Lido Staked ETH

stETH

stETH is a tradeable receipt of ETH locked through Lido to secure the Ethereum network. stETH is a rebase token that accrues staking yield with an elastic supply. It is not yet redeemable for ETH until a later network upgrade.

Risk Rating
Best
$3,148.05
2.60%
Summary
What we like
Enables users to to earn staking rewards with any amount of ETH (minimum of 32 ETH requirement to become a full validator) while retaining liquidity of locked ETH.
What we like less
Greater technical risk around exposure to Lido smart contract risk. stETH is also less liquid than ETH and users must go through an exit queue to redeem back their underlying ETH.
What it means for you
stETH is a solid instrument to gain exposure to ETH staking rewards with widespread adoption across the DeFi ecosystem.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $29.3B
  • Fully Diluted Valluation: $29.3B
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #4
  • Circulating Supply: 9,309,890
  • Total Supply: 9,309,925
  • Volume (24H): $100.8M
  • ATH: $4,829.57 (11/10/2021)
  • ATL: $482.90 (12/22/2020)
Risk Assessment
Best
Asset Strength

stETH is a mid-cap, fully collateralized asset. This asset is exposed to the underlying risks of Lido, a protocol rated as Average.

Asset Tokenomics

stETH has an uncapped supply but has inflation control or burn mechanisms in place. stETH is backed 1:1 by ETH staked on the Ethereum blockchain. The asset accrues staking rewards automatically via daily rebases. stETH can trade at a discount to 1 ETH as it is less liquid, has less utility (cannot be used to pay for gas fees), and has more technical risk (Lido smart contract bugs).

Asset Volatility

stETH is highly correlated to the overall market. stETH can trade at a discount to 1 ETH as it is less liquid, has less utility (cannot be used to pay for gas fees), and has more technical risk (delay to ETH merge, Lido smart contract bugs).

Dependencies

Lido

Things to know about stETH

What is Lido?

Lido is a liquid staking platform for Proof-of-Stake blockchain assets that allows users to stake their asset without needing to lock assets or maintain the required infrastructure. This enables users to continue participating in DeFi activities related to lending and market making. Lido helps address some of the core problems associated with initial ETH staking around illiquidity, immovability and accessibility. See our risk assessment of Lido for more details.

How does stETH work?

Users receive stETH tokens on a 1:1 basis when depositing their ETH into the Lido staking contract. The ETH is split between node operators and then sent to their respective validators. The stETH token balance is updated on a daily basis (rebase token) to reflect the accrued staking rewards, minus any penalties. There are no lock-up or minimum deposit requirements when staking through Lido.

How to redeem back for ETH?

ETH deposited into the Lido staking contract are subsequently locked into the Ethereum PoS deposit contract. This contract is collectively managed by a set of industry leaders chosen by the Lido DAO. The staked ETH is now withdrawable following the Shanghai upgrade and the launch of Lido V2. Users must go through an exit queue in order to withdraw their underlying ETH. Users can also always exchange their stETH for ETH through exchanges that offer liquidity like Curve’s stETH/ETH pool.

stETH Pools
Instadapp ETH Staking V2
8.7%
Yield
$87M
TVL
Risk
C
Chain
Ethereum
Convex ETH Market Making
3.1%
Yield
$85M
TVL
Risk
B
Protocol
Convex
Chain
Ethereum
Pendle ETH Market Making (12/25/24)
11.5%
Yield
$19M
TVL
Risk
B
Protocol
Pendle
Chain
Ethereum
Pendle ETH Principal Token (12/25/24)
4%
Yield
$19M
TVL
Risk
B
Protocol
Pendle
Chain
Ethereum
Uniswap ETH Market Making
8.2%
Yield
$8M
TVL
Risk
A
Protocol
Uniswap V2
Chain
Ethereum
Instadapp ETH Staking
2.9%
Yield
$827K
TVL
Risk
B
Chain
Ethereum
Idle ETH Perpetual Yield Tranches (Senior)
2.4%
Yield
$469K
TVL
Risk
A
Protocol
Idle
Chain
Ethereum
Idle ETH Perpetual Yield Tranches (Junior)
3.4%
Yield
$359K
TVL
Risk
B
Protocol
Idle
Chain
Ethereum