Lido Staked Ether

Lido Staked Ether Price Data

The live Lido Staked Ether price today is $2,986.50 with a 24-hour trading volume of $173,732,621.

We update our STETH to USD price in real-time. The price of Lido Staked Ether has changed -0.45% in the last 24 hours.

Currently, Lido Staked Ether is the #7 largest cryptocurrency by market cap, with a live market cap of $28,087,170,989.00. It has a circulating supply of 9,371,865 STETH coins but the maximum supply is not available.

See where to buy Lido Staked Ether or use our Lido Staked Ether Profit Calculator to calculate and track the performance of your investment.

What is Lido Staked Ether?

Lido Staked Ether (stETH) is a derivative of Ethereum. What makes it unique and why is it so popular? It offers an alternative way to stake ETH that lowers the financial threshold for participating in Ethereum Staking.

Normally, you would need 32ETH to be a validator on Ethereum – which is a good deal of money. But what if you don’t have 32ETH to stake but still want to participate?

That’s where Lido Staked Ether comes in. It allows those who can’t afford to participate in Ethereum staking to enjoy the rewards of staking without putting up that much.

What’s more, Lido Staked ETH makes staking on Ethereum more flexible. In traditional ETH staking, the assets are locked and can’t be used for any other purpose.

As the name suggests, Lido Staked Ether was created by the Lido protocol. Lido Staked Ether has become immensely popular in the crypto community accounting for a large chunk of staking that happens on Ethereum. 

What Determines the Price of Lido Staked Ether (stETH)?

stETH was created to maintain a 1:1 peg with ETH. This means that stETH tokens can be redeemable for ETH 1:1. In other words, the price of stETH is tied to the price of ETH.

Hence the price action of stETH mirrors that of ETH. 

Lido Staked Ether maintains its price dependency with ETH in three ways:

• Through arbitrage: if the price of stETH falls below that of ETH, traders buy stETH as they can exchange it for real ETH in the future. This buying activity jacks up the price of stETH and levels it with ETH.
• By delivering liquidity: the Lido DAO protocol gives additional incentives and rewards to people who add liquidity to the stETH and ETH crypto pairs.
• Through organic demand: stETH popularity has made it accepted as suitable collateral for crypto loans.

How Lido Staked Ether Works

stETH was created in October 2020 shortly before Ethereum started the process of switching to the PoS consensus protocol.

The process of securing stETH tokens starts with depositing your ETH via smart contract on the Lido blockchain. This awards you with an equal number of stETH tokens that you can trade, exchange, and use as collateral as well as for other liquidity purposes.

Two things make this process possible:  oracles and rebase.

As long as your staked ETH accumulates staking gains, your balance will be updated accordingly every 24 hours.

Lido is a community-managed platform and its structure consists of:

• A Staking pool: with node operators, oracles, and prizes
• An Insurance fund: that stores staked ETH (sthETH) and
• A DAO: Decentralised Autonomous Organisation

According to data from Nansen, Lido Staked Ethereum accounts for 31% of total ETH currently staked and is the most used way to stake the Ethereum.

What is Lido Staked Ether used for?

Since stETH represents staked Ethereum, the derivative token can be used as a substitute for ETH and serve any purpose related to its use. More, specifically, stETH can be used for the following: 

• Getting Staking Rewards: users pledging their ETH to validate transactions on the Ethereum chain via stETH receive the interest accruing on them every 24 hours.
  Through Lido Staked Ether, this interest is currently 4.5% per annum with Lido collecting 10% of it.
• Adding it to Liquidity Pool: The second most popular way to use stETH is by adding it to a liquid ETH/stETH pool.
• Collateral for Loans: You can also lend staked ETH to others, or use it as collateral for crypto loans on platforms like Aave.

Because stETH accumulates staking rewards in real-time and changes value, it is incompatible with some DeFi protocols like Uniswap.

Lido solved this problem by creating a second kind of staked ETH – wstETH.

wstETH stands for wrapped-staked-ETH. It allows your staked ETH to continue accumulating staking interest as well as serve as collateral in decentralized exchanges(like Uniswap).

Who are the Founders of Lido Staked Ether?

Staked ETH was created by Lido Finance.

The protocol was founded in October 2020 by Konstantin Lomashuk, Vasily Shapavalov, and Jordan Fish.

Konstantin has a Ph.D. in finance and is the founder of P2P Validator, Vasily has a BSc in mathematics and 10 years of experience as a software engineer before moving into crypto in 2019.

In 2020, Basil became Chief Technology Officer of P2P Validator and one of his first tasks was to create a staking solution for Ethereum’s upcoming Beacon chain. This solution later evolved into Lido.

Jordan Fish (better known as @Cobie in crypto circles) is a computer science graduate. Cryptocurrencies are more of a hobby and passion for him. According to Jordan, he invested $500 in Bitcoin at the very beginning and hasn’t invested ever since.

For a short period, Jordan was CEO of P2P Validator and was the one who announced the creation of Lido in a Medium post.

Besides Ethereum, other cryptos like Polygon (MATIC), Solana (SOL), Polkadot (DOT), and Kusama (KSM) can also be staked with Lido.

What makes Lido Staked Ether unique?

Lido Staked ETH offers an alternative way to stake ETH that lowers the financial threshold for participating in Ethereum Staking.

In a normal ETH staking, the assets are locked and can’t be used for any other purpose.

stETH removes this barrier.

What’s more, stETH extends access to Ethereum’s staking to a larger number of people. 

Since not a lot of people can afford to stake 32ETH on the Ethereum chain, stETH allows people to participate in Ethereum staking without putting up that much. 

With stETH, you can participate in ETH staking and receive the corresponding staking rewards.

How is Lido Staked Ether secured?

How does Lido Finance ensure the security of staked Ether? 

Here are some security measures listed by the Lido team:

• Open source and constant code review.
• A committee of specially selected and proven validators to minimize staking risk.
• Use of a non-custodial stevedoring service to remove counterparty risk.
• Using DAO for management decision-making and risk management

AuthorAbraham Jimoh

Abraham is a savvy financial analyst, trader, and writer, leveraging a Google certification in data analytics alongside a Bachelor's degree in Economics to navigate and excel in the dynamic landscape of finance. Abraham boasts exceptional analytical skills and market research prowess, evidenced by a remarkable three-month winning streak trading bitcoin futures without a single loss, earning him recognition on Binance USD-M crypto futures' top 200 weekly charts. Currently serving as the Assisting Country Manager for Financer US, Abraham combines practical expertise with a passion for demystifying finance.

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