What Is Lido Staked ETH (stETH)?
stETH is a derivative token of ETH (Ethereum) that represents staked ETH through the Lido platform. Lido is a decentralized protocol enabling users to stake ETH and participate in Ethereum’s proof-of-stake (PoS) consensus mechanism.
Key Features of stETH:
- Liquid Staking Solution: Unlike traditional staking, which locks up ETH indefinitely, stETH provides liquidity by minting tradable tokens equivalent to staked ETH.
- No Minimum Stake: Ethereum’s native staking requires 32 ETH, but Lido allows staking any amount.
- Slashing Risk Mitigation: Lido distributes risks across professional validators, reducing individual exposure to penalties (slashing) for downtime or misbehavior.
How Does stETH Work?
- Users deposit ETH into Lido’s smart contracts.
- Lido stakes the ETH with its network of validators.
- Users receive stETH tokens at a 1:1 ratio, which accrue staking rewards daily.
- stETH can be traded, lent, or used in DeFi protocols while earning rewards.
👉 Discover how stETH enhances Ethereum staking liquidity
Founders and Backing
Lido is developed by a DAO (Decentralized Autonomous Organization) and supported by leading blockchain investors, including Paradigm and Coinbase Ventures.
stETH Tokenomics
- Circulating Supply: Updated in real-time on CoinMarketCap.
- Rewards: stETH holders earn Ethereum staking rewards, reflected in the token’s balance.
Where to Buy stETH
stETH is available on major exchanges like:
- Binance
- Coinbase
- OKX
👉 Trade stETH on OKX’s low-fee platform
FAQ
Does stETH maintain a 1:1 peg with ETH?
Yes, stETH is designed to track ETH’s value plus accrued staking rewards.
Can I unstake stETH anytime?
After Ethereum’s Shapella upgrade, unstaking became possible via Lido’s withdrawal process.
Is stETH safe?
Lido is audited and widely used, but smart contract risks exist. Always DYOR (Do Your Own Research).
Related Resources
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