Ethereum staking: yield comparison
📋 Index
A yield only means something next to the price: 8% a year on an asset that has lost half its value is not a gain.
Impermanent loss affects liquidity pools: when the prices of the two deposited coins move apart, you can get back less than if you had simply held them.
- CBETH : ether staked with Coinbase, in token form.
- Base : an Ethereum layer-2 network launched by Coinbase, with very low fees.
- Deposit : a single token deposited, CBETH: the protocol lends or invests it, with no impermanent loss.
- SFRXETH : ether in liquid staking: it earns the staking yield and stays tradable.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Deposit : a single token deposited, SFRXETH: the protocol lends or invests it, with no impermanent loss.
- WSTETH : ether staked with Lido: it earns the staking yield and stays tradable.
- Arbitrum : an Ethereum layer-2 network with lower fees: your funds must be moved there before depositing.
- Deposit : a single token deposited, WSTETH: the protocol lends or invests it, with no impermanent loss.
- WEETH : ether restaked with ether.fi: a higher yield, with extra risks.
- Arbitrum : an Ethereum layer-2 network with lower fees: your funds must be moved there before depositing.
- Deposit : a single token deposited, WEETH: the protocol lends or invests it, with no impermanent loss.
- CBETH : ether staked with Coinbase, in token form.
- Base : an Ethereum layer-2 network launched by Coinbase, with very low fees.
- Deposit : a single token deposited, CBETH: the protocol lends or invests it, with no impermanent loss.
- WETH : "wrapped" ether (1 WETH = 1 ETH), the form most apps require.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Deposit : a single token deposited, WETH: the protocol lends or invests it, with no impermanent loss.
- WSTETH : ether staked with Lido: it earns the staking yield and stays tradable.
- Arbitrum : an Ethereum layer-2 network with lower fees: your funds must be moved there before depositing.
- Deposit : a single token deposited, WSTETH: the protocol lends or invests it, with no impermanent loss.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Deposit : a single token deposited, ETH: the protocol lends or invests it, with no impermanent loss.
- WEETH : ether restaked with ether.fi: a higher yield, with extra risks.
- Base : an Ethereum layer-2 network launched by Coinbase, with very low fees.
- Deposit : a single token deposited, WEETH: the protocol lends or invests it, with no impermanent loss.
- WETH : "wrapped" ether (1 WETH = 1 ETH), the form most apps require.
- Arbitrum : an Ethereum layer-2 network with lower fees: your funds must be moved there before depositing.
- Pair : you deposit WETH and GFC, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
- WETH : "wrapped" ether (1 WETH = 1 ETH), the form most apps require.
- Base : an Ethereum layer-2 network launched by Coinbase, with very low fees.
- Pair : you deposit WETH and NORMIE, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
- WETH : "wrapped" ether (1 WETH = 1 ETH), the form most apps require.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Pair : you deposit WETH and USD, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
- WETH : "wrapped" ether (1 WETH = 1 ETH), the form most apps require.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Pair : you deposit ETH+ and WETH, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
- WSTETH : ether staked with Lido: it earns the staking yield and stays tradable.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Pair : you deposit 1INCH and WSTETH, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
- WEETH : ether restaked with ether.fi: a higher yield, with extra risks.
- Ethereum : the original blockchain: higher transaction fees, to budget for on the way in and out.
- Deposit : a single token deposited, WEETH: the protocol lends or invests it, with no impermanent loss.
- Base : an Ethereum layer-2 network launched by Coinbase, with very low fees.
- Pair : you deposit ETH and DPHN, in equal value, into a trading pool, and earn a share of the fees paid by people swapping one for the other.
Displayed yields vary and are not guaranteed. Investing carries a risk of capital loss. This is not investment advice.
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Navigating the reality of making your Ethereum work
Two platforms might display identical percentages. One relies on sustainable network activity. The other relies on printing new tokens. Making your Ethereum work requires looking far beyond the headline figure. Yields reveal little about the underlying safety of your capital.
Distinguishing real yield from token dilution
Where do rewards actually stem from? Yield typically originates from two distinct sources: network transaction fees or the issuance of new tokens. Real yield reflects a share of the actual economic activity on the blockchain. Conversely, rewards based on new token issuance increase the total supply of the asset. This process often devalues the holdings of long-term investors.
Does inflation impact your value? It does.
⚠️ Warning: Yields funded by the issuance of new tokens mechanically dilute existing holders, even when the displayed percentage appears attractive.
Why the highest yield often masks the greatest risk
Risk and reward remain inseparable. In the crypto ecosystem, an unusually high rate usually signals a higher probability of structural failure. This might involve experimental smart contracts or aggressive leverage. You must accept that your deposited capital can be partially or totally lost due to protocol failure, software bugs, or market volatility. No return is ever guaranteed in decentralized finance.
Is the risk worth it? Usually not.
💡 Tip: Examine the protocol’s track record and the transparency of its yield source before comparing rates, as identical numbers hide different realities.
Identifying signals of protocol stability
How do you evaluate an offer? Look at the protocol’s history and the total value secured by its code. Established protocols often offer lower rates because they have survived multiple market cycles and stress tests. Newer, unproven systems must offer higher incentives to attract liquidity from users. These incentives often vanish as soon as the protocol reaches a certain size or faces technical difficulties.
Is older always better? Generally, yes.
| Mechanism type | Locking period | Associated risk |
|---|---|---|
| Native staking | Variable | Slashing and technical bugs |
| Liquidity providing | None | Impermanent loss |
| Lending protocols | None | Counterparty and bad debt |
Understanding the mechanics of impermanent loss
When providing liquidity to a decentralized exchange, you face a specific phenomenon called impermanent loss. This occurs when the price of ETH diverges significantly from the other asset in the pair. If the price moves sharply, the value of your assets in the pool might be lower than if you had simply held them in a private wallet. This loss becomes permanent the moment you withdraw your funds from the pool.
Can you avoid this? Only by avoiding liquidity pools.
🚫 Trap: Failing to distinguish between the exposed capital and the yield received; a high rate cannot offset a massive loss in the underlying capital value.
Prudence as a strategy
Verification remains your best asset. Analyze the source of rewards and the security history of the platform before committing any ETH. The safety of your principal matters more than any temporary yield.
