- stETH was first introduced in 2020 by the decentralized protocol Lido, in anticipation of Ethereum’s shift to the PoS mechanism.
- Lido liquifies ETH and creates staked ETH liquid by issuing stETH tokens.
- Because of this initiative, interested stakers can now also stake any amount of ETH and claim their rewards anytime.
Upon looking at the top 10 cryptocurrencies in terms of market cap, one token caught my attention. This token has a similar fiat value to the second placer, has almost the same symbol, and sounds like it.
At first, I thought it was just a meme coin that was trying to imitate Ether, but upon investigating what was happening, it turns out that it is not a clone; it is a good samaritan. And it is called a Lido Staked Ether (stETHP).
Check out our Cryptocurrency 101 Series in alphabetical order:
stETH to PHP
Introduction to Lido Staked Ether
In our “How to Earn Free Crypto” series, it can be recalled that one of the ways to earn free crypto is through staking.
Staking is the process of locking up some of your cryptocurrency in a wallet or on a blockchain network to support its functionality and verify transactions. By staking, you can earn rewards or interest, typically in the form of more crypto.
Read more: Crypto Staking 101: How to Earn Passive Income in Crypto and Web3
In this case, the staking Ether (ETH) token helps secure the Ethereum network under the proof-of-stake consensus mechanism, which is believed to be more energy-efficient than the proof-of-work mechanism that the Bitcoin network is using.
However, the required number of ETH to be staked must be at least 32, which is more than $50,000 in fiat value—an expensive activity. Staked $ETH in the Beacon Chain was also not allowed to be withdrawn from 2020 to 2023—a long time of activity.
Read more: Ethereum Shanghai to Allow Staked ETH Withdrawal by 2023 Q1
These objectives are undoubtedly difficult to achieve, especially for those who cannot lend their assets too much. Lido, a decentralized protocol, tried to solve it by allowing users to stake any amount of ETH with multiple validators who share the slashing risks and provide high uptime.
stETH was first introduced in 2020 by the protocol, in anticipation of Ethereum’s shift to the PoS mechanism. This initiative allowed users to access their staked ETH and claim their staking rewards without waiting for the transition.
Basically, Lido liquifies ETH and creates staked ETH liquid by issuing stETH tokens. $stETH can then be used for trading, lending, and even as a utility coin for DeFi and dApp applications.
But most of all, those who hold stETH will receive staking rewards proportional to their share of the total staked ETH on Lido. It is like hitting two birds with just one stone—earn staking rewards while using it for trading or crypto lending.
Why stETH? Cause, Why Not?
Lido’s staking solution, the stETH, offers advantages and benefits for those who want to participate in securing the Ethereum Network while earning rewards.
As mentioned above, stETH is a liquid token. This means that it can be used for DeFi applications, like crypto lending. It is also an ERC-20 token and follows the ETH 2.0 Beacon Chain’s rewards rate. This makes users earn over time as the network rewards are distributed.
Because of this initiative, interested stakers can now also stake any amount of ETH and claim their rewards anytime. Far from the objectives needed—minimum of 32 ETH, with allowed time only.
Lastly, Lido is governed by a DAO, which consists of $LDO holders and node operators. This is to secure the protocol’s parameters, like fee structure, node operator selection, and distribution of rewards.
Are you convinced enough to hold and own $stETH now? Dive into the realm of staking with our comprehensive guide on buying Lido Staked Ether (stETH) in the Philippines. Embark on your staking journey confidently with BitPinas.
Buying $stETH in the Philippines: Where to?
Apparently, none of the local exchanges—Coins, PDAX, Maya, and GCrypto—offers buying, selling, and trading $stETH to their users. However, international crypto exchanges are available and offer the token, like OKX, Bitget, Bybit, and HTX.
- Create and verify an account. Some requirements include selfie verification, valid ID, phone number, and email address.
- Find the “Buy” feature and choose the stETH trading pair, which normally comes with STETH/USD or STETH/USDT.
- Check if the transaction is successful by looking at the crypto wallet on the exchange’s platform.
- If the user will not use it for trading, it is advised to transfer the assets to compatible wallets, like MetaMask and Ledger. Note: Users can also buy ETH directly to the wallet and other exchanges.
- Connect the wallet to Lido’s Stake Ether feature.
- Fill in the amount that will be staked and select “Submit.” Note: Keep some ETH for gas fees.
- Watch how the assets grow. Staking rewards on stETH are applied through daily basis.
This article is published on BitPinas: Lido Staked Ether Buying Guide
Disclaimer:
- Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
- BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.
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- Source: https://bitpinas.com/learn-how-to-guides/steth-ph-lido-staked-ether/
