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Key Insight
Ethereum staking yields: Consensus layer rewards (2-3% APY — decreases as more ETH is staked) + MEV (1-2% APY — variable). Total validator yield: 3-5% APY. Liquid staking protocols: Lido stETH (~3.5-4.0%), Rocket Pool rETH (~3.2-3.8%), Frax Ether sfrxETH (~4.0-4.5%), Coinbase cbETH (~3.0-3.5%). Restaking (EigenLayer): additional yield from AVSs (2-5% in early days) but adds slashing risk from AVSs beyond standard validator penalties.
Validator Yield Components
Consensus layer rewards: ~2–3% APY from attestation and proposal rewards. Decreases as more ETH is staked (reward dilution).
MEV (Maximal Extractable Value): An additional 1–2% APY from MEV-boost — validators selling their block proposal slot to specialized builders who extract MEV. Highly variable (spikes during high-volatility periods).
Total validator yield (2025 estimate): 3–5% APY including MEV. Lower than early post-Merge period when fewer validators were competing.
Liquid Staking Yield Comparison
| Protocol | Symbol | APY (approx.) | Notes |
|---|---|---|---|
| Lido | stETH | ~3.5–4.0% | Largest LST by TVL |
| Rocket Pool | rETH | ~3.2–3.8% | More decentralized |
| Frax Ether | sfrxETH | ~4.0–4.5% | Dual-token model boosts yield |
| Coinbase Staked ETH | cbETH | ~3.0–3.5% | Institutional, lower yield |
| Mantle Staked ETH | mETH | ~3.5–4.2% | Newer, competitive |
Restaking (EigenLayer)
EigenLayer introduced restaking: staked ETH (or LSTs) can be restaked to additionally secure 'Active Validated Services' (AVSs) — oracle networks, bridges, data availability layers. Restakers earn additional yield from AVSs.
Restaking yield (2025): Varies by AVS participation. Early restakers earned 2–5% additional yield in EigenLayer points (converted to EIGEN tokens). Long-term yield: determined by AVS demand for security.
Risk: Restaking introduces 'slashing risk' from AVSs — if an AVS has a bug or malicious validator, restaked ETH can be slashed beyond standard validator penalties.