Lido is a flexible staking platform built on the ETH blockchain and supported by many of the best staking service providers in the business. Its primary mission is to counter common hurdles in ETH staking, such as illiquidity, immovability, and inaccessibility. By opting to stake with Lido, users gain complete control over their staked ETH, with the flexibility to stake any quantity and unstake at any given moment without worrying over extended lock-up periods.
Upon staking with Lido, users are awarded staked ETH (stETH), which symbolises the combined value of the original deposit and daily staking rewards. The stETH balance augments daily as new rewards are added and can be leveraged similarly to regular ETH to earn yield and lending benefits.
stETH has numerous practical applications, including liquidity pools, lending, derivatives and insurance derivatives, and yield farming. Users can pool their stETH with ETH in a pool of liquidity, exchange their stETH for ETH at their convenience, and use it as an alternate pathway to earn yields. Token holders can deposit their stETH on various platforms, thereby earning profits that effectively double the yield earnings on a single token.
Lido is a straightforward and effective ETH staking platform that returns an appealing 8% APR on staked tokens. When compared to other staking systems, Lido’s ability to unstake at any moment without repercussions stands out as a distinct benefit. To help you stake your ETH with Lido, here is a simplified, step-by-step guide:
- Access Lido’s Staking Platform
- Connect Your Digital Wallet
- Determine your staking amount
- Confirm your staking transaction using your connected wallet. Follow the instructions provided by your wallet to approve the staking operation.
- Receive your stETH tokens.
Despite Lido’s rise to prominence as a top liquidity staking protocol in the cryptocurrency industry, there are a few caveats to keep in mind before you start staking. Among them are the risks associated with the DAO itself, market volatility, and government oversight. Lido’s introduction of stETH was a major step towards furthering the decentralisation and security of ETH after the Merge. Because of the low entrance hurdle, individuals from different socioeconomic backgrounds may simply take part, making staking ETH more widely available.