Lido is a staking protocol built on Ethereum that lets users stake their ETH and earn rewards. It is designed to address the liquidity, immovability, and accessibility challenges that come with staking on ETH 2.0. The protocol runs on Ethereum 2.0’s Beacon chain, enabling users to receive rewards without having to lock Ether in smart contracts or manage the staking infrastructure.

On Lido, the stETH token acts as the representation of staked ETH. Staking rewards, where applicable, are delivered in stETH as well. stETH is pegged 1:1 to ETH’s value and can be used in the same ways as ETH-including across DeFi platforms that run on the Ethereum network.

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

To obtain stETH, a user first deposits ETH into smart contracts within the Lido platform. Those contracts then stake the deposited ETH on ETH 2.0 using a setup that involves node operators. Lido groups deposits and stakes on Ethereum 2.0 in batches of 32 ETH, following network requirements. The number of stETH units issued aligns with the amount of Beacon chain Ether. A 10% fee is taken from the accumulated staking rewards-50% goes to node operators, while the remaining 50% supports the Lido Treasury and its operations.

The Lido staking system is overseen by the Lido DAO, which is structured on the Aragon framework. Governance token holders can participate in DAO activities such as voting on important metrics and settings-for instance, setting fees and selecting node operators and oracles, along with other core decisions. LDO is the token used to take part in DAO operations, and holding more LDO increases voting influence. The DAO is also responsible for routing accumulated service fees and deciding their use, which may include insurance, research and development, and protocol upgrades.

Lido relies on validators to help secure the protocol. Instead of depending on a single validator, users stake across many validators, which helps reduce related risks and helps protect against malicious attempts.

The Lido ecosystem also includes other Liquid Staking Protocols in addition to the Ethereum setup described here. For example, Lido Liquid Staking Protocols are available for Terra, Solana, Polygon, and Cosmos.

What can stETH be used for?

As noted above, stETH is intended to function the same way as ETH. Users can transfer it whenever they want and redeem it (convert it back into ETH) at their discretion.

Some examples of where stETH can be applied include:

Where can you buy stETH?

stETH can be traded on the CEXs and DEXs listed here. Among the most commonly used venues with the highest liquidity are Gate.io, Uniswap V2, and Bybit Swap. stETH’s price will change based on the specific exchange you use and broader market conditions. For current and historical stETH price information, please consult the price charts on this page.