| description |
|---|
Understand the differences in risks, returns, and responsibilities |
| Token | Fee on Ethereum Rewards | Pros | Cons |
|---|---|---|---|
| xrETH | 0% | No fee, high decentralization | See Risks and Mitigations |
| osETH | 5%+ (depends on chosen vault, network average otherwise) | Slashing protection, some decentralization | Complex UX, minimum fee sacrifices decentralization |
| stETH | 10% | High liquidity depth | Highly centralized, higher fees, no slashing protection |
| rETH | 14% | Slashing protection, high decentralization | High fee |
Most xrETH depositors can expect similar returns and lower risks compared to running a basic Ethereum node (AKA "solo staking") on your own. In addition, xrETH is a liquid token, which allows for its usage in DeFi, boosting its potential even further.
When comparing to other node operation options, the landscape is more complex. Generally, using xrETH as a Constellation Node Operator allows for improved returns and full liquidity, and other solutions are available for users that wishing to maximize returns even at the cost of liquidity or utility.
| Method | Estimated Returns* | Pros | Cons |
|---|---|---|---|
| xrETH | 100% of solo staking | Usable in DeFi, which may boost returns dramatically | See Risks and Mitigations |
| xrETH + Constellation Node Operation | 121% of solo staking | Usable in DeFi, which may boost returns dramatically | See Risks and Mitigations |
| Solo staking | 100% of solo staking | No SC risk | Fully locked, must run a node, risk and returns dependent upon individual performance |
| Rocket Pool (LEB8) | ETH: 130-142% of solo staking RPL: ~6% APR | Higher returns than solo staking | Fully locked, must run a node, risk and returns dependent upon individual performance |
| Lido CSM | 237% of solo staking | Highest returns | Fully locked, must run a node, risk and returns dependent upon individual performance Limited to 16 ETH |
*Estimated Returns are sourced from external data and are not guaranteed. NodeSet is not responsible for the creation of or any inaccuracy in this data.