{"id":"lido-staked-ethereum-steth","title":"Lido Staked Ethereum (stETH)","content":"**Lido Staked Ethereum (stETH)** is a token that represents staked Ethereum in [Lido](https://iq.wiki/wiki/lido-dao), combining the value of the initial deposit and staking rewards. stETH tokens are [minted](https://iq.wiki/wiki/minting) upon deposit and [burned](https://iq.wiki/wiki/token-burn) when redeemed. [[1]](#cite-id-xb0wofpmzif)\n\n$$widget0 [YOUTUBE@VID](cB0ENeOJYDY)$$\n\n## Overview\n\n### Lido Platform\n\n[Lido](https://iq.wiki/wiki/lido-dao) is a platform that uses [Ethereum](https://iq.wiki/wiki/ethereum) to provide liquid staking services, backed by leading [blockchain](https://iq.wiki/wiki/blockchain) staking providers. It makes staked [ETH](https://iq.wiki/wiki/ethereum) liquid and allows participation with any amount of ETH.\n\nUsers who [stake](https://iq.wiki/wiki/staking) with Lido receive stETH tokens in a 1:1 ratio to their initial stake. stETH balances can be used like [ETH](https://iq.wiki/wiki/ethereum) to earn and lend rewards, and are updated daily to reflect ETH staking rewards. There are no lock-ups or minimum deposits when staking with Lido. Users receive real-time staking rewards and can use staked tokens to compound rewards across the [DeFi](https://iq.wiki/wiki/defi) ecosystem. [[3]](#cite-id-azenm85jvnb)\n\n$$widget0 [YOUTUBE@VID](L2BvW0si6nA)$$\n\n### stETH\n\nstETH was launched in 2020 in anticipation of [Ethereum](https://iq.wiki/wiki/ethereum) Merge with its [proof of stake](https://iq.wiki/wiki/proof-of-stake) consensus mechanism. It functions as a liquidity token, enabling users to deposit their [ETH](https://iq.wiki/wiki/ethereum) into a [smart contract](https://iq.wiki/wiki/smart-contract) on the Lido blockchain and receive an equal amount of stETH to be traded, exchanged, borrowed against, or used for other liquidity purposes. [[2]](#cite-id-senuiobwfz)\n\nStaked Eth in Lido allows users to put up any amount of [ETH](https://iq.wiki/wiki/ethereum) as a stake in exchange for an equal amount of stETH. stETH accrues staking rewards regardless of where it is acquired. [[4]](#cite-id-5yx6nn20snf)\n\n### stETH as the liquidity layer for Ethereum staking\n\nThere are two ways to mint stETH in Lido v3: Core Pool and stVaults. This section covers how they link up and how stETH stays backed across both. [[5]](#cite-id-ieaFVhsipe)\n\nThe Core Pool (formerly known as Lido v2) is the classic way to stake: you send ETH and get stETH back at a 1:1 ratio. The ETH you stake goes into the Staking Router, which spreads it across a set of Node Operators. Redemption works through an asynchronous withdrawal queue: first you request to exit, and once the request is processed, you can claim your ETH—also at a 1:1 basis.\n\nstVaults extend the protocol’s capabilities by enabling users to choose node operators and stake on customizable, non-custodial terms—while preserving access to stETH liquidity. In effect, stVaults turn staking into a marketplace where users can select who to stake with and under what conditions.\n\nEach stVault is operated by a specific node operator and comes with its own rules—like fee structure, reputation, or validator preferences (for example, non-censorship). A staker selects a vault, stakes ETH, and can unstake at any time. Optionally, they can mint stETH against their vault position, unlocking liquidity without exiting. This stETH can be used freely—whether in DeFi, for hedging, or to build leverage. To exit a vault where stETH was minted, the borrowed stETH (plus fees) must be repaid first. [[5]](#cite-id-ieaFVhsipe)\n\n## Mechanics\n\nstETH token balances daily when the [oracle](https://iq.wiki/wiki/oracle) reports changes in Eth2 deposits and changes in ETH rewards from users who stake via Lido. Users who hold stETH will not see a transaction sent to their [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) because the rewards are embodied through a balance rebase.\n\nRather, users see their stETH balance automatically change without an accompanying transaction taking place. Rebase only works across integrated [DeFi](https://iq.wiki/wiki/defi) platforms - [Curve](https://iq.wiki/wiki/curve-finance) and [Yearn](https://iq.wiki/wiki/yearn). Providing stETH as liquidity across [UniSwap](https://iq.wiki/wiki/uniswap), [1inch](https://iq.wiki/wiki/1inch) and [SushiSwap](https://iq.wiki/wiki/sushiswap) may result in losing out on a portion of the daily staking rewards because these platforms are not designed for rebasable tokens. [ETH](https://iq.wiki/wiki/ethereum) deposited via Lido is split between node operators and sent to their respective validators. [[4]](#cite-id-5yx6nn20snf)\n\n$$widget0 [YOUTUBE@VID](aBj0oP3rsfA)$$\n\n## Reward Rate\n\nUsers who stake their ETH with Lido receive daily rewards in form of stETH balance rebases. These rebases affect all holders of stETH, regardless of whether their ETH has been deposited in the queue. [[4]](#cite-id-5yx6nn20snf)\n\n## Use Cases\n\nLido staked ether (stETH) has several use cases because it is designed to take the place of staked ether (ETH).\n\n### Lending\n\nLending platforms e.g. [Aave](https://iq.wiki/wiki/aave) enable users to wrap their stETH and other cryptocurrencies to use as loans. The lending value is determined by the wrapped token, which is based on the underlying value of the staked token.\n\n### Liquidity Pools\n\nUsers can pool stETH with [ETH](https://iq.wiki/wiki/ethereum) in a [liquidity pool](https://iq.wiki/wiki/liquidity-pool), allowing them to swap stETH for [ETH](https://iq.wiki/wiki/ethereum) when desired. This is known as a pool swap and essentially unstakes a user's ETH.\n\n### Yield Farming\n\nStaking [ETH](https://iq.wiki/wiki/ethereum) or stETH can provide users with the opportunity to earn [yields](https://iq.wiki/wiki/yield-farming). Platforms such as [Harvest](https://iq.wiki/wiki/harvest-finance) offer token holders the chance to deposit stETH and double their yield earnings. [[2]](#cite-id-senuiobwfz)","summary":"Lido Staked Ether (stETH) is a token that represents staked Ethereum in Lido, combining the value of the initial deposit and staking rewards. stETH tokens are m...","images":[{"id":"QmXk8m1Mom9GvYphNEokonmRgmwjzgeVyk4NkSsKNsu5e6","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"},{"id":"Glossary"}],"media":[{"id":"https://www.youtube.com/watch?v=L2BvW0si6nA","size":"0","name":"L2BvW0si6nA","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=cB0ENeOJYDY","size":"0","name":"cB0ENeOJYDY","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=aBj0oP3rsfA","size":"0","name":"aBj0oP3rsfA","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"website","value":"https://lido.fi/"},{"id":"twitter_profile","value":"https://twitter.com/lidofinance"},{"id":"discord_profile","value":"https://discord.com/invite/lido"},{"id":"reddit_profile","value":"https://www.reddit.com/r/LidoFinance/"},{"id":"telegram_profile","value":"https://t.me/lidofinance"},{"id":"github_profile","value":"https://github.com/lidofinance"},{"id":"previous_cid","value":"QmZodSCace7xzEd3FP6Lv9YqZYyDN1JWLxo1dVHggno8hv"},{"id":"references","value":"[{\"id\":\"xb0wofpmzif\",\"url\":\"https://www.coingecko.com/en/coins/lido-staked-ether\",\"description\":\"stETH\",\"timestamp\":1670935610137},{\"id\":\"senuiobwfz\",\"url\":\"https://www.investopedia.com/staked-ether-5496378#toc-what-is-steth\",\"description\":\"investopedia\",\"timestamp\":1670946282755},{\"id\":\"azenm85jvnb\",\"url\":\"https://lido.fi/\",\"description\":\"lido\",\"timestamp\":1670946324410},{\"id\":\"5yx6nn20snf\",\"url\":\"https://blog.lido.fi/steth-the-mechanics-of-steth/\",\"description\":\"mechanics of steth\",\"timestamp\":1670947690436},{\"url\":\"https://hackmd.io/@lido/S1-r1Cdexl#stETH-as-the-liquidity-layer-for-Ethereum-staking\",\"description\":\"Lido V3\",\"id\":\"ieaFVhsipe\",\"timestamp\":1748017274736}]"},{"id":"commit-message","value":"updated page"},{"id":"previous_cid","value":"QmZodSCace7xzEd3FP6Lv9YqZYyDN1JWLxo1dVHggno8hv"}],"events":[{"id":"edde8f15-bc0c-47e9-ba04-76bf26a47440","date":"2020-08-01","title":"Date Founded","type":"CREATED","description":"date founded","link":"https://lido.fi/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":["vasiliy-shapovalov"],"speakers":[]}}