Lido is an Ethereum-based staking protocol that allows users to stake their ETH and receive rewards in return. The platform aims to solve the illiquidity, immovability, and accessibility issues associated with staking on ETH 2.0. The platform is built on Ethereum 2.0’s Beacon chain, and users can earn rewards without having to lock Ether in smart contracts or take part in the maintenance of the staking infrastructure.

The stETH token represents the staked ETH on the Lido platform. Any associated staking rewards are also distributed in stETH. stETH is pegged 1:1 to the value of ETH and can be used in exactly the same way as its counterpart, ie. across DeFi products operating on the Ethereum network.

What are Lido Staked Ether’s key features and how does it work?

In order to receive stETH tokens, a user must deposit ETH into smart contracts on the Lido platform. Tokens are then staked on ETH 2.0 by smart contracts facilitated by node operators. The platform collates and then stakes on Ethereum 2.0 in batches of 32 ETH, as required by the network. The amount of stETH distributed is proportional to the amount of Beacon chain Ether. A 10% fee is charged from the accumulated staking reward, half of which is sent to node operators and the other half goes towards the Lido Treasury and its activities.

The Lido staking protocol is governed by the Lido DAO, which is built on Aragon framework. Governance token holders are entitled to take part in the DAO’s activities which include voting on key metrics and parameters. For example, determining fees, and assigning node operators and oracles, among other key decisions. LDO is the token required for participating in DAO operations. The more LDO held the more weight during a vote. The DAO also takes charge of delegating accumulated service fees and deciding how they are spent. This could include insurance, research and development, as well as protocol upgrades.

The Lido platform is secured via its innovative use of validators. Users stake across many validators, instead of just one, which helps to minimize associated risks and prevents malicious attacks.

The Lido ecosystem comprises other Liquid Staking Protocols, as well as the Ethereum one as outlined here. For example, Lido Liquid Staking Protocols exist for Terra, Solana, Polygon, and Cosmos.

What can stETH be used for?

As mentioned, stETH can be used exactly in the same way as ETH. It can be transferred at any time and redeemed (converted back into ETH) as a user wishes.

Examples of such applications where stETH can be used are:

Balancer which operates as an automated portfolio manager and trading platform;
Curve, an exchange liquidity pool built for trading stablecoins;
MakerDAO which lets users use digital assets as collateral for loans;
Harvest Finance, which is an application allowing users to high earn yields across DeFi protocols.

Where can you buy stETH?

stETH is available for trading on the following CEXs and DEXs listed here. The most popular platforms with the highest liquidity are Gate.io, Uniswap V2, and Bybit Swap. The price of stETH will vary depending on the choice of exchange and overall market conditions. For up-to-date and historic data for stETH market price, please view the price charts on this page.