You staked your ETH. You got stETH. It's earning 3% APR. Congratulations — you're earning less than a high-yield savings account. But here's the thing about liquid staking tokens: they're not just receipts. They're productive assets. You can lend them, LP them, restake them.
Yield stacking is the art of deploying your LST into multiple DeFi protocols simultaneously so that each dollar of staked ETH earns yield in two, three, even four places at once. Done right, you turn 3% staking into a blended 6–10%. Done wrong, you stack risk on top of risk and wonder how a "safe" staking position lost money.
TL;DR. Your LST already earns base staking (~2.5–3.5% APR). Stack it by: (1) supplying wstETH to Aave for lending yield, or (2) LP-ing wstETH/ETH on Curve for fees, or (3) restaking it on EigenLayer for AVS rewards. Blended yields range 5–12%. Each layer adds smart contract risk — never stack more than you're willing to lose, and favor wstETH for deepest liquidity.
Why stacking works: LSTs are composable
The magic of liquid staking tokens is that they're tradable. Unlike solo staking (where your ETH is locked), stETH or rETH can be moved into any DeFi protocol that accepts them. That means your staked ETH keeps earning staking rewards while it earns yield elsewhere.
As of mid-2026, roughly 14.4 million ETH is deployed across liquid staking protocols — about 36% of all staked ETH. Lido's stETH alone is accepted as collateral across 100+ DeFi protocols. The composability is real.
Layer 1: Lending your LST on Aave
The simplest stack: deposit wstETH (wrapped stETH) into Aave as a lender. Borrowers pay interest to access it, and you earn a share.
Why this works: wstETH is a top-tier collateral asset on Aave, so it's in demand as borrowers use it to leverage ETH exposure. Supply APR for wstETH on Aave typically ranges from 1.5% to 4% on top of your base staking yield.
Blended: ~3% base staking + ~2.5% Aave supply = ~5.5% APR, with low impermanent loss and instant liquidity.
Layer 2: LP-ing wstETH/ETH on Curve
A slightly more advanced stack: provide liquidity to the wstETH/ETH pool on Curve (or Balancer). You earn trading fees from swaps between the two near-identical assets.
Because wstETH ≈ ETH, impermanent loss is minimal (usually under 0.5% per year). The pool earns 1–3% in trading fees plus CRV/BAL token incentives.
Blended: ~3% base staking + ~2–5% LP fees/rewards = ~5–8% APR. Slightly higher risk than Aave (IL + smart contract) but higher yield.
You can check live pool yields on the DifiCalc yield discovery tool.
Layer 3: Restaking on EigenLayer
The highest-yield (and highest-risk) stack: deposit your stETH or rETH into a liquid restaking protocol to earn AVS rewards on top of everything else.
This is the most aggressive layer. You're adding EigenLayer's slashing risk to the LST protocol's risk to the base staking risk. The reward: an extra 2–6% APR from AVS fees and emissions.
Blended: ~3% base + ~2% Aave + ~4% AVS = ~9% APR. But a single slashing event could wipe out months of accumulated yield.
stETH vs rETH vs cbETH: which to stack
| LST | Base APR (net) | DeFi depth | Best for |
|---|---|---|---|
| Lido stETH | ~2.4% | Deepest (100+ protocols) | Most stacking strategies |
| Rocket Pool rETH | ~2.0% | Moderate | Decentralization focus |
| Coinbase cbETH | ~2.7% | Thin | Institutional/Coinbase users |
For most yield stacking, wstETH (wrapped stETH) is the default. It has the deepest liquidity, the most protocol integrations, and the tightest spreads. rETH is better if you care about validator decentralization; cbETH if you're already in the Coinbase ecosystem.
The stacking risks nobody mentions
Each layer multiplies risk. Here's what to watch:
- Depeg risk. During market stress (like the 2022 stETH depeg), stETH can trade 3–5% below ETH. If you need to exit, you realize that loss.
- Liquidation risk. If you use your LST as collateral to borrow and leverage, a price move can liquidate you. The 3% yield isn't worth losing your principal.
- Layered smart contract risk. Base staking risk × Lido risk × Aave risk × EigenLayer risk. Four protocols, four chances for an exploit.
- Liquidity collapse. If everyone tries to exit stETH at once, the Curve pool can't absorb the selling and the depeg widens.
The rule of thumb: each stacking layer should earn you at least 1–2% extra to justify the additional risk. If a layer adds 0.5% but doubles your protocol exposure, skip it.
Sources and further reading
- Lido — stETH mechanism, fees, and current APR.
- Rocket Pool — rETH and decentralized node operators.
- Aave — wstETH supply and borrow markets.
Frequently asked questions
What is LST yield stacking?
LST yield stacking means taking your liquid staking token (stETH, rETH, cbETH) — which already earns base staking yield — and deploying it into additional DeFi protocols like Aave, Curve, or EigenLayer to earn yield on top of yield.
Which LST is best for stacking?
Lido's stETH (or wrapped wstETH) has the deepest DeFi integration and tightest liquidity. For most stacking strategies, wstETH is the practical default.
What APY can stacked LSTs earn?
Base ETH staking pays 2.5–3.5% APR. Adding lending or LP typically brings the blended yield to 5–8%. Adding restaking can push it to 8–12%, but with higher slashing risk.
What are the stacking risks?
Each layer adds risk: smart contract risk from the LST protocol, the lending/DEX protocol, and any restaking layer. There's also depeg risk and liquidation risk if you use the LST as collateral.
Model your stacked LST return
Compare staking, lending, LP, and restaking yields side by side — with risk-adjusted net APY.
Open the Yield CalculatorMore guides in the DifiCalc blog, or read EigenLayer Restaking 2026 and Solana Staking vs Lending.