional income can be earned by restaking using Eigenlayer. 
• By installing nodes in various geographical areas, ether.fi can perform Operation Solo Staker, which improves Ethereum's decentralization.
• Stakeholders are the only ones with control over their private keys. Ether.fi protocol helps reduce the dangers associated with third-party node operators and programs.
• The eETH token gives users a flexible and efficient way to stake their ETH within the Ether.fi protocol while maintaining liquidity and participating in DeFi activities.

Overview of ETHFI & eETH

There are two native tokens on Ether.fi: eETH & ETHFI. 

eETH is a natively restaked liquid staking token that fuels the Ether.fi protocol. When users stake their ETH through the Ether.fi protocol, they receive an equivalent amount of eETH tokens in return. These tokens represent the staked ETH and are liquid, meaning they can be traded or used in various DeFi applications.

eETH tokens entitle holders to receive staking rewards from the underlying staked ETH. These rewards are automatically compounded within the Ether.fi protocol, maximizing the earnings potential for eETH holders over time.

The governance token that drives the ether.fi network is ETHFI. The community members have the power to govern essential components of the protocol and impact the growth strategy of weETH, which is then wrapped in a non-rebasing version of ether.fi's Liquid Restaking token eETH.

Tokenomics

• Total supply: 1 billion
• Market capitalization: $259.9 million
• Binance Launchpool: 2.00%
• Airdrop: 11.00%
• Investors & Advisors: 32.50%
• Team: 23.26%
• Protocol Guild: 1.00%
• DAO Treasury: 27.24%
• Liquidity: 3.00%

2. Renzo Protocol

Renzo Protocol is the primary interface through which users can connect with the EigenLayer ecosystem. It is a Liquid Restaking Token (LRT) manager for EigenLayer and manages the staking strategy. Since its launch in January, Renzo has become a popular and widely distributed liquid restaking protocol.

In addition to providing a more significant income than the conventional method of staking Ethereum, it also simplifies the complexity associated with Ethereum staking.

The protocol uses Actively Validated Services (AVSs) to protect applications developed on EigenLayer by utilizing Ethereum's layer1 security standards. In addition, it eliminates the requirement of storing ETH tokens for an extended period by issuing ezETH crypto.

Features

Renzo was developed as a strategy manager for EigenLayer and a liquid restaking token (LRT) to facilitate the broader adoption of restaking and EigenLayer.

The Renzo Protocol's Liquid Restaking Token (LRT) is most commonly called ezETH. Users who stake native ETH or liquid staking tokens (LSTs), such as wBETH and stETH, can obtain ezETH in exchange for their stake.

• Users who use Renzo do not have to wait for EigenLayer deposits to reopen because the cryptocurrency operates its own Beacon chain validator nodes. 
• The purpose of Renzo's ezPoints system is to provide an incentive for active engagement and contribution to the protocol's success. Participants are rewarded with points based on their participation.
• In addition, Renzo can provide cross-chain re-staking due to its partnership with Connext Network.
• It has an Auto-Compounding reward mechanism. It means users can passively capture staking and restaking rewards.

Overview of REZ

REZ is the native governance token for the protocol. Holders of REZ can vote on governance proposals within the ecosystem.

These proposals may include the whitelisting of operators and Actively Validated Services, frameworks for overall risk management, grants from the community and the Treasury, and specified amounts of concentration, collateral assets, and deposits. 

Tokenomics

• Total supply: 10 billion
• Market capitalization: $86.7 million
• Fundraising: 31.56%
• Community: 32%
• Airdrop: 7%
• Rewards 2.0: 5%
• Core Contributors: 20%
• Foundation: 12.44%
• Binance Launchpool: 2.5%
• Liquidity: 1.5%

3. Puffer Finance

Puffer Finance is a native liquid restaking protocol (nLRP) built on EigenLayer, allowing users to stake as little as one ETH and become validators.

When users stake Ether, they contribute to protecting the Ethereum network and gain access to yields and rewards. Puffer aims to enhance the performance of Ethereum Proof of Stake (PoS) validators. 

It offers a more convenient staking method than conventional staking, which requires validators to lock up a substantial amount of funds (32 ETH) and maintain the necessary technological infrastructure. 

Thanks to Puffer, individuals can become validators with as little as one ETH, improving decentralization and reducing the barrier to entry.

Features

Utilizing the powers of the EigenLayer, Puffer is revolutionizing the restaking industry by delivering several cutting-edge features that improve security, accessibility, and rewards. 

• Using Secure-Signer technology, the necessary bond was decreased from 32 ETH to a mere 1 ETH. This significant reduction allows a wider variety of participants, mainly solo stakers, to join the network, creating a more decentralized and diversified environment regarding validator participation.
• Puffer takes a permissionless approach, meaning anyone can interact with the platform without requiring approval or authorization from a centralized authority. 
• Validator tickets are a distinctive component of Puffer's process. They enable validators to make deposits and boost their revenue through sales.
• Puffer users can obtain the standard PoS staking yields and the forthcoming EigenLayer AVSs yields. They are also eligible to receive Puffer Points, a dynamic component of Puffer's ecosystem that may lead to new opportunities.
• When they stake pufETH, users can earn rewards from partnered protocols, which increases the ecosystem's total profitability and attractiveness.

Overview of pufETH

In place of the conventional Liquid Staking Tokens (LSTs), Puffer has its non-liquid staking token (nLRT) called pufETH. This nLRT employs native ETH as collateral. This innovative token provides standard proof-of-stake yields and restaking yields using EigenLayer. This not only improves economic viability but also encourages decentralization among validators.

Tokenomics

• Total supply: 492.1k
• Market capitalization: $1.71 billion

4. EigenLayer 

EigenLayer is a new protocol built on Ethereum. It developed a new concept in crypto-economic security, restaking, which utilizes ETH on the consensus layer. 

Users who stake Ethereum natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST and expand crypto economic security to more apps on the network to earn further rewards.

Features

Using EigenLayer, Ethereum stakers can contribute to protecting several services by restaking their staked ETH and opting into multiple services simultaneously, thereby offering pooled security. When Ethereum is reused to provide security across a wide range of services, the capital expenses for a staker to participate are reduced, and the trust is significantly increased.

Below are a few more of its features:

• Restaking allows stakers to restake their native Ether or Liquid Staking Tokens (LST) to increase the level of security for Actively Validated Services (AVSs), which are services that are part of the EigenLayer ecosystem.
• Operators are entities that assist in the operation of AVS software that is built on EigenLayer. They first register in EigenLayer and then allow stakers to delegate to them. Afterward, they opt to provide various services (AVSs) built on EigenLayer.
• Staking with EIGEN and restaking with ETH are two functions that complement one another within EigenLayer. 
• Objective slashing is used to ensure the safety features of these protocols.
• By allowing projects to easily access and use the network's security, restaking on EigenLayer enhances the Ethereum ecosystem's capacity for flexibility.

Overview of EIGEN

The EIGEN token is a universal intersubjective work token that anyone may use. It is the primary token of the EigenLayer ecosystem. 

When we talk about a "work token," we refer to a token that can be staked to carry out particular activities within a blockchain platform. These activities may be validation tasks or execution tasks.

Tokenomics

• Total supply: n/a
• Market capitalization: n/a 
• Community and ecosystem initiatives: 45%
• Investors: 29.5%
• Early contributors: 25.5% Three-year lockup period involving a phased release schedule.
• Airdrops: 15%
• Restakers: 5%

5. Swell Liquid Restaking 

Swell is a non-custodial staking protocol that aims to provide the world's finest liquid staking and restaking experience, simplify access to decentralized finance, and ensure the future of Ethereum and restaking services. 

Users can generate passive income through Swell by staking or restaking ETH to gain both blockchain and restaked AVS rewards. In exchange, they are given a yield-bearing liquid token (LST or LRT) to store or participate in the broader DeFi ecosystem to generate more yield.

Features

Swell uses a transferable ERC-20 token (swETH and rswETH) to give customers a non-custodial liquid staking and restaking method. 

Here are a few of its best features:

• Swell allows you to access staking yields and DeFi chances through a single interface. Simply staking or restaking your Ethereum, you can obtain liquid swETH or rswETH that may be utilized within the larger DeFi ecosystem.
• The average annual percentage yield (APY) for ETH staking is approximately 4%, which leaves little freedom for staking providers to charge their private fees. This makes Swell one of the most cost-effective staking alternatives available on the market, as it charges a staking fee of only 10%. 
• To establish a validator node on Ethereum, you must pay 32 ETH. This restricts millions of individuals from staking independently. By lowering this barrier to entry, Swell makes it possible for anyone to earn rewards by staking on Ethereum at a fraction of the cost.
• Prior technical experience is optional. To stake independently, you need to have a reliable source of electricity, a reliable internet connection, and a fee to ensure that your validator setup will not fail. Remember that if the setup fails, you might have to pay penalties.
• Swell eliminates the complexity and streamlines the staking process, allowing users to begin the procedure in seconds using an uncluttered and straightforward interface.

Overview of SWELL

SWELL is the native governance token of the Swell Network. One of the network's most important defense systems is the staking of SWELL tokens, which is at the heart of its security features. 

Participants in the network can stake their Swell tokens to contribute to the general security and stability of the platform. The token still hasn’t been launched, as it’s still under development. 

Tokenomics

• Total supply: n/a
• Market capitalization: n/a

6. Rocket Pool

Rocket Pool is a liquid staking solution for Ethereum that allows people with less than 32 ETH to self-fund new validators and earn rewards as a group. This protocol functions on the Ethereum blockchain.

Rocket Pool engages permissionless validator operators to handle the technical and operational difficulty of operating an Ethereum validator. 

Features

You will obtain Rocket Pool's liquid staking token, rETH, when you deposit ETH into Rocket Pool. This token reflects your proportional claim to ETH in Rocket Pool. If you are a validator who operates on Rocket Pool, you are entitled to rewards equal to the amount of money you have staked. 

More features are mentioned below:

• The platform lets you stake as little as 0.01 ETH, significantly lowering Rocket Pool's entrance barrier.
• As soon as you purchase the ERC-20 token rETH, Rocket Pool will allow you to begin staking Ethereum. rETH's value is directly related to ETH; however, it grows over time as participants receive staking rewards.
• When you transfer your ETH for staking, Rocket Pool automatically swaps your ETH for rETH. This means you will pay 0.05% of the total ETH you spend on the transaction.
• The ability to use their locked funds is one of the ways that Rocket Pool gives its users access to liquidity. You will receive rETH in return for the ETH you staked through the platform's liquid staking mechanism. It will then allow you to use rETH in the same manner as any other ERC-20 token.
• The protocol distributes RPL tokens as an additional perk for node operators. To maximize their earnings, operators are encouraged to stake 150% of their stake value in RPL.

Overview of RPL

The Rocket Pool Token (RPL) is the protocol's governance token, giving the community a vote in its development and operation. 

Node operators must additionally use RPL as collateral to ensure their node's security. To safeguard their investment, node operators must stake 10% of their ETH worth in RPL whenever they build a Minipool Validator. By selling off a node's RPL collateral, the network can recover any Ethereum lost due to poor performance. 

Tokenomics

• Total supply: 20.52 million
• Market capitalization: $386.9 million
• Node operators: 70%
• Oracle DAO: 15%
• Rocket DAO: 15%

7. Inception Liquid Restaking Protocol

InceptionLRT v2 is an omnichain restaking protocol that operates on EigenLayer. It allows users to restake in either an isolated or native way. Investors no longer have to choose between native or isolated restaking. Thanks to a recent merger between InceptionLRT and Genesis, investors can now manage both token types on the same protocol. 

Isolated Liquid Restaking Tokens (iLRTs) ensure that each staked asset is represented by a dedicated iLRT. This way, users receive a unique iLRT for each asset they restake, making it easy to track individual assets. This increases transparency and reduces the risks associated with the transactions. 

Features

InceptionLRT was developed to enhance the EigenLayer architecture by resolving a significant problem, the protocol's liquidity locking. 

Here are a few of its best features:

• With the help of the native restaking solution, InceptionLRT can select the most qualified node operators in the industry equipped with DVT technology. Both iLRTs and native LRTs can be freely traded and utilized in different DeFi protocols while preserving their separation from the underlying LSTs and ETH.
• It supports the 12 LSTs accepted by EigenLayer and the native ETH.
• The isolated architecture minimizes potential conflicts of interest and promotes operational transparency.
• It maintains EigenLayer's low-risk profile, eliminating the need to attract yield farmers directly into the ecosystem and increasing the risk. Yield farmers can continue DeFi composability and yield farming via the Inception Protocol.

Overview of ING

Soon, InceptionLRT will launch its native token, ING. Although discussions are still ongoing on its exact structure, the token is expected to fulfill two primary purposes:

• You can choose the top EigenLayer node operators and increase your returns on restaked assets with the Protocol Governance Token, which is a protocol that allows delegating voting for protocol governance.
• Incentivizing protocol expansion via liquidity mining, gauges, referrals, and airdrops.

Tokenomics

• Total supply: n/a
• Market capitalization: n/a

8. StakeWise

StakeWise is a platform that operates within decentralized finance (DeFi) and provides a liquid staking solution for Ethereum (ETH). It allows users to stake their Ethereum and, in exchange, receive a liquid staked-ETH derivative. This derivative may be used in various ways inside the DeFi ecosystem.

It makes staking easy. Users only need to get osETH and start staking in seconds. Users can earn staking rewards every second by holding osETH.

Features

StakeWise is an infrastructure that provides solutions for liquid staking on Ethereum. Regarding Ethereum staking, the platform offers an alternative to well-established protocols like Lido and Rocket Pool.

Here are a few of its best features:

• StakeWise has a proven track record of operating a resilient infrastructure and testing its system with over 200,000 ETH within various tenets. Additionally, the platform offers competitive fees in the industry.
• Users must actively reinvest rewards to compound their gains.
• StakeWise provides a safe, transparent, and easy-to-use solution that can help you maximize your return and liquidity.
• Compared to directly staked ETH, the staked-ETH derivative that StakeWise provides can be exchanged, leveraged in other DeFi protocols, or utilized for various investment methods. This provides a more considerable degree of flexibility.
• osETH is a token that can be used for liquid staking and can grant its holders rewards in the form of ETH. Using it in DeFi allows for the trading of staked ETH and the farming of additional rewards. 

Overview of SWISE

StakeWise is controlled by the StakeWise Decentralized Autonomous Organization (DAO), which employs the SWISE governance token to vote and incentivize the protocol's adoption. 

SWISE holders can have a say on the protocol parameters (such as fees, criteria for placement in the activation queue, choice of node operators, Treasury disbursements, and so on) by frequent voting based on the StakeWise Improvement Proposals (SWIPs).

Tokenomics

• Total supply: 444.54 million
• Market capitalization: $12.59 million
• Community: 51.00%
• Investors: 25.15% 
• Team: 21.70%
• Future fundraise: 2.15%

9. Marinade Finance

The Marinade Finance protocol is a liquid staking solution that allows users to stake Solana ($SOL) tokens without locking them up.

The Marinade protocol employs an automated staking strategy to delegate staked SOL tokens to a pool of over one hundred stable and high-performing Solana validators. This strategy eliminates staking risks while simultaneously ensuring the highest potential payouts.

Features

Marinade is a project led by the community and based on the Decentralized Autonomous Organization (DAO). It is dedicated to open-source development and transparent governance. Its users administer the protocol via the Marinade Decentralized Autonomous Organization (DAO).

Here are a few of its notable features:

• Using the Marinade Native feature, you can stake your SOL and earn the same rewards as you would if you were using mSOL. Nevertheless, you cannot utilize your SOL in DeFi apps because it is not liquid.
• The Directed Stake feature allows users to assign their stake to particular validators. This will benefit users who want to directly stake to high-performing validators or those who wish to support their preferred validators.
• MNDE token is useful for governance and motivating and rewarding active community participants.

Overview of MNDE

MNDE is the native token used to participate in the DAO's governance. Users who stake their MNDE tokens can participate in voting pools or proposals. 

When you participate in DAO governance with MNDE, you must lock the tokens on the governance platform Marinade provides.

Locked MNDE goes through an unlocking period of thirty days. During this time, holders are unable to cast votes. On the other hand, those who have locked MNDE can post proposals on the chain and execute them once they are approved. 

Tokenomics

• Total supply: 1 billion
• Market capitalization: $37 million
• DAO treasury: 74.22% (distributed)
• Initial contributors: 1.68% (allocated)
• DAO treasury: 18.28% (distributed)
• Initial contributors: 5.83% (allocated)

10. Pendle 

Pendle Finance is a mechanism for yield tokenization. It lets users speculate on and hedge future yields, providing a new and distinctive approach to yield-based investment.

Yield-generating tokens are divided into two categories: ownership tokens and yield tokens, which are used in the operation of Pendle Finance. 

Yield Tokens claim the future yield of the underlying assets, whereas ownership tokens represent the assets on the other side of the transaction. Transactions involving these Yield Tokens can occur on the Pendle Automated Market Maker (AMM).

Features

Using the Ethereum blockchain, Pendle functions as a permissionless yield trading mechanism.  

Here are some of the best features of Pendle Finance:

• Thanks to the product suite on Pendle, DeFi users have access to revolutionary new ways to trade and leverage yield. Traders have new opportunities due to the protocol's implementation of standardized yield tokens.
• The Pendle Earn product provides users with a user interface that is more user-friendly for beginners.
• When users deposit assets, Pendle mints Principal Tokens (PT), representing the underlying asset, and Yield Tokens (YT), the asset's estimated future yield. This strategy gives customers more freedom to manage their assets and use yield-generation strategies.

Overview of PENDLE

Pendle's native token, PENDLE, serves as the foundation of the yield trading system. Users who contribute liquidity to the protocol can receive PENDLE rewards and a portion of the trading fees. 

Users can use the smart contract to lock up PENDLE for up to two years. Vote-escrowed PENDLE (vePENDLE), which carries voting and economic power, is given to holders. Holders of vePENDLE can vote on protocol decisions, which allows them to govern the platform. At the same time, holders of vePENDLE are eligible to get rewards equal to three percent of the total yield received by YouTube on the platform.

In addition, the rewards and PENDLE rewards gained from liquidity provision can be increased by up to 250% when vePENDLE is held. This innovative design encourages decentralization and rewards the most devoted members of the Pendle community.

Tokenomics

• Total supply: 258.44 million
• Market capitalization: $691.6 million
• Circulating: 61.1%
• Rewards: 10%
• Team: 5.7%
• Ecosystem: 19.2%

How to Buy These Tokens on CoinEx

CoinEx is a global cryptocurrency exchange trusted by 6+ million users worldwide and has 100% reserve. Users can now trade quickly and seamlessly with its 1200+ supported tokens, including the mentioned meme coins. 

To purchase any token on CoinEx, follow the steps below. 

1. Sign up for an account: Create a CoinEx account first. 
2. Log in to your account. Now, fund it using deposit methods or cryptocurrencies. With funds in your account, you can quickly complete deals.
3. Go to the Trading Page for the Token: Once your account is funded, proceed to the specialized token's trading page on CoinEx. Use the search box to find your preferred token. 
4. Choose a Trading Pair: Select the desired trading pair that matches another cryptocurrency. For instance, you may choose to trade PENDLE/USDT.
5. Specify the Purchase Amount: Determine the quantity of the tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
6. Execute the Trade: Execute the trade with the specified amount. Confirm the details, and if you are satisfied, submit the order. 

Conclusion

In conclusion, liquid staking protocols are an effective DeFi technique for enhancing capital efficiency. Because this industry sector is continuously expanding, the technology carries significant risks.

Lastly, remember that this is not financial advice. This article is just an overview of the tokens of the best liquid staking protocols for 2024. So, do your research before investing in such coins. 

To read more informative blogs like this, head to our blog section and learn more about trending cryptocurrencies.

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