Lido is a platform that develops staking protocols that are compatible with the Solana, Ethereum 2.0 and Terra blockchains.
Lido 7 key point overview:
- ✔️What is Staking
- ✔️What is Lido
- ✔️Using Lido to stake Ether
- The stETH Coin
- How to buy
- Top 3 wallets
What is Staking
👉 The process of staking cryptocurrencies involves buyers who become an integral part of a network's security infrastructure by holding specific tokens.
👉 In return for being an active validating node for the network, token holders are rewarded or compensated accordingly.
👉 Essentially, staking is similar to loaning funds and earning interest with traditional fiat money.
👉 But instead, the token holder loans digital coins to a network and earns more coins in return or interest on a daily/monthly/anual basis.
What is Lido
👉 By staking with Lido, users do not have to sacrifice the ability to trade, use or “unstake” tokens, and the staking protocol is non-custodial – meaning that users maintain ownership and control of their assets.
👉 Lido has been used to stake a total value of nearly $10 billion+, with 47,000+ stakers currently on the network and a total reward payout of approximately $162 million+.
Using Lido to stake Ether
👉 Lido currently holds the biggest staking pool for Ether and also lets users stake Ether to earn daily rewards.
👉 There is no minimum amount that must be staked to benefit from doing so and you can grow your balance and increase your rewards using Defi apps, such as Curve, Yearn, Sushi, 1inch.
The stETH Coin
👉 The stETH coin is the tokenised form of staked Ether, which is native to the Lido staking platform.
👉 The amount of stETH you earn is determined by combining the value of your initial staking deposit and adding your daily staking rewards.
👉 stETH can be used in all of the same ways that Ethereum can be used: it can be bought, sold and spent on DeFi apps, or used as collateral for on-chain lending.
👉 This coin can also be redeemed for Ethereum.
How to buy
👉 If you are not able to stake Ethereum to earn stETH (staked Ether), then you can buy tokens directly from an exchange.
👉 Some of the most popular exchanges for buying stETH are Binance, Gate.io and Uniswap.
👉 First, you must create an account with your preferred exchange and then your account needs to be funded.
👉 Once your account is funded, you can purchase stETH tokens and transfer them to your secure crypto wallet to ensure that you have full ownership of the asset.
Top 3 wallets
👉 Based on research, we have compiled a list of the top 3 wallets that are compatible with Lido and suitable for storing stETH coins.
👉 The Ledger Nano X is a hardware wallet that can store up to 100 applications and it is possible to manage all your assets directly from the device.
👉 This wallet supports more than 1,000 cryptocurrencies and it is one of the most trusted wallets, with all your private keys stored inside the hardware wallet’s chip. It can also be used for staking with Lido.
👉 MetaMask is a software wallet that is trusted by more than 21 million users globally and it can be used to swap tokens directly from your desktop or mobile device.
👉 You are given a key vault, secure login methods, a token wallet, and access to a token exchange. You can also use this wallet to connect to blockchain apps.
👉 Trust Wallet is free to download and use, and supports a total of more than 160,000 coins and digital assets.
👉 This wallet can be used to buy, sell and trade your assets, and also allows you to manage your coins directly from the wallet.
Trust Wallet has improved security measures and uses private access keys, biometrics and unique pin codes to protect your account.
👉 For crypto enthusiasts or token holders who are too busy to trade or feel that the markets are too volatile, staking is an excellent way to get something back for your crypto investments and tokens that are not being used.
👉 By staking with Lido, your tokens are entrusted to a risk-free, secure platform and the best part is – you don’t have to give up ownership of your tokens and if you want to trade them, you can!