Lido Staked ETH (stETH): All You Need To Know
AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
After close to two years, Ethereum finally completed its transition in the Merge (previously referred to as Ethereum 2.0) in September 2022. Despite the transition, users were still unable to unstake their ETH. This would only be made possible during the Ethereum Shanghai upgrade that is expected to launch in March 2023. Of course, while the issue of illiquidity will be solved, staking on Ethereum is still a complex and expensive process. For instance, to help secure the Ethereum network, one has to lock at least 32 ETH up, which is quite a huge amount to leave lying around.
To provide a solution to the staking dilemma on Ethereum 2.0, Lido, a liquid staking solution, has built a platform that allows participants to lock any amount of ETH on the platform while retaining the liquidity of ETH through its token, stETH.
Let’s learn more.
What is stETH?
stETH is a liquid staking derivatives token used to represent staked Ether on Lido (LDO) that allows the token holder to participate in various ecosystems in the DeFi niche while still accruing staking rewards from the Ethereum Beacon Chain.