The Lido Ethereum Liquid Staking Protocol, built on Ethereum 2.0’s Beacon chain, allows their users to earn staking rewards on the Beacon chain without locking Ether or maintaining staking infrastructure.
Users can deposit Ether to the Lido Coin smart contract and receive stETH tokens in return. The smart contract then stakes tokens with the DAO-picked node operators. Users’ deposited funds are pooled by the DAO, node operators never have direct access to the users’ assets.
Unlike staked ether, the stETH token is free from the limitations associated with a lack of liquidity and can be transferred at any time. The stETH token balance corresponds to the amount of Beacon chain Ether that the holder could withdraw if state transitions were enabled right now in the Ethereum 2.0 network.
Stake any amount of ETH and earn daily staking rewards. Put your staked ETH to work across DeFi to compound your yield.
Stake Luna to earn staking rewards with stLuna or bLuna. Maintain full control of your staked tokens and use them across Terra DeFi applications.
Stake your Solana and receive stSOL. Use your stSOL to earn additional yields and put your staked SOL to work across the Solana ecosystem.
Lido Coin Stake your Kusama and receive stKSM. Yield daily staking rewards and put your stKSM to DeFi to work across the Kusama and Moonriver ecosystems.
Stake MATIC tokens to support network decentralisation and watch your stMATIC value grow. Staking does not mean locking anymore.
How Lido works
Lido lets users stake their assets for daily staking rewards. User can stake any amount of tokens – no minimum.
When staking Lido you mint staked tokens which are pegged 1:1 to your initial stake. Your staked tokens can be used across the DeFi ecosystem to compound your yield.
Lido lets you use your staked assets to gain yield on top of yield. Use your tokens (which earn daily staking rewards) as collateral, for lending, yield farming and more.
Lido Coin DAO is a community that builds liquid staking services and governs the direction of Lido. The number of DAO participants is growing daily with contributors working together to build the future of Lido.
How does stETH work?
When users stake their ETH with Lido they receive stETH in return representing their staked balance. stETH can be sold on exchanges – to effectively unstake – or redeemed for Ethereum once enabled.
As a user’s staked ETH generates staking rewards from ETH 2.0, the user’s ETH balance on the beacon chain will increase. stETH balances will update correspondingly once per day allowing you to access on ETH 1.0 the value of your staking rewards received on ETH 2.0.
Users can use stETH in all of the same ways that they can use ETH: sell it, spend it and, since it is compatible to be used in DeFi, use it as collateral for on-chain lending. When transactions are enabled on ETH 2.0, users can also redeem stETH for ETH.
The Lido Coin DAO is a Decentralized Autonomous Organization that manages the liquid staking protocol by deciding on key parameters (e.g., setting fees, assigning node operators and oracles, etc.) through the voting power of governance token (DPG) holders.
Also, the DAO will accumulate service fees and spend them on insurance, research, development, and protocol upgrades. Initial DAO members will take part in the threshold signature for Ethereum 2.0 by making BLS threshold signatures.
Since Withdrawals Manager Stub contract has been deployed, new validators withdrawal credentials point to Withdrawals Manager Stub contract controlled by Lido DAO. Validators before that deployment have withdrawal credentials pointing to mulsig wallet.
The Lido DAO is an Aragon organization. Since Aragon provides a full end-to-end framework to build DAOs, we use its standard tools. The protocol smart contracts extend AragonApp base contract and can be managed by the DAO.
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