Native staking
Native staking means running a validator (or delegating to one) directly on the blockchain's consensus layer. On Ethereum, this requires 32 ETH and running validator software 24/7. On Solana, you can delegate any amount of SOL to a validator.
Your tokens are locked in the staking contract. You earn rewards directly from the protocol. When you want to unstake, there's a waiting period (variable on Ethereum, 2-3 days on Solana).
Liquid staking
You deposit tokens into a liquid staking protocol (Lido, Rocket Pool, Marinade), which stakes them across multiple validators on your behalf. You receive a receipt token (stETH, rETH, mSOL) that represents your staked position and can be used in DeFi.
The comparison
- Minimum amount. Native: 32 ETH ($100K+) for Ethereum solo staking, any amount for delegation on other chains. Liquid: No minimum — you can stake any amount.
- Liquidity. Native: Locked. Can't use the tokens until you unstake. Liquid: Receipt tokens are tradeable and usable in DeFi immediately.
- APY. Native: Full protocol rewards (3-5% for ETH). Liquid: Slightly lower due to the protocol's fee (typically 10% of rewards).
- DeFi composability. Native: Zero — tokens are locked. Liquid: Full — use stETH in Aave, Curve, MakerDAO for additional yield.
- Technical requirements. Native (solo): Run validator hardware 24/7. Native (delegated): None. Liquid: None — just deposit.
- Smart contract risk. Native: Minimal — only the consensus layer contract. Liquid: Additional risk from the protocol's smart contracts.
- Slashing risk. Native: Direct — your stake is slashed if your validator misbehaves. Liquid: Distributed — the protocol spreads across many validators, diluting individual slashing impact.
- Centralization. Native (solo): Maximally decentralized. Liquid: Depends on the protocol — Lido has centralization concerns, Rocket Pool is more distributed.
When to choose native staking
- You have 32+ ETH and want maximum rewards with minimal counterparty risk
- You're comfortable running validator software (or using a staking service)
- You don't need liquidity — these tokens are a long-term hold
- You value decentralization and want to contribute directly to network security
When to choose liquid staking
- You have less than 32 ETH (or want lower commitment)
- You want to use staked assets in DeFi for additional yield
- You want flexibility to exit quickly by selling the receipt token
- You don't want to run infrastructure
The hybrid reality
Many sophisticated users do both: solo stake a portion for maximum decentralization and rewards, and liquid stake another portion for DeFi flexibility. The "right" answer depends on your capital, technical skills, and risk tolerance.
Before either option
Staking in any form means committing capital and accepting risks — slashing, smart contract bugs, price volatility of the underlying asset. Make sure you understand ETH's price behavior and market dynamics before locking capital. Korvex gives you that understanding through demo trading with real market data and zero financial risk.