stETH vs cbETH vs Kraken: 2026 ETH Staking Comparison
Three of the most-used ways to earn yield on Ethereum (Lido's stETH, Coinbase's cbETH, and Kraken's ETH staking) look almost interchangeable on the surface. The gross APRs cluster within a percentage point of each other. The difference that actually decides your return is the commission, the custody model, and how the token behaves under stress. RWTS doesn't pick a favorite. We rate. You decide.
This comparison weighs all three on yield-after-fee, custody, liquidity, and Trust Score.
The yield picture: closer than it looks
Start with the network. The base APR for staking across the Ethereum network is currently around 2.78%, a significant drop from the 4%+ levels seen in 2023, and validators running MEV-Boost can earn an additional 0.5%-1% on top of the base yield, bringing total annual returns to 3.3%-3.8%.
Liquid staking tokens track close to that base. Among liquid staking protocols, Lido's stETH seven-day average APR sits at 2.95%, while Ebunker's Ethereum staking APR is 3.12%. Other trackers put stETH slightly lower; Lido Staked Ether liquid staking currently offers 2.60% APY. The exact figure drifts with network activity, but the takeaway holds: gross yields are clustered.
The rewards mechanism for stETH is passive by design. The rewards appear automatically in your wallet without requiring any claims or manual actions, and compound continuously as your increased balance earns additional rewards.
Where the spread actually opens: commission
Gross yield is not what reaches your wallet. The commission does the real work. Coinbase generally keeps 25% of staking yields, whereas Binance takes 10% as commission, and by comparison Kraken's commission averages 15%, depending on the asset.
On Coinbase specifically, the net yield reflects that haircut. Rewards of around 2.8% to 3.5% APY accrue daily, with Coinbase taking a 25% commission. Liquid staking protocols charge far less. Liquid staking protocols like Lido charge around 10% of your rewards as a fee, but you get a tradeable token (stETH) in return that you can use elsewhere in DeFi.
The compounding math is not trivial. One worked example shows the gap clearly: a trader who stakes on Coinbase at a 35% commission nets 1.95%, while a trader using Lido at a 10% commission nets 2.70%, and over three years with compounding, the yield gap exceeds $1,200 on a single 20 ETH position. If maximizing after-fee yield is the goal, the lower-commission path wins on math alone.
Custody and liquidity: the real fork
This is where stETH and the exchange tokens diverge.
stETH is the deep-liquidity, DeFi-native choice. stETH is non-custodial and accepted across lending and collateral markets. But it carries peg history. The stETH/ETH peg depends fundamentally on arbitrage mechanisms and market confidence, and during the 2022 depeg event, even sophisticated market participants faced challenges exiting positions at favorable prices. Lido mitigates validator risk by spreading stake. Lido distributes stake across 38 professional node operators to minimize this exposure, and maintains a slashing insurance fund.
cbETH is the regulated, custodial path. With Coinbase ETH staking, you receive cbETH, a liquid staking token that you can sell or use in DeFi, though it often trades at a slight discount to spot ETH, and custody is custodial, Coinbase holds your private keys, so you are trusting their security and regulatory compliance.
Kraken ETH staking sits between the two on flexibility. It offers both locked and flexible staking, so you can choose your own terms. Its yield is competitive; Kraken's ETH staking APR is usually around 3.4% - 3.7%.
The Trust Score verdict
Three T3 tokens, three different reasons for the rating:
- cbETH: T3 (85/100): the highest of the three, reflecting custody strength and regulatory standing, offset by a steep commission.
- Kraken ETH.S: T3 (79/100): flexible terms and a lighter commission than Coinbase, with custodial counterparty risk.
- stETH: T3 (72/100): the deepest liquidity and lowest fee, scored down for peg history and the centralization debate around Lido's share.
The scoring logic (custody, transparency, redemption, counterparty) is detailed in our Trust Score methodology. For the rebasing-versus-wrapped mechanics that underpin how stETH accrues, see our companion piece, stETH vs wstETH: Rebasing and Wrapped ETH Staking Comparison. For the full landscape of liquid staking and ETH yield products, our Ethereum yield hub tracks every option.
The bottom line: if after-fee yield and DeFi composability matter most, stETH's ~10% fee wins on math. If regulated custody and one-click simplicity matter more, cbETH's higher Trust Score buys peace of mind at the cost of yield. Kraken splits the difference. We rate. You decide.
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