Contents:

What is stETH (Lido staked ETH)?

Written by
Pavel Sazanov
Updated on
November 6, 2023
6 min read

There are numerous blockchain-based projects out there that aim to take a specific aspect of one blockchain and put it to an additional level of utility. In other words, these projects get built as a means of enhancing a specific functionality within a given coin or token.

One such project is stETH, which is essentially a representation of Ether (ETH) within Lido and combines the value of the initial deposit with the staking rewards. Let's go through everything you need to know surrounding it.

Introduction to stETH (Lido staked ETH) 

Lido is essentially a staking solution built for the Ethereum network, which is backed by staking providers that are leaders within the industry. It essentially makes staked ETH liquid and enables participation from users with any amount of ETH, lowering the barrier of entry.

Homepage of Lido finance showcasing an Ether image.
Homepage of Lido finance showcasing an Ether image.

Additionally, stETH is just a tokenized form of Ether (ETH), which is native to Lido.

History of stETH (Lido staked ETH)

Lido created the stETH cryptocurrency as a means to enable smaller investors the ability to get into skating rewards without the need to fill the 32 ETH minimum requirement. 

This essentially creates a market that is far more liquid and enables anyone to reinvest their Ether as stETH, which is otherwise locked up in liquid staking.

stETH is a representation of user-staked Ether (ETH) in Lido and combines the value of the initial deposit as well as the staking rewards. stETH token balances are pegged 1:1 to the Ether (ETH0 that is staked by Lido, and the balances are updated to reflect earnings and rewards. 

stETH (Lido staked ETH) Guide: Everything You Need to Know

stETH is a token that represents staked Ether (ETH) in Lido.

These tokens get minted upon deposit and get burned when redeemed. stETH token balances get issued 1:1 to the Ether that is staked by Lido. These balances are then updated when the oracle reports a change in the total stake.

stETH can be used as Ether, or in other words, it can enable users to earn ETH 2.0 staking rewards and also benefit from yields across Decentralized Finance (DeFi) products. Because that stETH is designed to take the place of ETH, it has numerous use cases. However, each one carries a specific level of risk associated with it.

stETH can be pooled with ETH within a liquidity pool, which will allow anyone to swap the stETH for ETH when they need to. This is known as a pool swap and enables anyone to unstake their ETH.

Then there’s lending. Numerous platforms enable users to wrap their stETH as well as other cryptocurrencies and then use it as a loan to others. 

Lending this way is double-wrapping a cryptocurrency. The value of the lent cryptocurrency is dependent on the coin that is being wrapped, which is dependent on the underlying staked coin’s value.

Additionally, there's also the use-case for yield farming. Users can pick stETH to use for earning yield, where they can deposit stETH on a platform and get more earnings through the cryptocurrency.

stETH Tokens (Lido staked ETH) Price Movement

As of February 4, 2022, m stETH has a value of $1,674.05.

In terms of the 24-hour performance of the cryptocurrency, its low point was at $1,644.96, while its high end was at $1,685.53.

When we go over the value of the cryptocurrency in the last seven days, the low point was at $1,548.26, with the high point at $1,695.74.

As for the all-time high, the cryptocurrency reached a value of $4,829.57 on November 10, 2021. Its all-time low was on December 22, 202, at $482.90.

While the value of the cryptocurrency has seen an increase throughout the past week, it is important to note that the future value of any cryptocurrency cannot be predicted with 100% accuracy.

The Current State of stETH (Lido staked ETH) 

Lido's stETH enables users the ability to earn rewards for holding the cryptocurrencies in their wallet or putting them to use across DeFi products.

They are fully liquid, which means that they can be traded, sold, exchanged, invested, or utilized in any way, unlike locked Ether (ETH).

Future Potential of stETH (Lido staked ETH) and Staking Rewards

stETH represents a solid alternative for those who want to engage in Ethereum staking without needing to meet the 32 ETH minimum. However, the cryptocurrency goes much further by enabling them access to a wide array of DeFi services and products.

In the future, we might see Lido increase the utility and use cases of the cryptocurrency, or we might even see it get listed on far more exchanges or get usage across many other DeFi products. 

Trading stETH (Lido staked ETH) With Atomic Wallet

The Atomic Wallet is essentially a non-custodial, decentralized wallet. As such, anyone can own their backup phrase and even private keys whilst also maintaining full control over their cryptocurrencies.

Atomic Wallet that features staked Ether functionality and stETH tokens support.

Anyone curious about investing or trading with the stETH (Lido staked ETH) cryptocurrency can do so by using Atomic Wallet. Additionally, they can manage stETH alongside XRP, Litecoin, and XLM, as well as over 300 different coins and tokens. 

The wallet is accessible on both desktop devices or even mobile devices. By downloading the app and making an account, users can instantly begin buying or swapping straight from the wallet.

Moving Forward With stETH (Lido staked ETH) 

stETH cryptocurrencies can continue to be staked even if users want to use the cryptocurrency, and as such, it can be a handy token for staking and for usage within the broader Lido platform. 

All of these aspects make stETH stand out, and as such, it is a solid project within the blockchain space.

Frequently Asked Questions (FAQs)

What Can I Use stETH for?

stETH can get used within liquidity pools for lending, yield faring,, and even alternative use cases such as derivatives.

Can You Redeem stETH for ETH?

stETH can indeed be added with ETh as well as other assets within liquidity pools. This allows users to exchange stETH for ETH as needed. 

Who Created stETH Crypto?

Lido created stETH as a means of enabling investors to get staking rewards without the 32 ETH minimum.

What’s Important to Track in the stETH Project in the Future?

The project needs to gain support as well as increased utility for a lot more use cases, dApps, and within the DeFi space.

Resources

Lido Website

For the ultimate source of information visit the Lido website.

Stake Ether with Lido

Learn how staking Ether with Lido works on the official website

Lido Reddit

Join the Lido Subreddit to discuss the currency with the rest of the community.

Lido Twitter

Follow Lido on Twitter to keep up with the latest updates.

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