Question 1

What is staked Eehereum?

Accepted Answer

Staked ethereum is the ETH that’s staked either directly onto the beacon chain or via centralized exchanges or liquid staking platforms. The staked ETH or stETH token by Lido is poupular due to its high liquidity allowing users to earn staking rewards and other forms of yield as well.

Question 2

What is the difference between ETH and stETH?

Accepted Answer

While ETH is the native crypto of the Ethereum ecosystem, stETH is the Ethereum derivative token issued by Lido Finance — a liquid staking solution on Ethereum. The value of stETH, for a user, increases with the staking rewards. As per the actual value of stETH, its price is pegged to that of ETH in a 1:1 ratio.

Question 3

How to convert ETH to stETH?

Accepted Answer

To convert ETH to stETH, you need to connect your ETH-loaded wallet to Lido’s staking platform. Once done, you need to choose the amount of ETH that needs converting, account for the gas fees, and hit confirm. This way, you will receive an equivalent amount of stETH in your wallet, in the 1:1 ratio.

Question 4

Where to buy stETH?

Accepted Answer

You can buy stETH by making a standard purchase on decentralized exchanges like Uniswap, Curve, and more. However, if you currently hold ETH, the best way to get stETH is by staking ETH on Lido and getting the same reflected in your stETH-compatible wallet.

Question 5

What are the benefits of staking?

Accepted Answer

There are several perks of staking. First of all, staking on behalf of network validators can help secure a proof-of-stake ecosystem. For the users, though, staking can help generate passive income in the form of staking rewards. And if your staking output is stETH, you can further use the same to acquire yields across multiple platforms.

Question 6

How much stETH can you earn from staking?

Accepted Answer

The amount of stETH you can earn depends on the staking rewards accrued by the validators related to the Lido ecosystem. The value accruing method ensures that while the price of your stETH remains the same — pegged to ETH — the value increases the rewards keep building and accumulating.

Question 7

Is stETH safe?

Accepted Answer

Lido’s stETH is relatively safe as a derivative token. However, as it still requires you to stake ETH to generate stETH, a number of risks are involved, inclusing slashing risks, regulatory risks, market risks, smart contract risks, and liquidity risks to deal with. Lido, however, initiates extensive and periodic audits to keep most of these risks at bay.

Question 8

What are the stETH liquidity pools?

Accepted Answer

stETH liquidity pools are the specialized pools with stETH and other tokens in them. You can locate them on DEXs like Uniswap, Curve, and even SushiSwap, for that matter. These stETH liquidity pools do not always have the right volume of assets or the desired liquidity to help users buy-sell-swap assets. Therefore, you can earn yield by providing liquidity to these pools. These yields can be in the form of trading and even incentives related to liquidity mining.

Question 9

Can you unstake stETH?

Accepted Answer

Yes, as of April end, you can unstake your stETH as the Ethereum Shanghai upgrade has now allowed withdrawals. However, ETH withdrawals via unstaking depend on the epoch-based guidelines set by the Ethereum foundation. Also, the unstaking ratio remains the same as staking — 1:1.

Artyom Gladkov

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