Stake Ether

Lido is the name of a family of open-source peer-to-system software tools deployed and functioning on the Ethereum and Polygon blockchain networks. The software enables users to mint transferable utility tokens, which receive rewards linked to the related validation activities of writing data to the blockchain, while the tokens can be used in other on-chain activities.

While each network works differently, generally, the Lido protocols batch user tokens to stake with validators and route the staking packages to network staking contracts. Users mint amounts of stTokens which correspond to the amount of tokens sent as stake and they receive staking rewards. When they unstake, they burn the stToken to initiate the network-specific withdrawal process to withdraw the balance of stake and rewards.

• Open-sourcing & continuous review of all code.
• Committee of elected, best-in-class validators to minimise staking risk.
• Use of non-custodial staking service to eliminate counterparty risk.
• Use of DAO for governance decisions & to manage risk factors.
• Lido has been audited by Certora, StateMind, Hexens, ChainSecurity, Oxorio, MixBytes, SigmaPrime, Quantstamp. Lido audits can be found in more detail here.

Usually when staking ETH you choose only one validator. In the case of Lido you stake across many validators, minimising your staking risk.

There exist a number of potential risks when staking using liquid staking protocols.

• Smart contract security

  There is an inherent risk that Lido could contain a smart contract vulnerability or bug. The Lido code is open-sourced, audited and covered by an extensive bug bounty program to minimise this risk. To mitigate smart contract risks, all of the core Lido contracts are audited. Audit reports can be found here. Besides, Lido is covered with a massive Immunefi bug bounty program.

• Slashing risk

  Validators risk staking penalties, with up to 100% of staked funds at risk if validators fail. To minimise this risk, Lido stakes across multiple professional and reputable node operators with heterogeneous setups, with additional mitigation in the form of self-coverage.

• stToken price risk

  Users risk an exchange price of stTokens which is lower than inherent value due to withdrawal restrictions on Lido, making arbitrage and risk-free market-making impossible. The Lido DAO is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist and, as such, it is our duty to communicate them.

The Lido DAO is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist.

Lido staking APR for Ethereum = Protocol APR * (1 - Protocol fee)

Protocol APR — the overall Consensus Layer (CL) and Execution Layer (EL) rewards received by Lido validators to total pooled ETH estimated as the moving average of the last seven days.

Protocol fee — Lido applies a 10% fee on staking rewards that are split between node operators and the DAO Treasury.

More about Lido staking APR for Ethereum you could find on the Ethereum landing page and in our Docs.

The protocol applies a 10% fee on staking rewards. This fee is split between node operators and the Lido DAO. That means the users receive 90% of the staking rewards returned by the networks.

stETH is a transferable rebasing utility token representing a share of the total ETH staked through the protocol, which consists of user deposits and staking rewards. Because stETH rebases daily, it communicates the position of the share daily.

You can get stETH many ways, including interacting with the smart contract directly. Yet, it is much easier to use a Lido Ethereum staking widget, stake your tokens directly from Ledger Ethereum wallet, or in other DEX Lido integrations.

You can use your stETH as collateral, for lending, and more.

• Idle Finance
• Nexus Mutual
• Ribbon Finance
• Chainproof

Check with providers for coverage and insurer conditions.

You can use our Withdrawals Request and Claim tabs to unstake stETH and receive ETH at a 1:1 ratio. Also, you can exchange stETH on DEX Lido integrations.