By dalz on Skatehive
The Lido protocol has been dominating staking on Ethereum. For those unfamiliar with it, it is a smart contract defi protocol that provides users to stake ETH no matter the amount they have and earn interest on their Ethereum. To run Ethereum validators users need hardware and a minimum 32 ETH staked. The LIDO protocol is facilitating the staking of Ethereum allowing everyone to get some interest on their ETH. https://lido.fi/ What is more interesting is when you stake Ethereum, you get staked tokens back in the form of stETH, then you can then use on other places, like collateral for loans, or even sell them. The initial ETH remains staked and keeps earning interest. This is what is known as liquid staking, as your funds are staked but not locked up. Bear in mind that the stETH is a totally different asset than the native ETH that is staked. Because of this, the price of stETH, although in theory pegged 1 to 1 with ETH, can deppeg and be priced lower. This has happened in the past, es