Protocol Overview
Lido and Rocket Pool dominate Ethereum’s liquid staking sector, enabling users to stake ETH while retaining liquidity via derivative tokens (stETH and rETH, respectively). Both protocols serve similar functions but differ fundamentally in design, governance, and token economics.
Key Differences
1. Protocol Design
| Feature | Lido | Rocket Pool |
|---|---|---|
| Validation | DAO-selected node operators | Permissionless minipools (16 ETH + RPL collateral) |
| Trust Assumptions | Centralized governance (LDO holders) | Decentralized (RPL-insured nodes) |
| Scalability | High (unlimited ETH allocation) | Limited by node operator adoption |
Summary:
Lido prioritizes scalability and capital efficiency, while Rocket Pool emphasizes decentralization and lower trust assumptions.
2. Adoption & Growth
Lido:
- Dominates with 28% of all staked ETH (~3.05M ETH, $10.3B TVL).
- Multi-chain strategy (supports Terra, Solana, Polygon).
- Deep liquidity via Curve’s stETH-ETH pool ($5.1B TVL).
Rocket Pool:
- Smaller share (~5% of staked ETH, 173K ETH, $571M TVL).
- Ethereum-focused, growing rETH integrations (e.g., Curve’s rETH-wstETH pool).
Summary:
Lido’s multi-chain approach grants a broader market, but Rocket Pool’s Ethereum specialization fosters niche loyalty.
3. Token Economics
| Metric | LDO (Lido) | RPL (Rocket Pool) |
|---|---|---|
| Utility | Governance-only | Governance + Node collateral (1.6 ETH worth) |
| Demand | No organic demand; farming sell pressure | Organic demand from node operators |
| Inflation | High (emission for incentives) | Balanced (rewards tied to node growth) |
Summary:
RPL’s utility-driven demand may outperform LDO’s governance-only model long-term.
FAQ Section
Q1: Which protocol is more decentralized?
A: Rocket Pool, due to its permissionless node operator model and RPL-insured minipools.
Q2: Can I use stETH/rETH in DeFi?
A: Yes! stETH is widely integrated (Aave, MakerDAO), while rETH is gaining traction (Curve, Balancer).
Q3: Which token has better value capture?
A: RPL’s collateral requirement creates inherent demand, whereas LDO relies on speculative governance value.
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Final Verdict
- Choose Lido for scalability, multi-chain exposure, and deep liquidity.
- Choose Rocket Pool for decentralization, Ethereum alignment, and token utility.
Investment Note: While Lido may dominate adoption, RPL’s token design could offer superior long-term value.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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