What is Lido Staked ETH (stETH)?

Lido is a liquid staking solution for the Ethereum blockchain, which allows stakers more flexibility as they can take out their funds whenever they want as an alternative to staking and locking up Ethereum directly. It is a community that builds liquid staking services for Ethereum, and with the backing of many industry-leading staking providers, the flexible staking option Lido provides is the reason it has grown popular in the crypto ecosystem. 

Lido stETH is a tokenized version of staked ether that is free from the limitations related to a lack of liquidity and can be transferred at any time. stETH combines the value of your initial staking deposit plus staking rewards, minus any slashing penalties, which accrue daily. And your stETH balance updates daily to reflect earned staking rewards, with the update taking place through a token supply rebase.

Users receive stETH in return when they stake their ETH with Lido, which represents their staked balance and can be used just as ETH- including spending and selling it. It can also be used as collateral for on-chain lending since it can be used in DeFi, and it allows holders to earn stake rewards in addition to rewards through integrated platforms.

As Ethereum transitioned to proof-of-stake (PoS) consensus, which requires users to stake their ETH in order to earn blockchain participation rewards. This ties up ETH and decreases its liquidity for investors. 

The token stETH is a token that represents staked ETH and enables the holders to use it as they would unstaked ETH.


Who are the founders of Lido Staked ETH (stETH)?

Staked ether (stETH) was introduced in 2020 in anticipation of Ethereum’s transition to the proof-of-stake (PoS) consensus mechanism.


What is Lido Staked ETH (stETH) used for?

stETH has so many significant uses as it is designed to replace staked ETH. Some of its uses it takes on are- stETH can be used in pool swap. It can be pooled with ETH in a liquidity pool, which enables users to exchange stETH for ETH at any time.

stETH tokens are used in yield farming just like ETH- meaning stETH can also be used as another way to earn yield just like users earn interest by staking ETH, which acts as double yield earning on one token.

It also allows users to wrap their stETH and other cryptocurrencies to use as a loan to others, just like some lending platforms. Lending in this way is double-wrapping a cryptocurrency, where the value of the lent token relies on the wrapped token, which depends on the underlying staked token’s value.


How is Lido Staked ETH (stETH) unique?

stETH is designed to function as a liquidity token, where you can accumulate your ETH into a smart contract on the Lido blockchain and receive an equal amount of stETH that can be traded, exchanged, borrowed against, or used for any other liquidity purposes.

The major uniqueness of Lido Staked ETH (stETH) is that it can be swapped with ETH for all liquidity purposes.

If you have stETH and an exchange that will trade it, you can swap your stETH for ETH. because you’ve been given stETH for the ETH you staked. So, you are trading your staked ETH and receiving unstaked ETH in return, which is another way the stETH provides liquidity to ETH owners.


How many Lido Staked ETH (stETH) are in circulation?

The supply of stETH tracks the number of ETH deposited into the Lido contract, and there is a circulating supply of 3,487,728 STETH coins; the maximum supply is not available.


How is the Lido Staked ETH (stETH) network secured?

Users’ staked ETH is distributed to the node operators (validators) on the Lido network and deposited into the Ethereum Beacon Chain to be validated. The funds are secured in a smart contract and validators have no access to them. 

The stETH tokens are minted when funds are deposited into the Lido staking pool smart contract, and they are burned when users withdraw their ETH tokens.


How do I buy Lido Staked ETH (stETH)? 

The Lido Staked ETH (stETH) token can be used for a wide range of purposes, like staking and payments.

Lido Staked ETH (stETH) tokens can be easily purchased with the following steps. 

* Open an account with the crypto trading platform of your choice.

* Transfer the specific amount of your fiat currency to your account.

* Wait for your deposit to be confirmed and buy Lido Staked (stETH) through your trading account.


Which Cryptocurrency Wallet Supports Lido Staked ETH (stETH)?

The PTPWallet platform supports many cryptocurrencies, with stETH soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.


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