To become an Ethereum validator, you need a minimum of 32 ETH – a high entry ticket!
What’s more, although the situation has improved with the Shanghai update, Ethereum staking is not easily accessible in case of emergency.
Finally, being a validator on Ethereum requires continuous node management (7 days a week), which is restrictive.
Lido is a key DeFi product, as it facilitates Ethereum crypto staking.
With Lido, you can participate in the Ethereum network with no minimum contribution via staking pools.
What’s more, by staking Ethereum on Lido, you earn stETH tokens which you can use freely.
While Lido is primarily focused on Ethereum staking, it also allows you to stake other cryptos such as Polygon (MATIC) and Polkadot (DOT).
It works on the same principle as Ethereum, with the creation of representative tokens at the 1.1 ratio (stMATIC, stDOT, etc.).
Finally, the Lido protocol has also opened up to other Ethereum layers 2, such as Arbitrum and Optimism, with “wrapped” versions of stETH (wstETH).
At present, Lido is the leading DeFi protocol, with a TVL in excess of $32 billion, up 40% over the last 30 days.
The DeFi protocol includes many well-known DeFi partners, such as Balancer, Curve, Cosmos and Kyber Network.