Lido Staked Ether (stETH) is a liquid staking derivative that enables Ethereum (ETH) holders to earn staking rewards without locking their assets or losing liquidity. Developed by the leading decentralized finance (DeFi) protocol Lido, stETH allows users to participate in Ethereum 2.0 staking while maintaining flexibility to use their staked assets across various DeFi platforms.
How Does stETH Work?
When you stake ETH through Lido, you receive stETH tokens in return. These tokens represent your staked ETH and accumulate staking rewards over time. The process involves depositing ETH into Lido’s smart contract, which then stakes the ETH on Ethereum 2.0’s Beacon Chain.
Rewards earned from staking are automatically reinvested, increasing your stETH balance.
Key Features of stETH
Liquidity
Unlike traditional staking, stETH lets you retain liquidity. You can trade, borrow, or use stETH in DeFi applications while earning staking rewards.
1:1 Peg to ETH
Each stETH token maintains a 1:1 ratio with ETH, ensuring its value mirrors ETH’s price.
Automatic Rewards
Staking rewards are auto-compounded into your stETH balance, boosting your holdings over time.
Security
Lido employs a decentralized network of node operators to stake ETH, minimizing slashing risks and enhancing security.
Using stETH in Decentralized Finance (DeFi)
stETH can be integrated into various DeFi platforms, including:
MakerDAO
Use stETH as collateral to mint DAI, MakerDAO’s stablecoin.
Curve Finance
Provide liquidity in stETH pools to earn trading fees and additional rewards.
Aave
Lend stETH to earn interest or borrow against it.
These integrations maximize the utility of your staked assets while generating rewards.
👉 Learn how to buy Lido Staked ETH (stETH)
How to Stake ETH with Lido
Follow these steps to stake ETH using Lido:
- Visit Lido’s Staking Page: Go to stake.lido.fi.
- Connect Your Wallet: Use compatible wallets like MetaMask, Ledger, or WalletConnect.
- Deposit ETH: Select the amount of ETH you wish to stake.
- Receive stETH: After staking, you’ll receive stETH tokens in your wallet.
- Monitor Rewards: Track your staking rewards and stETH balance via Lido’s dashboard.
stETH Price and Market Data (2025)
As of April 2025, stETH trades at ~$1,598.31, with a circulating supply of 9.31 million tokens and a market cap of ~$14.8 billion. It’s actively traded on platforms like Coinbase, Kraken, and Uniswap.
Benefits of Using stETH
- No Minimum Deposit: Stake any amount of ETH—no 32 ETH requirement.
- Flexible Access: Use stETH in DeFi apps while earning staking rewards.
- Decentralized Governance: Participate in Lido’s DAO to influence protocol decisions.
Risks to Consider
- Smart Contract Risk: Potential vulnerabilities in Lido’s smart contracts.
- Market Volatility: stETH’s value may deviate from ETH’s 1:1 peg during market fluctuations.
- Withdrawal Delays: Converting stETH back to ETH may involve delays due to Ethereum 2.0’s withdrawal queue.
FAQs
1. What is Lido Staked Ether (stETH)?
stETH is a tokenized version of ETH staked via Lido, enabling users to earn rewards without locking assets.
2. How does stETH accrue value?
stETH balances increase automatically as staking rewards are compounded.
3. Where can I trade stETH?
stETH is available on exchanges like Uniswap, Coinbase, and Kraken.