Ethereum has evolved. With the shift from proof-of-work to proof-of-stake, mining is no longer about powerful GPUs or energy-hungry rigs. Instead, Ethereum 2.0 staking allows you to earn passive income simply by holding and locking your ETH. Whether you're a long-term holder or exploring DeFi opportunities, staking can boost your returns by 3% to 6% annually—with minimal risk and no hardware required.
This guide breaks down everything you need to know about ETH staking, focusing on leading liquid staking protocols like Lido and Rocket Pool, how they work, their pros and cons, and how to get started—especially using user-friendly platforms like OKX Web3 Wallet.
What Is Ethereum 2.0 Staking?
Before Ethereum’s upgrade, “mining” meant validating transactions using computational power. Now, stakers secure the network by locking up ETH as collateral. In return, they earn rewards in the form of additional ETH.
To stake directly on the Ethereum network, you’d normally need 32 ETH—a significant barrier for most users. That’s where liquid staking derivatives (LSDs) come in.
Liquid staking lets you stake any amount of ETH and receive a tokenized version (like stETH or rETH) that represents your staked assets plus accrued rewards. These tokens remain liquid, meaning you can trade, lend, or use them across DeFi platforms—unlocking yield without sacrificing flexibility.
👉 Discover how to start earning yield on your ETH with seamless staking integration.
Why Stake ETH? The Passive Income Edge
Holding ETH is one thing. Letting it work for you is another.
By staking, you:
- Earn annual percentage yields (APY) between 3% and 6%
- Contribute to network security and decentralization
- Gain exposure to compounding returns through reinvested rewards
- Maintain liquidity via LSD tokens
Compared to leaving ETH idle in a wallet, staking is a low-effort way to enhance your portfolio’s performance—especially in a bear or sideways market.
Lido: The Market Leader in Liquid Staking
How Lido Works
Lido is the dominant player in the liquid staking space, controlling over 70% of the LSD market share. When you stake ETH with Lido, you receive stETH (staked ETH) at a 1:1 ratio. Your ETH is pooled and delegated to professional node operators who validate transactions on Ethereum.
Over time, your stETH balance increases automatically as rewards accrue—no action needed.
Advantages of Lido
- No minimum stake: Stake any amount of ETH
- Full liquidity: Use stETH in DeFi protocols like Curve, Aave, or Uniswap
- User-friendly interface: Simple deposit and withdrawal process
- Wide ecosystem support: Integrated into dozens of wallets and platforms
Risks and Fees
While convenient, Lido isn’t without trade-offs:
- Centralization concerns: Lido relies on a small set of node operators and governance entities
- Smart contract risk: As with all DeFi protocols, bugs or exploits could impact funds
- Fee structure: Lido charges a 10% fee on staking rewards (paid to node operators and insurance fund)
Despite these, Lido remains a top choice due to its maturity, reliability, and deep liquidity.
Rocket Pool: A More Decentralized Alternative
If decentralization is a priority, Rocket Pool offers a compelling alternative.
How Rocket Pool Works
Rocket Pool uses a decentralized network of node operators and allows users to stake as little as 0.01 ETH through its rETH token. Unlike Lido, Rocket Pool distributes validation duties across thousands of independent nodes, reducing reliance on centralized entities.
When you deposit ETH, it’s matched with a node operator who runs the validator. In return, you receive rETH, which appreciates relative to ETH as rewards accumulate.
Key Benefits
- Greater decentralization: Thousands of node operators enhance censorship resistance
- Lower barriers to entry: Mini-pools allow smaller users to participate
- Transparent governance: Community-driven upgrades and decisions
- Competitive APY: Often slightly higher than Lido due to dynamic reward distribution
Trade-offs
- Lower liquidity: rETH has less trading volume than stETH
- Slower adoption: Fewer integrations compared to Lido
- Slightly more complex UX: Requires understanding of minipools and node matching
For users who value true decentralization over convenience, Rocket Pool is an excellent option.
How to Stake ETH: Step-by-Step Using OKX Web3 Wallet
You don’t need technical expertise to start staking. Here’s how to do it using the OKX Web3 Wallet, one of the most secure and user-friendly tools available.
- Download & Set Up OKX Web3 Wallet
Install the app or browser extension and create a secure wallet. Never share your seed phrase. - Transfer ETH to Your Wallet
Send ETH from an exchange or another wallet to your OKX Web3 address. - Access the “Earn” Section
Navigate to the “Earn” tab where staking options are displayed. - Choose Your Staking Protocol
Select either Lido or Rocket Pool based on your preference for convenience or decentralization. - Deposit ETH and Receive LSD Tokens
Confirm the transaction. Within minutes, you’ll receive stETH or rETH in your wallet. - Track and Reinvest Rewards
Watch your balance grow over time. You can also use your LSD tokens in other DeFi apps to earn additional yield.
Frequently Asked Questions (FAQ)
Q: Can I unstake my ETH anytime?
Yes—but with caveats. Since the Ethereum Shanghai upgrade, withdrawals are fully enabled. However, unstaking via official channels may involve queue delays. LSD platforms like Lido offer instant liquidity since stETH/rETH can be traded immediately on decentralized exchanges.
Q: Is staking ETH safe?
Staking carries moderate risk. While your principal is not at risk of slashing under normal conditions, smart contract vulnerabilities or governance attacks could affect LSD platforms. Always diversify and use reputable protocols.
Q: Do I still earn rewards if I use stETH in DeFi?
Absolutely. Your stETH continues to appreciate in value even when used in lending markets or liquidity pools. This enables double-dipping—earning staking rewards plus DeFi yields.
Q: What happens if the price of ETH drops?
Staking doesn’t protect against market volatility. If ETH price falls, your overall portfolio value decreases—even with accumulated rewards. Staking is best suited for long-term holders confident in Ethereum’s fundamentals.
Q: Are there tax implications?
In many jurisdictions, staking rewards are considered taxable income when received. Consult a tax professional familiar with crypto regulations in your country.
Q: Which is better: Lido or Rocket Pool?
It depends on your priorities:
- Choose Lido for ease of use, high liquidity, and broad integration.
- Choose Rocket Pool for stronger decentralization and alignment with Ethereum’s ethos.
Final Thoughts: Turn Idle ETH Into Active Income
Ethereum 2.0 staking transforms passive holdings into productive assets. With liquid staking protocols like Lido and Rocket Pool, you no longer need 32 ETH or technical know-how to participate.
Whether you prioritize convenience or decentralization, there's a solution that fits your strategy. And with tools like the OKX Web3 Wallet simplifying access, now is the perfect time to start earning yield on your ETH.
Don’t let your crypto sit idle. In a space built on innovation and opportunity, every ETH can do more than just wait—it can work for you.
👉 Unlock the full potential of your digital assets with secure, integrated staking solutions.