Lido Staked MATIC (Ethereum)

stMATIC

stMATIC is a representation of MATIC staked through the Lido protocol to secure the Polygon PoS blockchain.

Risk Rating
Best
$0.74
1.56%
Summary
What we like
Enables users to to earn staking rewards while retaining liquidity of locked MATIC.
What we like less
Greater technical risk around exposure to Lido smart contract risk. stMATIC is also less liquid than MATIC with less usage across DeFi.
What it means for you
stMATIC is a solid instrument to gain exposure to MATIC staking rewards with the ability to earn additional yield on top by deploying stMATIC across DeFi.
Information
Blockchain
  • Ethereum
Key Metrics
  • Fully Diluted Valluation: $413.4K
  • Total Supply: 560,770
  • Total Supply: 10,000,000,000
  • Volume (24H): $488.6K
  • ATH: $1.87 (06/12/2022)
  • ATL: $0.29 (06/19/2022)
Risk Assessment
Best
Asset Strength

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

Asset Tokenomics

stMATIC has an uncapped supply but has inflation control or burn mechanisms in place. stMATIC is backed by MATIC staked on the Polygon blockchain. stMATIC is redeemable for MATIC plus accrued staking rewards following an unbonding period.

Asset Volatility

stMATIC is highly correlated to the overall market.

Dependencies

Lido

Things to know about stMATIC

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. See our risk assessment of Lido for more details.

How does stMATIC work?

Users receive stMATIC tokens when depositing their MATIC into the Lido staking contract. Lido will calculate the current stMATIC-MATIC ratio and send the corresponding amount to the user. The stMATIC represents the user's share o the total supply of MATIC tokens inside Lido. It is a non-rebase token which means the balance in the user's wallet does not change. Instead, the value of the token is changing as Lido earns staking rewards or incurs any penalties. There are no lock-up or minimum deposit requirements when staking through Lido.

How to redeem back for MATIC?

MATIC deposited into the Lido staking contract are subsequently delegated across Polygon validators that are part of Lido on the Polygon network. Users who wish to unstake must wait an unbonding period of 3-4 days. In the meantime, users can always exchange their stMATIC for MATIC through exchanges that offer liquidity like Quickswap's stMATIC-MATIC pool.