Lido liquid staking
Decentralized protocol enabling liquid staking of ETH, where users receive stETH tokens for rewards while maintaining DeFi liquidity.
What is Lido liquid staking?
Lido, launched in 2020, is Ethereum’s premier liquid staking solution, allowing users to stake any ETH amount for stETH (representing staked ETH plus rewards), with 27% of total staked ETH under management as of 2025.
Staking yields ~3-5% APR (daily rewards from Day 1), with a 10% fee split between node operators (for 97.63% uptime) and DAO treasury; users get 90% of rewards. Over 30 independent operators, including home stakers via modules like Simple DVT (using Obol/SSV for risk reduction), ensure decentralization, with stETH tradable on DEXs like Curve for liquidity.
Related Terms
Morpho
A permissionless decentralized lending protocol on Ethereum and Base that optimizes rates by matching lenders and borrowers peer-to-peer atop pools like Aave and Compound.
Liquidity Pool (DEX)
A liquidity pool is a smart contract on a decentralized exchange (DEX) that holds a pair of tokens, enabling automated trading and liquidity provision without traditional order books.
Liquid Staking
A staking mechanism on Ethereum where users receive derivative tokens representing their staked ETH, allowing them to use these tokens in DeFi activities while earning staking rewards.
Polygon PoS Chain
Polygon's proof-of-stake sidechain that parallels Ethereum, offering high-throughput transactions secured by its own validators.
Open Interest
The total value of outstanding perpetual swap contracts on a Perp DEX.
Nonce of Ethereum Account
A unique transaction counter associated with an Ethereum account to ensure each transaction is processed only once, preventing replay attacks.