Lido Staked ETH (stETH)

Lido Staked ETH pioneered liquid staking tokens, launching weeks after Ethereum's beacon chain went live in November 2020. The protocol allows users to unlock their ETH while accruing validator rewards in the form of rebasing. Depositors can stake as little as 0.01 ETH to Ethereum's proof-of-stake chain and receive a corresponding amount of stETH in return. Lido takes a 10% fee from the yield generated, which is split between node operators and the Lido DAO.

stETH holders can use the token like any other liquid ERC-20 token, allowing them to easily enter and exit positions by trading stETH for ETH or other digital assets. As the staked ether earns validator rewards, holders' stETH balance increases proportionate to the rewards accrued.

Lido is the by far the most dominant LST, holding nearly 75% market share in the sector. Holders of stETH are currently earning 4.9% APR, as of May 2023.

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