stETH Surpasses cbETH Yields Post-Pectra Upgrade

Lido's stETH continues to outperform Coinbase's cbETH in terms of yield after the Pectra upgrade and subsequent reward changes. The Pectra upgrade, launched in May 2025, allows validators to hold up to 2,048 ETH and automates reward compounding, increasing capital efficiency for large stakers.

Lido takes a 10% fee on staking rewards, while Coinbase takes a 25% commission, resulting in Lido's stETH providing a 3.1% net yield compared to cbETH's 2.8%. The popularity of Lido grew as users sought to avoid the 32 ETH minimum required for native staking.

stETH remains the dominant liquidity tool in the Ethereum ecosystem, with over 100 DeFi protocols accepting it and large lending markets like Aave using it as collateral.