There are several good reasons to look at Lido as the ideal crypto staking platform. Operating since its launch in December 2020, the platform is a leader in the liquid staking sub-sector.
Lido is a non-custodial crypto staking platform that offers an easy route into crypto staking. Among its many benefits is allowing users to start earning from crypto staking without much experience or any infrastructure. You can stake any amount of several different cryptos on Lido.
In this article, we take a deep dive into Lido and what it has to offer.
We also share a few easy steps to help you stake on the liquid staking platform.
Lido is a liquid staking platform running on several blockchains including the Ethereum 2.0 Beacon blockchain, Solana, Kusama, Polygon, and Polkadot blockchains.
The platform allows users to stake tokens without locking them up or maintaining expensive staking infrastructure.
Lido makes it easier for any ETH holder to participate in Ethereum operations. Lido makes Ethereum more inclusive and decentralized. ETH holders can stake as little as a fraction of an ETH on Ethereum 2.0 and earn passive income.
Users can also unstake their tokens at any time with no consequences.
A plus for Lido is that its derivatives are liquid, meaning you can use them on various Defi applications while earning from them through crypto staking.
When you send your ether into the Lido liquid staking smart contract you receive a corresponding amount of staked ether or stETH. These tokens represent your initial crypto deposit and daily staking rewards. StETH tokens are tokenized versions of staked ETH and they are pegged 1:1.
StETH tokens are a liquid alternative to staked ETH. They can be transferred, traded, or used in DeFi applications. They can be used like regular ETH to earn lending rewards and yields.
StETH tokens are minted immediately after you deposit funds on Lido and burnt when they are redeemed.
stETH charts and info (CoinGecko)
LDO tokens are Lido governance tokens. They enable holders to vote in the Lido DAO. LDO voting weight is proportional to the amount of LDO a voter stakes in the voting contract. Each LDO token holds the weight of one vote, meaning the more LDO tokens a holder locks in a voting contract the greater their decision-making power.
It is worth noting that the LDO voting mechanism enables the Lido DAO make changes to the governance structure without affecting other functions on the platform.
LDO charts and info (CoinGecko)
Staking on Lido is quick and easy. This walk-though uses ETH as an example but obviously you can choose other cryptos.