Lido Staked Ether (stETH) currently has a price of $2.9K and is up 0.40% over the last 24 hours. The cryptocurrency is ranked 7 with a market cap of $28.9B. Over the last 24 hours, it saw $123.9M of trading volume. The token has a circulating supply of 9.8M tokens out of a total supply of 9.8M tokens.
Lido Staked Ether (stETH) is a decentralized crypto asset that represents staked ether on the Ethereum network. It allows users to earn staking rewards on their ETH holdings while maintaining liquidity and accessibility.
Lido Staked Ether (stETH) is a feature in the cryptocurrency world that enables users to earn staking rewards on their Ethereum tokens without actively participating in the staking process.
Staking is a method used by blockchain networks to secure and validate transactions, requiring users to hold tokens in a staking mechanism. However, this often involves locking up tokens for a specific period, which can limit flexibility. Lido Staked Ether solves this problem by allowing users to deposit their ether and receive stETH tokens, representing their staked ether.
One advantage of stETH is that users can earn staking rewards without the need to participate actively. Lido takes care of the technical complexities of staking, enabling users to hold, trade, or use their stETH tokens while still earning passive income. In addition, stETH offers liquidity that traditional staked ether lacks. It can be freely traded on decentralized exchanges, providing users with the ability to convert their staked ether into other cryptocurrencies or fiat currencies. This flexibility in trading gives users greater control over their finances.
To maintain liquidity, Lido has implemented a way to convert stETH back to ETH. Users have the option to burn their stETH tokens, which triggers a smart contract to retrieve the equivalent amount of ETH from the staking pool. This ensures that there is always a direct correlation between the supply of stETH and the amount of ETH held in the pool. The ability to easily convert stETH back to ETH provides users with a convenient way to get involved in Ethereum staking.
Lido Staked Ether offers token holders the opportunity to generate yield. It represents a share in the total amount of ether staked on the Ethereum blockchain.
To participate in staking, users lock up their ETH as collateral to support the network and validate transactions. By holding stETH, investors can passively earn rewards in the form of additional ETH through the staking process.
This is made possible by pooling ETH into Lido, which is then collectively staked on the Ethereum 2.0 network. The rewards received by validators are distributed proportionally to stETH holders.
Lido Staked Ether (stETH) is a cryptocurrency that has decentralized governance, where decision-making power is distributed to its token holders instead of a central authority. This unique feature allows stETH holders to influence the project's development and direction, promoting transparency and inclusivity. By involving a diverse range of perspectives, decentralized governance reduces the risk of concentrated power.
Launched in late 2020, Lido Staked Ether (stETH) was founded by Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish. Lomashuk is the founder of P2P Validator, a provider of institutional-grade staking systems, while Shapovalov is CTO. Fish is known online by his pseudonym Cobie and runs a podcast called UpOnly.
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