Lido Finance

What is Lido Finance?

Lido Finance is a cutting-edge platform offering liquid staking solutions for Ethereum. With Lido, users can stake their ETH while maintaining liquidity through staking derivatives like stETH. This innovation allows users to earn rewards without locking up their assets. Lido is the name of a family of open-source peer-to-system software tools deployed and functioning on the Ethereum and Polygon blockchain networks. The software enables users to mint transferable utility tokens, which receive rewards linked to the related validation activities of writing data to the blockchain, while the tokens can be used in other on-chain activities.

Key Features of Lido

Lido offers an array of features designed to empower users in the DeFi ecosystem:

How Lido Works

When you stake with Lido, your ETH is pooled with others and staked to Ethereum validators. In return, you receive stETH, a tokenized representation of your stake that accrues rewards automatically. This system provides flexibility and liquidity for stakers. While each network works differently, generally, the Lido protocols batch user tokens to stake with validators and route the staking packages to network staking contracts. Users mint amounts of stTokens which correspond to the amount of tokens sent as stake and they receive staking rewards. When they unstake, they burn the stToken to initiate the network-specific withdrawal process to withdraw the balance of stake and rewards.

• StETH Tokens: Represent your staked ETH, growing with staking rewards.
• Validator Network: Ensures network security and performance.
• Secure Smart Contracts: Manage deposits and staking efficiently.

Why Choose Lido?

Here are some reasons why Lido Finance stands out:

1. Lido protocols give the user liquidity - the stTokens are on the execution layer, so they can be transferred. Users receive staking rewards from validation activities but can sell stTokens anytime they want to exit their staking position.
2. Participate in DeFi - users can use stTokens as building blocks in DeFi protocols at the same time as getting staking rewards from validating activities.
3. Lido protocols are governed by the Lido DAO - this means there is no central point for making decisions, and there is no one person who has access, control, or decision power to define what to do with users’ tokens. All decisions with respect to the protocol are voted up by the DAO, and all LDO holders may vote.
4. Uses time-proven node operators. Lido DAO works with experienced node operators, which decreases the likelihood of technical mistakes that could lead to slashing or penalties. Users supply the stake, and the node operators supply the know-how.

Get Started

Start staking ETH with Lido in just a few steps:

1. Visit Lido Finance.
2. Connect your wallet to the platform.
3. Deposit ETH and receive stETH instantly.

Staking

What need to know:

What is liquid staking?

1. Liquid staking protocols allow users to mint a transferable utility token that can be used in on-chain activities while their stake is locked-up while they continue to get staking rewards without maintaining any staking infrastructure. Thus it is said to be “liquid”..

What fee is applied by the protocol? What is it used for?

2. The protocol applies a 10% fee on staking rewards. This fee is split between node operators and the Lido DAO. That means the users receive 90% of the staking rewards returned by the networks.

How can I get stTokens?

3. Lido protocols let users stake native tokens (ETH, MATIC) from Ethereum and Polygon networks in a fully permissionless way. The protocols are deployed on public blockchains, so users do not need the website to access the smart contracts. However, for convenience, users can get started with information on the main page.

Where can I use stTokens?

4. stTokens can be used across a growing Ecosystem. Explore apps and services integrated with stTokens.