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Lido
Lido shows a moving average of the APR for the past 7 days.
Meanwhile, the APR that you see on Krystal is the APR of the current block. Depending on the fluctuations of staking rewards, there may be a difference in the yield that you see on Krystal compared to Lido.
Lido is a liquid staking solution for ETH 2.0 backed by industry-leading staking providers. Lido lets users stake their ETH - without locking assets or maintaining infrastructure - whilst participating in on-chain activities, e.g. lending.
Lido's goal is to solve the problems associated with initial ETH 2.0 staking - illiquidity, immovability and accessibility - making staked ETH liquid and allowing for participation with any amount of ETH to improve the security of the Ethereum network.
As part of their continuing efforts to be a force for decentralization, Lido has published a scorecard for community input and accountability.
Learn more here.
When staking with Lido, users receive stETH tokens on a 1:1 basis representing their staked ETH. stETH balances can be used like regular ETH to earn yields and lending rewards, and are updated on a daily basis to reflect your ETH staking rewards. Note that there are no lock-ups or minimum deposits when staking with Lido.
When using Lido, users receive secure staking rewards in real-time, allowing for participation in the securing of Ethereum without the associated risks and downside potential.
Learn more here.
stETH tokens can be used as one would use ether, allowing you to earn ETH 2.0 staking rewards whilst benefiting from e.g. yields across decentralised finance products.
stETH is a token that represents staked ether in Lido, combining the value of the initial deposit + staking rewards. stETH tokens are minted upon deposit and burned when redeemed. stETH token balances are issued 1:1 to the ethers that are staked by Lido. stETH token’s balances are updated when the oracle reports a change in the total stake every day.
stMATIC is an ERC20 token that represents the account’s share of the total supply of MATIC tokens inside PoLido system. It is a non-rebasable token, which means that the amount of tokens in the user’s wallet is not going to change. During time, the value of this token is changing, since the amount of MATIC tokens inside the protocol is not constant. stMATIC will be supported by a variety of DeFi applications across Ethereum and Polygon networks.
Lido is a secure liquid staking solution for a number of reasons:
- 1.Open-sourcing & continuous review of all code.
- 2.Committee of elected, best-in-class validators to minimise staking risk.
- 3.Use of non-custodial staking service to eliminate counterparty risk.
- 4.Use of DAO for governance decisions & to manage risk factors.
- 5.Usually, when staking ETH you choose only one validator. In the case of Lido you stake across many validators, minimising your staking risk.
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.
Lido is built atop experimental technology under active development, and there is no guarantee that ETH 2.0 has been developed error-free. Any vulnerabilities inherent to ETH 2.0 brings with it slashing risk, as well as stETH fluctuation risk.
The value of stETH is built around the staking rewards associated with the Ethereum beacon chain. If ETH 2.0 fails to reach the required levels of adoption we could experience significant fluctuations in the value of ETH and stETH.
In the early stages of Lido, slightly more than 600k ETH became held across multiple accounts backed by a multi-signature threshold scheme to minimize custody risk. If signatories across a certain threshold lose their key shares, get hacked or go rogue, we risk these funds (<20% of total stake as of April 2022) becoming locked.
ETH 2.0 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 coverage that is paid from Lido fees.
Users risk an exchange price of stETH 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.
When staking with Lido, users receive stETH tokens on a 1:1 basis representing their staked ETH. stETH balances can be used like regular ETH to earn yields and lending rewards, and are updated on a daily basis to reflect your ETH staking rewards. Note that there are no lock-ups or minimum deposits when staking with Lido.
When using Lido, users receive secure staking rewards in real-time, allowing for participation in the securing of Ethereum without the associated risks and downside potential.
Learn more here.
Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO, and a coverage fund.
Last modified 1yr ago