Lido said in an October 23 comparison of European Ethereum exchange-traded products that staking allocation, fees and liquidity arrangements affect the rewards investors receive. Lido has a commercial interest in the comparison and promotes liquid staking, citing WisdomTree’s stETH-backed product as an example.
An unstaked buffer can reduce rewards, but it can also provide liquidity for redemptions. Native staking withdrawals depend on Ethereum network processes and queues. A transferable staking token offers a way to sell without waiting for those withdrawals, but a sale still needs buyers at an acceptable price, especially for a large trade.
