What a liquid-staking token represents
A liquid-staking token represents exposure to a staking protocol. stETH is associated with Lido and uses a rebasing model; rETH is associated with Rocket Pool and reflects an exchange-rate model. Holding either token is different from operating a validator directly.
Understand entry, accrual and exit
Verify the canonical token contract before acquiring a staking token. Review swap costs and the protocol’s accounting model. Exiting may involve a market swap or a protocol redemption queue. The token’s market price can differ from the value of its underlying staked assets.
Evaluate the protocol, not just the rate
Rewards vary with network conditions and protocol rules. Consider smart-contract, validator, slashing, liquidity and governance exposure. Self-custody of the token does not remove those dependencies. Review current protocol documentation rather than assuming a displayed rate is guaranteed.