Why does stETH sometimes trade at a discount to ETH?

Before the Merge, stETH could not be redeemed — any holder needing liquidity had to sell on-market, creating discount pressure. Now with withdrawals enabled, deviations from 1:1 are quickly arbitraged away.

What is the difference between rebasing and non-rebasing liquid staking tokens?

Rebasing tokens (stETH): token balance increases as rewards accrue. Non-rebasing (rETH): token count stays fixed but each token's ETH value increases. Both are economically equivalent; tax treatment differs by jurisdiction.

Liquid Staking Token Premium/Discount Calculator

Calculate the premium or discount of liquid staking tokens (stETH, rETH, MATIC staking derivatives) to their underlying staked asset. Analyze redemption arbitrage opportunities, liquidity premium, and protocol fee impact on liquid staking returns.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate the premium or discount of liquid staking tokens (stETH, rETH, MATIC staking derivatives) to their underlying staked asset. Analyze redemption arbitrage opportunities, liquidity premium, and protocol fee impact on liquid staking returns. Use the liquid staking premium result to inform your calculation.

Liquid Staking Token Premium/Discount Calculator

How to Use

Frequently Asked Questions

Why does stETH sometimes trade at a discount to ETH?

What is the difference between rebasing and non-rebasing liquid staking tokens?