Stake Ether

Lido is the name of a family of open-source peer-to-system software tools deployed and functioning on the Ethereum blockchain network. The software enables users to mint transferable utility tokens, which receive rewards linked to the related validation activities of writing data to the blockchain, while the tokens can be used in other on-chain activities.

While each network works differently, generally, the Lido protocols batch user tokens to stake with validators and route the staking packages to network staking contracts. Users mint amounts of stTokens which correspond to the amount of tokens sent as stake and they receive staking rewards. When they unstake, they burn the stToken to initiate the network-specific withdrawal process to withdraw the balance of stake and rewards.

Lido staking APR for Ethereum reflects the annualized yield earned by validators on the Ethereum network. Staking rewards come from Ethereum protocol inflation, execution layer fees (priority fees), and MEV (Maximal Extractable Value) boosts. The APR fluctuates dynamically based on network conditions, total staked ETH, and gas prices.

Lido applies a 10% fee on staking rewards. This fee is split between node operators, the Lido DAO Treasury, and coverage funds. It is used to maintain infrastructure, compensate node operators for hardware and operational costs, fund security audits, and support protocol development and risk mitigations.

stETH (Lido Staked ETH) is a rebalancing liquid staking token that represents your staked Ethereum plus daily accrued staking rewards. It maintains a 1:1 ratio with ETH deposited into Lido and allows holders to participate in DeFi activities while continuing to earn staking rewards.

You can get stETH by staking your native ETH directly through the Lido interface, or by swapping ETH/wstETH for stETH on decentralized exchanges such as Uniswap, Curve, or Balancer.

stETH can be used across the DeFi ecosystem. You can provide liquidity on DEXs (like Curve or Uniswap), use it as collateral on lending platforms (like Aave or MakerDAO), wrap it into non-rebasing wstETH for cross-chain or Layer 2 protocols, or hold it in your wallet to passively earn daily rewards.

You can purchase slashing and smart contract insurance coverage for stETH through third-party decentralized cover providers such as Nexus Mutual, Unslashed Finance, or OpenCover, protecting against potential smart contract vulnerabilities or validator slashing risks.