Written by: Siddhant Kejriwal Compiled by: Glendon, Techub News

With the development of the cryptocurrency industry, staking has become one of its An indispensable cornerstone that plays an important role in cybersecurity and investor engagement. By participating in staking, individuals can not only contribute to the stable operation of the blockchain network, but also unlock opportunities for passive income. Specifically, the benefits of participating in staking include:

1. Enhanced cryptoeconomic security: In essence, staking involves locking a certain amount of cryptocurrency to Support the operation of blockchain networks. This process is especially critical for proof-of-stake (PoS) blockchains, where validators confirm transactions based on the amount of cryptocurrency they stake. This mechanism ensures the security of the network and closely connects the interests of participants with the healthy development of the blockchain.

2. Earn passive income: In addition to enhancing network security, staking also provides attractive financial incentives. By staking their assets, investors can earn rewards, usually in the form of additional cryptocurrency tokens. This method of income generation meets the needs of both novice and experienced investors looking to maximize returns without active trading. In some projects, staking may also involve airdrop activities, providing pledgers with additional opportunities for asset appreciation.

3. Launch new projects through re-pledge: One of the latest innovations in the staking field is "Restaking", which allows pledged assets to be used in multiple protocols be reused. This approach allows new projects to leverage the security and capital of existing networks, effectively bootstrapping their growth. For example, platforms such as EigenLayer facilitate re-staking by allowing users to stake their ETH or liquid staking tokens and extend cryptoeconomic security to other applications on the network, bringing further benefits to investors.

It should be noted that although re-staking provides investors with opportunities to increase returns and enhance network support, it is also accompanied by some complexities and risks that cannot be ignored. risk. As 2025 approaches, the DeFi staking space will continue to boom, providing investors with more options, and this article will take you through the top DeFi staking platforms worth keeping a close eye on.

DeFi staking involves locking cryptocurrency assets in smart contracts to supportSupport the operation of blockchain networks, especially those that employ proof-of-stake (PoS) consensus mechanisms. In a PoS network, validators confirm transactions and create new blocks based on the amount of cryptocurrency they stake. Staking typically requires deploying a full node and meeting the network's minimum staking requirements, allowing participants to validate transactions and participate in network consensus to earn rewards.

Main concepts in DeFi staking

Smart contracts and pledge contracts: Smart contracts are A self-executing protocol encoded on the blockchain ensures that the staking process is automated, transparent and secure. When you stake your tokens, you actually become a validator (or delegator) of the network, jointly maintaining the security and stability of the network. In return, you will be rewarded in the form of new tokens or a share of transaction fees.

Staking rewards: Staking rewards typically include newly minted tokens and a share of transaction fees as an incentive for participants to contribute to network security and operations.

Punishment mechanism: In order to maintain the integrity of the network, the PoS network implements a penalty mechanism "Slashing" if the verifier engages in malicious activities or fails to perform its duties , it will reduce its pledged funds. This mechanism is designed to deter inappropriate behavior from occurring.

DeFi staking vs. centralized staking

Comparing DeFi staking and centralized staking services At this time, the following key factors are more prominent:

Ownership: DeFi staking allows users to retain actual ownership of their assets because they can control their private keys. In contrast, centralized staking requires users to entrust their assets to a third party, thereby giving up direct control.

Transparency: The DeFi platform runs on open source smart contracts, providing a transparent staking process and reward distribution. Centralized platforms may lack this transparency, making it difficult for users to verify how rewards are calculated and distributed.

Security and control: DeFi staking gives users greater control over their assets, reduces reliance on intermediaries, and reduces counterparty risk. Centralized staking involves entrusting assets to the platform, which can pose security risks if the platform is attacked.

Mechanism: In DeFi staking, users entrust their pledges to a permissionless verifier network and directly participate in the network’s consensus mechanism. Centralized staking platforms pool user funds and use verification selected by the platform staking, often without disclosing the specifics of the process

Learning Curve: DeFi. Staking can be complex, requiring users to navigate various platforms and manage private keys, which can be challenging for beginners. Centralized platforms offer a more user-friendly, Web2-like experience that simplifies at the expense of decentralization. The staking process

Conclusion

In DeFi. Choosing between a centralized staking platform comes down to personal preference, especially regarding control, transparency, and ease of use. Next, this article explores the top DeFi staking platforms expected to make an impact in 2025 and provides some insights. /p>DeFi Staking Platform

The following is the DeFi we are about to discuss A comprehensive overview of the staking protocol, highlighting its main features, associated tokens, and current Annual Percentage Rate (APR) or Annualized Yield (APY)

Lido Finance

Lido Finance is a DeFi focusing on liquidity staking services Protocol. It enables users to stake their digital assets on multiple blockchain networks while maintaining liquidity, effectively solving the limitations of traditional staking such as asset locking and high entry barriers by issuing liquidity such as stETH for Ethereum. Lido Finance allows users to earn staking rewards while using their assets within the broader DeFi ecosystem.

Lido Finance Features

Liquidity Staking: Lido’s core service allows users to stake assets without locking them up. It offers staking token derivatives (such as stETH) that can be freely transferred, traded or Used in other DeFi protocols

Decentralized governance: by Lido Decentralized Autonomous Organization (DAO).) management, Lido ensures that decisions regarding protocol parameters, node operator selection, and fee structure are made jointly by LDO token holders.

Security measures: Lido hires experienced node operators and conducts regular audits to maintain the integrity and security of the staking process and minimize risks, Such as punishment reduction.

DeFi Integration: Lido’s liquid staking tokens have been widely accepted on various DeFi platforms, allowing users to participate in lending while earning staking rewards and activities such as revenue farming.

Supported Staking Tokens

Lido supports staking of multiple cryptocurrencies across different networks , including:

Ethereum (ETH): stake ETH and get stETH.

Polygon (MATIC): Stake MATIC and get stMATIC.

Solana (SOL): Stake SOL and get stSOL.

Polkadot (DOT): Stake DOT and get stDOT.

Kusama (KSM): Stake KSM and get stKSM.

LDO token and its utility

Lido’s native token LDO plays a role in the ecosystem Plays several key roles:

Governance: LDO holders participate in Lido DAO and vote on key decisions such as protocol upgrades, fee structures, and node operator selection. .

Incentives: LDO tokens can be used to incentivize liquidity providers and users who contribute to the growth and stability of the Lido protocol.

Summary

Lido Finance has now solidified its leading position in the DeFi space. As of December 2024, its total value locked (TVL) is close to an all-time high of $40 billion.

Lido’s growing dominance as the leading LST platform | Chart via DefiLlama

This growth reflects user interest in Lido’s liquidity staking solution and its integration within the DeFi ecosystem confidence is growing day by day. Additionally, Lido’s recently launched community staking module enhances decentralization by allowing permissionless node operators to participate, further strengthening the network’s security and resiliency.

Pendle Finance

Pendle Finance is a proxy that allows users to transfer the future income of income assets to DeFi protocol to monetize and conduct transactions. By separating the principal and income components of an asset, Pendle employs more advanced income management strategies, including fixed income, speculation on future income changes, and unlocking liquidity from pledged assets. This innovative approach brings traditional financial concepts such as interest rate derivatives into the DeFi space, providing users with greater control and flexibility over their investments.

Main features of Pendle Finance

Tokenization of earnings: Pendle allows users to tokenize earnings The coin is wrapped into Standardized Yield (SY) tokens, which are then split into Principal Tokens (PT) and Yield Tokens (YT). This separation allows the principal and future return components to be traded independently, thereby facilitating the implementation of strategies such as locking in fixed income or speculating on return fluctuations.

Pendle Automatic Market Maker (AMM): Pendle's AMM is designed for assets that decay over time, such as YT, providing optimized pricing and minimal slippage. It supports centralized liquidity and a dynamic fee structure that improves capital efficiency and reduces impermanent losses for liquidity providers.

vePENDLE governance: Pendle adopts a voting custody token model, and users can lock PENDLE tokenscoins to receive vePENDLE. This mechanism grants governance rights, allowing holders to participate in protocol decisions, provide direct incentives to specific liquidity pools, and earn a share of protocol revenue.

Supported pledged assets

Pendle supports multiple incomes in multiple blockchain networks Assets, including:

Ethereum (ETH): Pendle allows for the tokenization and trading of assets such as stETH (Lido’s liquidity staking token).

Stablecoins: Tokens from lending protocols such as Aave or Compound (such as USDC and DAI) can be used in Pendle's ecosystem.

Other income tokens: Assets generated by various DeFi protocols can also be integrated into Pendle's platform.

PENDLE token and its utility

PENDLE token is native to the Pendle ecosystem Utility and governance tokens. Its key features include:

Governance: PENDLE holders can lock their tokens to receive vePENDLE, granting them voting rights to participate in protocol governance decisions, such as Proposal and voting upgrades, fee structure and other key parameters.

Incentives: PENDLE tokens incentivize liquidity providers and users, promoting the growth and stability of the platform. Additionally, vePENDLE holders can direct incentives to specific liquidity pools, thereby increasing their returns.

Revenue sharing: vePENDLE holders have the right to share the revenue of the protocol, aligning the interests of the community with the success of the platform.

Summary

Pendle Finance introduces revenue tokenization and a platform dedicated to revenue trading. AMM has gradually become an important force in the DeFi field. As of December 2024, Pendle’s total value locked (TVL) has exceededOver $5 billion (data from DefiLlama).

Pendle’s integration with multiple DeFi protocols and its expansion into various blockchain networks such as Ethereum and Arbitrum further consolidate its presence in the DeFi ecosystem Position in the system as a versatile and valuable tool for revenue management.

EigenLayer

EigenLayer is an innovative protocol based on Ethereum, which introduces " The concept of “re-staking” allows users to reallocate their staked Ethereum (ETH) or Liquid Staked Tokens (LSTs) to enhance the security and functionality of other services built on the Ethereum network. By enabling the reuse of staked assets, EigenLayer facilitates the development of shared security models, application chains and rollup technologies that do not require an independent set of validators.

Main features of EigenLayer

Re-staking mechanism: EigenLayer allows ETH pledgers and LST holders Some choose to verify new software modules by re-staking their assets. These modules are called Active Verification Services (AVSs). This process extends Ethereum’s security to a wider range of applications, including data availability layers, oracle networks, and consensus protocols.

Permissionless token support: EigenLayer introduces permissionless token support, allowing any ERC-20 token to be added as a re-pledgeable asset . This expansion allows multiple tokens to contribute to the security of the decentralized network, promoting cross-ecosystem collaboration while enhancing the utility of various tokens.

EigenDA (Data Availability Layer): EigenLayer offers EigenDA, a low-cost data availability solution for Rollup and other Layer 2 solutions. EigenDA increases the scalability and efficiency of Ethereum-based applications by ensuring that data is easily accessible and secure.

Governance and flexibility: EigenLayer's architecture allows AVSs to customize their security parameters, including selecting specific tokens for re-staking and defining slashing conditions. This flexibility enables services to tailor their services to their unique needsCustomize security measures to promote a more resilient and adaptive ecosystem.

Supported re-hypothecation assets

EigenLayer supports a variety of assets for re-hypothecation, including:

Ethereum (ETH): Users can participate in ensuring the security of other services by re-staking their native pledged ETH.

Liquid pledged tokens (LSTs): stETH, rETH and other tokens can be re-pledged through EigenLayer, allowing holders to obtain additional rewards.

ERC-20 Tokens: With permissionless token support, any ERC-20 token can now be added as a re-pledgeable asset.

EIGEN token and its utility

EigenLayer has launched the EIGEN token, which is a A universal inter-subject work token designed to enhance the security of the AVS fork protocol supported by EigenLayer. The EIGEN token protects these protocols in the face of extreme situations, such as active attacks or security breaches, ensuring that the integrity of the blockchain modular stack is not compromised. By combining EIGEN tokens with re-staking ETH, EigenLayer provides users with a higher level of cryptoeconomic security.

Summary

According to DefiLlama data, as of December 2024, EigenLayer’s TVL has reached Approximately US$20.1 billion. As EigenLayer continues to evolve, it remains at the forefront of enhancing Ethereum’s security and scalability with its groundbreaking restaking protocol, providing new opportunities for users and developers to participate in and build on the Ethereum network.

Ether.fi

Ether.fi is a decentralized, non-custodial exchange The pledge protocol empowers Ethereum holders by allowing them to stake their assets while retaining control of their private keys. Ether.fi ReleaseThe liquid staking token eETH enables users to earn staking rewards and participate in the broader DeFi ecosystem without the limitations that come with traditional staking. This approach enhances the security, decentralization, and user autonomy of the Ethereum network.

Key Features of Ether.fi

Non-custodial staking: Unlike many staking services, Ether.fi ensures users maintain control of their private keys throughout the staking process, significantly reducing custody risk.

Liquidity Staking with eETH: When users stake ETH, they receive eETH, a liquidity token that represents their staked assets. This token can be used for lending and yield farming on various DeFi platforms while accruing staking rewards.

Integration with EigenLayer: Ether.fi partners with EigenLayer to provide a re-staking function, allowing users to earn additional rewards by protecting multiple decentralized applications (DApps) at the same time .

Operation Solo Staker: Ether.fi promotes decentralization by allowing individuals to operate their own validator nodes through the Operation Solo Staker program.

ETHFI token and its utility

Ether.fi’s native token ETHFI is within the platform Has multiple functions:

Governance: ETHFI holders have the right to participate in the governance of the protocol, affecting matters related to treasury management, token utility and ecosystem development. decision making.

Revenue sharing: A portion of the protocol’s monthly revenue is used to buy back ETHFI tokens, which may enhance its value and benefit token holders.

Staking incentives: Users can stake their ETHFI tokens to receive additional rewards, further incentivizing participation and keeping in line with the development of the platform.

Summary

Ether.fi has become a major player in the DeFi space, with its TVL exceeding $9.54 billion in December 2024, making it one of the leading re-staking protocols in the Ethereum ecosystem.

Ethena Finance

Ethena Finance is a DeFi based on Ethereum The protocol provides a crypto-native synthetic U.S. dollar called "USDe". Unlike traditional stablecoins that rely on fiat reserves, USDe maintains its peg through a delta hedging strategy and cryptocurrency collateral (primarily Ethereum), a design that provides a censorship-resistant and scalable solution.

Main Features of Ethena Finance

Synthetic USD (USDe): USDe is a Fully supported synthetic USD collateralized by crypto assets and managed via delta hedging. This approach ensures stability without relying on the traditional banking system, providing a resilient alternative to the DeFi space.

Internet Bond (sUSDe): By staking USDe, users can obtain sUSDe, a yield asset that the protocol generates over time. This mechanism allows users to earn passive income while maintaining exposure to stable assets.

Delta hedging mechanism: Ethena uses delta hedging, using short positions in the derivatives market to offset price fluctuations in mortgage assets. The strategy maintains USDe's peg to the U.S. dollar, ensuring stability even as markets fluctuate.

Non-custodial and decentralized: Ethena operates without relying on traditional financial infrastructure, providing users with complete control over their assets.

Supported Collateral Assets

Ethena primarily supports Ethereum as collateral for minting USDe. Users can deposit ETH into the protocol to generate USDe and then stake to receive sUSDe, thereby participating in the protocol’s revenue generation mechanism.

ENA Token and Its Utility

Ethena’s native governance token ENA plays several key roles in the ecosystem:

Governance: ENA holders can participate in protocol governance and influence decisions related to system upgrades, parameter adjustments, and overall strategic direction through voting.

Staking rewards: By staking ENA, users can earn sENA, which may accumulate additional rewards in the incentive mechanism within the protocol and provide higher reward multipliers.

Summary

DefiLlama data shows that as of December 2024, Ethena Finance’s TVL exceeds $5.9 billion.

Jito

Jito is a liquid staking protocol running on the Solana blockchain. Focus on Maximize Extractable Value (MEV) strategies. By allowing users to stake their SOL tokens in exchange for JitoSOL, a liquid staking token, Jito enables participants to earn staking rewards augmented by MEV revenue.

Jito’s main features

MEV-driven staking rewards: Jito integrates the MEV strategy to Increase staking rewards. By capturing and redistributing MEV profits, JitoSOL holders can earn higher returns than traditional staking methods.

Use JitoSOL for liquidity staking: After staking SOL, users will receive JitoSOL tokens representing their pledged assets. These tokens remain liquid, allowing users to participate in various DeFi activities while still earning staking rewards.

Non-custodial platform: Jito operates as a non-custodial platform, ensuring users retain control of their assets.

Enhance network performance: Jito helps improve network performance and reduce Sol by staking exclusively with validators running optimized softwareana spam on the blockchain.

Supported pledge assets

Jito mainly supports the pledge of Solana token SOL. Users can stake any amount of SOL and receive JitoSOL in return.

JTO token and its uses

Jito launched its native token JTO, which Various functions are performed in the ecosystem:

Governance: JTO holders can participate in protocol governance.

Staking rewards: By staking JTO, users can receive additional rewards.

Summary

Jito has experienced significant growth in the Solana ecosystem. According to its website data, as of December 2024, more than 14.5 million SOL tokens have been staked through Jito, with approximately 204 Solana validators participating. The platform offers a staking annualized yield (APY) of over 8%, reflecting its competitive advantage in the liquid staking market.

One ​​of Jito’s signature features is the integration of the MEV strategy to increase staking rewards. Additionally, Jito’s commitment to open source development is demonstrated through the release of Jito-Solana, the first third-party, MEV-enhanced validator client for Solana.

Babylon

Babylon is a groundbreaking protocol that brings staking to Bitcoin DeFi ecosystem. By allowing Bitcoin holders to stake their assets directly, Babylon allows users to earn while also contributing to the security of the proof-of-stake blockchain. This innovative approach eliminates the need to bridge, wrap, or transfer BTC to a third-party custodian, thereby maintaining Bitcoin’s inherent security and decentralization.

Main features of Babylon

Self-custodial staking: Babylon’s protocol allows BTC holders to stake assets without handing over control to an external entity. Users lock their Bitcoins in a self-custody manner, ensuring full ownership and security throughout the staking process.

Integration with PoS chains: By staking BTC, users can participate in protecting various PoS blockchains, including application chains and decentralized applications (DApps). This integration enhances the security of these networks and rewards stakers in return.

Quick unbundling: Babylon adopts the Bitcoin timestamp protocol to enable pledged BTC to be quickly unbundled. This feature ensures that users can quickly withdraw their assets without relying on social consensus, thus maintaining liquidity and flexibility.

Scalable re-staking: The protocol’s modular design supports scalable re-staking, allowing a single BTC stake to simultaneously secure multiple PoS chains. This feature maximizes earning potential.

Supported Staking Assets

Babylon focuses on using Bitcoin for staking purposes.

Summary

Babylon has achieved significant results, including the successful launch of its mainnet and Enable multiple staking caps. Notably, the protocol’s TVL exceeded $5.7 billion in December 2024.

The benefits of DeFi staking

1. Obtained through income farming Potential for high returns: DeFi staking often offers significant rewards, especially when combined with yield farming strategies.

2. Enhance control over funds: Users retain full ownership of funds through decentralized wallets without relying on third-party custodians.

3. Participate in governance: Staking governance tokens enables users to vote on protocol decisions and influence the future development of the platform.

4. Contribution to network security and operations: By staking, users can help protect the blockchain network and maintain decentralized operations.

5. Liquidity Staking Tokens: Liquidity Staking Tokens enable users to access staked capital while continuing to earn rewards.

6. Flexibility of income strategies: DeFi staking provides opportunities for multiple innovative strategies, such as by re-staking or using pledged tokens to participate in other DeFi activities. Achieve compound interest.

7. Access emerging ecosystems: Staking supports innovation by helping to bootstrap new protocols and ecosystems.

Risks of DeFi staking

1. Smart contract vulnerabilities: malicious attacks in smart contracts Or loopholes may lead to loss of pledged assets.

2. Impermanent losses in liquidity pools: Changes in token prices may reduce the value of assets in the liquidity pool, thereby affecting overall returns.

3. Fluctuation in token prices: The volatility of cryptocurrencies may affect the value of staking rewards.

4. Penalty reduction: In some networks, inappropriate validator behavior may result in penalties that reduce the amount of staked funds.

5. Protocol-specific risks: Emerging platforms may lack sufficient auditing or experience, thereby increasing the risk of operational failure.

6. Lack of liquidity: Pledged assets may be locked for a period of time, limiting the immediate availability of funds.

Strategies to reduce DeFi staking risks

1. Decentralize staking across multiple platforms: Your staked assets are spread across different protocols to reduce the impact of a single platform failure.

2. Research platform audit and security history: Choose platforms that have good security records and are regularly audited by third parties to ensure the safety of your funds.

3. Pay attention to token economics and protocol changes: monitor closelyToken supply changes, reward mechanisms, and governance decisions that may affect your staking strategy.

4. Leverage liquidity staking options: Maintain liquidity and flexibility while earning rewards by using protocols that provide liquidity for staking tokens.

5. Set risk limits: To manage risk exposure, determine the maximum percentage of your portfolio allocated to staking and stick to it.

6. Use reputable wallets and hardware security devices: Store your staked assets in a secure wallet to prevent potential hacking or phishing attack.

DeFi Staking allows you to earn rewards by supporting blockchain networks, although the exact steps may vary by protocol. The following provides a general guide:

Step One: Choose a Staking Protocol

Research There are different staking platforms, choose one that matches your goals, such as liquidity staking (e.g. Lido Finance or Jito) or revenue tokenization (like Pendle Finance).

Consider factors such as supported assets, security measures, and potential returns.

Step 2: Set up wallet

Choose a protocol-compatible wallet that you plan to use Hosted wallets such as Ethereum-based platforms MetaMask or Solana’s Phantom.

Keep your wallet secure by backing up your mnemonic phrase and enabling two-factor authentication.

Step Three: Obtain Tokens

Purchase the staking requirements through a cryptocurrency exchange Tokens (such as Lido’s ETH, Jito’s SOL).

Transfer tokens to your wallet.

Part 4: Connecting to the Staking Agreement

Visit the official website of the protocol (e.g., lido.fi, jito.network).

Follow the prompts to authorize the connection and connect your wallet to the platform.

Step 5: Pledge assets

Select the tokens you want to pledge and confirm amount.

Confirm the staking transaction and make sure you have enough funds to cover the transaction fees.

In a liquid staking protocol, you will receive a derivative token (such as stETH or JitoSOL) that you can use in the DeFi ecosystem.

Step 6: Monitor and manage your rights

Through the dashboard or agreement The interface regularly tracks your staking rewards and portfolio performance.

Consider leveraging the revenue tokenization capabilities of protocols like Pendle for additional strategies.

How to maximize DeFi staking returns

1. Diversify your staking portfolio: Investments are spread across multiple protocols to minimize risk and optimize returns.

2. Reinvest rewards: Use the rewards earned to increase returns by re-staking or participating in yield farming opportunities.

3. Stay informed: Stay aware of updates to protocol governance, token economics, and network upgrades that may impact staking rewards or security.

4. Optimize Gas fees: Schedule transactions when there is less network activity to reduce transaction costs.

5. Explore advanced strategies: Consider using protocols like Pendle Finance to lock in fixed returns or use tokenized assets to speculate on future returns.

7. Use Liquidity Collateral in DeFiCoins: To accrue additional rewards on top of staking rewards, deploy derivative tokens (e.g. stETH, JitoSOL, etc.) in lending or yield farming.

The steps and tips above will help you get started on your DeFi staking journey and unlock your full potential to generate passive income in the DeFi ecosystem.

This article explores some of the top platforms that may be in the spotlight in 2025, including Lido Finance, Pendle Finance, EigenLayer, Ether.fi, Ethena, Jito and Babylon. While each protocol provides basic staking services, it also has some unique features, such as revenue tokenization, re-staking or Bitcoin staking. Mastering and effectively utilizing these capabilities will be the key to unlocking real benefits. As the cryptocurrency market enters a new bull market, the DeFi field in 2025 is showing endless possibilities. Driven by continued innovation and widespread adoption, DeFi staking is expected to become an important way for us to obtain generous returns.