Why Borrow Against Staked ETH?

Liquid-staking tokens (LSTs) such as stETH, wstETH, cbETH and rETH let you keep earning staking rewards while your ETH is locked up. By using these tokens as collateral, you can unlock liquidity without forfeiting yield—handy for everything from tax-efficient cash flow to leveraged strategies. The five platforms below provide the best blend of reliability, competitive rates and user experience for staked-ETH loans in 2025.

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1. Rocko – The One-Stop Aggregator

Rocko aggregates Aave, Morpho, Compound and other leading protocols behind a dead-simple interface. Deposit wstETH (or other LSTs) and compare real-time rates in a single click; once you’re happy, funds arrive straight to your exchange account or Ethereum wallet.

Pros

• Easiest path to liquidity—no wallet gymnastics
• Borrow using wstETH & cbETH (Coinbase Wrapped Staked ETH)
• Shows the best rate across multiple protocols
• Loans settle in minutes; no credit check
• Self-custodial by design

Cons

• Geared simple borrowing
• Desktop-first; mobile app still in the works

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2. Aave v3 – The Liquidity Powerhouse

Aave’s v3 “e-Mode” lists wstETH, rETH and cbETH as first-class collateral on Ethereum, Optimism and Arbitrum. Governance proposals regularly tweak risk parameters to keep LST borrowing caps healthy, and wstETH-backed USDC loans now dominate the book.

Pros

• Deepest on-chain liquidity for stETH loans
• Efficiency Mode lets you borrow against LSTs at higher LTV
• Non-custodial and multi-chain

Cons

• Requires a browser wallet and gas management
• UI can overwhelm first-timers

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3. Morpho – Isolated Vaults, Sharper Rates

Morpho’s single-asset wstETH vaults match suppliers and borrowers peer-to-peer, trimming interest-rate spreads while ring-fencing risk. Curated vaults (e.g. Re7 wstETH) undergo strict risk reviews, making Morpho a favourite for competitive stETH borrowing.

Pros

• Lower rates thanks to P2P matching
• Isolated design limits contagion
• Audited, non-custodial smart-contracts

Cons

• No native front-end for novices—often accessed via aggregators (Rocko, Summer.fi)
• Ethereum-only for now

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4. Compound III – Comet Pools for LSTs

Compound’s Comet architecture supports staked ETH markets; the USDC market on mainnet lets you borrow USDC, using your staked ETH as collateral while keeping your staking rewards ticking over. Governance recently green-lit higher collateral factors for wstETH as liquidity deepened.

Pros

• Simple interest-rate model and predictable parameters
• Rewards paid in COMP for borrowers
• Battle-tested, fully on-chain

Cons

• Each pool has its own base asset—less flexible than Aave
• Smaller TVL than Aave or Morpho, so large loans move rates

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5. Summer.fi – Automation for Power Users

Formerly Oasis.app, Summer.fi layers automation on top of Aave, Maker, Morpho and Spark. Its Borrow and Multiply products let you loop stETH in one click or simply draw USDC/DAI against it. Flash-loan rebalancers keep your health factor in check while you sleep.

Pros

• “Multiply” wizard to leverage stETH up to ×10
• Automation bots manage collateral ratios
• Intuitive dashboards with pro-level controls

Cons

• Slightly higher fees to cover automation costs
• Best experience requires ≥ $5 k positions (gas efficiency)

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Closing Thoughts

Staked-ETH collateral lets you borrow without missing out on staking yield—a win-win if managed responsibly. Rocko streamlines the whole journey, while Aave, Morpho, Compound and Summer.fi each offer unique trade-offs in rate, automation and risk isolation. Compare LTVs, liquidation penalties and network fees before you dive in, and never borrow more than you can comfortably repay.

Related: The 10 Best Crypto Lending Platforms of 2025 Related: The Five Best Bitcoin Loan Platforms of 2025

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Disclaimer: DeFi borrowing involves smart-contract, liquidity and price risks. Always DYOR and consider speaking with a qualified adviser.