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- 1 Crypto staking is the process of winning rewards by holding particular cryptocurrencies.
- 2 Lido is one of the most efficient staking platforms that allow users to stake digital currencies.
Lido, a third-party staking platform is ready to let users stake tokens and earn stToken as rewards in return. The platform was launched by Jordan Fish, Konstantin Lomashuk, and Vasiliy Shapovalov in October 2020. Ethereum (ETH), Solana (SOL), and Polygon (MATIC) are among the primary supported cryptocurrencies on the platform, with staked tokens valued at $15 billion and total rewards amounting to $716 million. Furthermore, the platform has around 372,323 stakers till date who have earned stTokens as rewards.
Let us explore how to stake ETH on the Lido platform.
How to Stake ETH with LIDO?
ETH staking is simply a process of depositing ETH to validators to safeguard the Ethereum network and earn ETH in rewards.
To stake ETH on the Lido platform, users must visit the Lido website and connect to a wallet such as MetaMask. Connecting the wallet will show all the balances including received stETH, exchange rate, maximum transaction cost, and reward fee.
stETH is a transferable utility token showing the share of the total ETH that is staked through the platform.
The next step is staking which simply requires entering the amount of ETH the user wants to stake. After entering the amount of ETH and selecting stake, your wallet will contain stETH which represents the staked deposit. The stETH will automatically transfer to the connected wallet and increase daily with the daily staking rewards that are received.
The maximum transaction cost is $4.97 and a 10% fee from the rewards goes for the improvement of the Lido services. That is all you need to know about how to stake and earn stETH. The next question that arises is how to use or unstake stETH.
The received stETH can be used as collateral for lending, and for yield farming using platforms like Coinbase, CoinGecko, UniSwap, etc. Yield farming is a process of locking reward tokens for a specific time period to earn rewards using DeFi platforms such as Curve and SushiSwap.
To use the stETH, the user simply must claim to unstake stETH to get ETH which can be received within 1 to 5 days. Furthermore, to secure the Ethereum network, users were initially required to lock at least 32 ETH but with the Ethereum Shanghai upgrade, users are free to lock any amount of ETH on the platform.
Benefits and Risks of Staking with LIDO
The Lido platform offers staking of ETH without eliminating the ability to trade, stake, or unstake the tokens. Great rewards of small deposits, fewer chances of losing staked funds, and enhanced alternatives for exchange staking, make the platform quite beneficial in the crypto landscape.
When it comes to drawbacks with the platform, stETH fluctuations, and slashing risks are some of the major risks associated with the staking platform.
Conclusion
Lido is a staking platform allowing users to stake tokens and earn rewards in return. The platform supports different digital assets for staking including ETH, SOL, and MATIC. Connecting a wallet with the platform and selecting the stake options is a simple process to stake the digital asset and earn rewards. Users are also permitted to unstake the stTokens by making a claim which can be further used for lending.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
