Analysis of the Differences in Staking Business Models between Ethereum and Solana

Ethereum Network's Staking Ecosystem

Lido's business model

Lido, as a leading liquid staking project, primarily provides users with ETH staking services. Its business logic is based on:

• ETH staking threshold is high, Lido lowers the threshold
• Issuing stETH tokens provides liquidity
• Sources of income: consensus layer income and execution layer income

Lido currently has a market share of nearly 90%, but faces accusations of centralization.

Eigenlayer's Restaking model

Eigenlayer proposes the concept of Restaking, allowing already staked ETH to be staked again for additional returns. Main features:

• Provide AVS( active verification service )
• Supports two methods: LST and native restaking
• Revenue comes from fees for using AVS services.

Current returns are primarily token incentives, and real demand remains uncertain.

Liquid Restaking of Etherfi

Etherfi offers Liquid Restaking Token ( LRT ), simplifying the user participation process in restaking:

• Users deposit ETH to earn eETH
• eETH can earn dual rewards from staking and restaking.
• Occupying 90% of Etherfi's TVL, becoming the fourth largest staking entity.

The LRT protocol is similar to the ETH yield aggregator, but relies on Lido and Eigenlayer without directly entering each other's domain.

Solana's Staking Ecosystem

Solana's swQoS mechanism

Solana has implemented a stake-weighted Quality of Service mechanism this year:

• The staking ratio determines the trading priority.
• Improve the success rate of network transactions
• Beneficial for large stakers, but there are centralization risks.

Solayer's Restaking model

Solayer provides "endogenous AVS" based on swQoS:

• Mainly aimed at protocols that require trading reliability, such as DEX.
• The essence is "transactional leasing platform"
• Direct issuance of LST, supporting native restaking

Advantages of Solana Staking

Compared to Ethereum, Solana's staking-related protocols have greater potential:

1. The underlying returns of PoS are higher and the gap is widening.
2. Trading sorting revenue has recently surpassed Ethereum
3. swQoS brings additional leasing demand
4. The protocol can flexibly expand its business scope.

These advantages may further expand in the future, making Solana's staking and restaking a better business than Ethereum.