Prix Lido Staked ETH 

StETH

Lido is a decentralized autonomous organization (DAO) that is governed by its community members. The team behind Lido consists of various node operators, developers, auditors and partners who contribute to the project’s security, functionality and growth.

Some of the node operators include P2P Validator, Chorus One, Staking Facilities, Certus One, Stakefish and others. Some of the developers include Lido DAO members, Paradigm Research, Sigma Prime and others. Some of the auditors include Quantstamp, Sigma Prime and Trail of Bits. Some of the partners include Curve Finance, 1inch Network, Yearn Finance and others.

When you stake your ETH with Lido, you receive stETH in exchange. This token represents your stake in the Ethereum network and can be traded or held like any other ERC-20 token. In return for staking your ETH, you receive a share of the rewards generated by the network. These rewards are paid out in the form of ETH. The protocol auto-converts the rewards into stETH and accumulates all staking rewards in the user’s account.

One of the key benefits of stETH is that it is liquid and can be traded on various decentralized exchanges, making it easy to buy and sell. Traditional staking, on the other hand, permanently locks up funds until a pre-determined period is over. Consequently, funds cannot be accessed during that time. With stETH, you can earn rewards while still having access to your funds at any time.

StETH has the extra benefit of providing a higher yield than traditional staking. This is because Lido's staking pool is designed to maximize rewards by delegating funds to a variety of validators across multiple networks. By diversifying its stake across different validators, Lido is able to reduce the risk of slashing, which is the penalty for validators who act maliciously or fail to follow the network's rules. This approach allows Lido to offer a higher yield on stETH compared to traditional staking, making it an attractive option for investors looking to earn passive income on their ETH holdings.

stETH tokens are created when users deposit their ETH into Lido’s smart contract. The contract then sends the ETH to one of Lido’s validators who stake it on behalf of the user. The user receives an equivalent amount of stETH tokens in return. The stETH tokens represent both the initial deposit and the rewards earned by staking.

The balance of stETH tokens increases over time as more ETH is generated through staking. The rewards are calculated based on the total amount of ETH staked on Lido and the current annual percentage rate (APR) of staking. The APR varies depending on how many validators are active and how much ETH is staked across the network.

Check out Lido — the leading Ethereum staking service provider.

Check out Rocket Pool (RPL) — a decentralized Ethereum staking pool.

Dive into the on-chain analytics of stETH.

Find out more about liquid staking derivatives on CoinMarketCap Alexandria.

Learn about liquid staking on CMC Glossary.