Solo Staking vs Liquid Staking (LST)
**Solo staking** locks 32 ETH (on Ethereum) with operator duties and slashing risk. **Liquid staking** issues a receipt token—tradeable, usable in DeFi, with protocol fee and smart-contract risk.
Step by step
1. Net APR after fees
Solo: consensus rewards minus costs; LST: protocol fee + DeFi opportunity.
2. Liquidity need
LST wins if you may exit before lockup ends.
3. Counterparty
LST adds protocol risk; solo adds operational risk.
Solo vs LST
Most users use LST; solo for maximal decentralization and scale.
- Solo: Highest principal; ops burden; slashing.
- Liquid staking: Liquid; fee; smart-contract risk.
Use our calculators
Common mistakes
- Ignoring LST depeg risk in stress markets
FAQ
Is LST yield always lower?
Often slightly after protocol fee—but composable in DeFi.