Lido, a liquid staking solution for ETH 2.0 backed by a number of leading blockchain staking providers is now live. Anyone can directly stake their ETH with Lido to contribute to the security of the ETH network whilst earning daily rewards for doing so. Users are able to stake Ethereum with Lido to earn up to a maximum of 18.10% a year in staking rewards.
When staking with Lido, users receive stETH tokens on a 1:1 basis representing their staked ETH. These stETH balances can be used like regular ETH to earn yields and lending rewards, and are updated on a daily basis to reflect staking rewards.
Summary
- Users can stake whatever amount they want; there are no minimum Ethereum staking deposits with Lido.
- Receive stETH when staking; a tokenized version of staked ETH, which value updates daily to reflect your earned staking rewards.
- Stake directly from Metamask, Ledger, or another wallet of preference (there is no need to trust a centralized entity with staking).
- When users stake with Lido they stake across a set of proven validators with a track record of success in the field of staking to minimize slashing and hostage risks.
Ethereum Staking Rewards
The Ethereum staking reward rate is variable and changes based on the total amount of ETH staked. If the total amount of ETH staked is low then the reward rate will be higher, with a maximum annual reward rate of 18.10%.
Lido applies a 10% fee on staking rewards, split between node operators, the DAO, and an insurance fund. This fee can be changed by the DAO pending a successful vote.
Using stETH Token
When staking ETH with Lido, users receive stETH to reflect their staked Ethereum. This stETH token represents staked ETH, with its value changing daily to reflect earned staking rewards. Once transactions are enabled on Eth2, users can redeem their staked ETH using stETH.
stETH is a liquid token that can be traded, sent, lent, and more, allowing users to participate in DeFi activities even after staking.
“Over the coming weeks, we will be seeing the growth of the Lido and stETH ecosystem, with stETH evolving as a building block for other applications and protocols. As more and more applications begin to allow for interaction with stETH, the benefits of liquid Ethereum staking will become more and more obvious. In addition to this, we aim to see the growth in Lido DAO discussions, with incoming proposals on validator admissions, fee distributions, and more.”
– The Lido Team
Discussion about this post