{"id":30367,"date":"2022-06-12T01:27:11","date_gmt":"2022-06-12T08:27:11","guid":{"rendered":"https:\/\/financer.com\/crypto\/lido-staked-ether\/"},"modified":"2023-11-06T17:08:48","modified_gmt":"2023-11-07T01:08:48","slug":"lido-staked-ether","status":"publish","type":"crypto","link":"https:\/\/financer.com\/crypto\/lido-staked-ether\/","title":{"rendered":"Lido Staked Ether"},"content":{"rendered":"\n\n\n

What is Lido Staked Ether?<\/strong><\/h2>\n\n\n\n
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Lido Staked Ether (stETH) is a derivative of Ethereum<\/a>. 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. <\/p>\n\n\n\n

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? <\/p>\n\n\n\n

That’s where Lido Staked Ether comes in. It allows those who can\u2019t afford to participate in Ethereum staking to enjoy the rewards of staking without putting up that much.<\/p>\n\n\n\n

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.<\/p>\n\n\n

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Lido Staked Ether is a derivative<\/em> because it is derived from another product. In this case, Ethereum. So you can think of Lido Staked Ether as an investment product created from Ethereum.\u00a0<\/span><\/p><\/div>\n\n\n

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.\u00a0<\/p>\n\n\n\n

What Determines the Price of Lido Staked Ether (stETH)?<\/strong><\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

Hence the price action of stETH mirrors that of ETH.\u00a0<\/p>\n\n\n\n

Lido Staked Ether maintains its price dependency with ETH in three ways:<\/p>\n\n\n\n