Lido Staked Ether ($stETH) is a token that represents your staked ether in Lido, combining the value of the initial deposit and staking rewards. $stETH tokens are minted upon deposit and burned when redeemed. $stETH token balances are pegged 1:1 to the ethers that are staked by Lido and the token’s balances are updated daily to reflect earnings and rewards. $stETH tokens can be used as one would use ether, allowing you to earn ETH 2.0 staking rewards whilst benefiting from e.g. yields across decentralized finance products. Lido Staked Ether ($stETH) is based on multiple networks, including Ethereum, Terra, Solana, Kusama, and Polygon.
What is Lido?
The Lido is an Ethereum Liquid Staking Protocol, built on Ethereum 2.0's Beacon chain, allowing its users to earn staking rewards on the Beacon chain without locking Ether or maintaining staking infrastructure. Users can deposit Ether to the Lido smart contract and receive $stETH tokens in return. The smart contract then stakes tokens with the DAO-picked node operators.