Lido: an ETH 2.0 liquid staking solution

The roll-out of the beacon chain in December 2020 initiated Ethereum’s gradual transition to a Proof-of-Stake consensus mechanism under Ethereum 2.0. Users can stake Ether to become a validator of the network. Validators are responsible for creating new blocks when they are randomly chosen and attesting blocks created by other validators. They are economically rewarded with inflationary ETH for securing the network, which creates an opportunity for ETH holders to earn passive income.

For an in-depth analysis of the utility of the beacon chain, see this research piece.