We are thrilled to announce that Stakin has recently been onboarded as an Ethereum 2.0 node operator to further improve the decentralization of Lido Protocol.
Lido is a liquid staking service across multiple Proof-of-Stake blockchains. Lido offers an ETH 2.0 liquid staking solution backed by industry-leading staking providers. The service allows users to stake their ETH without locking assets or managing infrastructure.
Lido stakers hold stETH, a liquid representation of their staked Ether. stETH accrues value based on Ethereum staking interests, and it can be used in Decentralized Finance (DeFi) applications: liquidity providing, lending, etc. which enables a more efficient use of capital. Lido tackles the concerns associated with early ETH 2.0 staking - illiquidity, immovability, and accessibility – by making staked ETH liquid and allowing participation with any amount of ETH to increase Ethereum network security.
In just around a year, Lido has become the leading liquid staking service on Ethereum and other networks, with ~ $10bn in Total Value Locked as of February 2022.
Ethereum 2.0
ETH2 is Ethereum’s upgrade from Proof-of-Work to Proof-of-Stake. Ethereum 2.0 has adopted a Proof-of-Stake (PoS) consensus mechanism, in which validators stake increments of 32 ETH in order to operate nodes and participate in block verification. As with other PoS networks, stakers and validators are compensated for locking their funds and participating in consensus.
The current version of Ethereum 2.0, also called the Beacon Chain, is estimated to merge with Ethereum sometime around the second or third quarters of 2022. The Beacon Chain introduces Proof-of-Stake to Ethereum, and will introduce shard chains to the network after the merge happens.
The network is expected to increase to 64 shards (64 coordinated blockchains), which should increase transaction speed and efficiency. The Beacon chain keeps track of validators and their stakes, selects block validators at random, and will eventually assign them to validate on shard chains.
Lido Finance ETH2 Solutions
Through liquid staking, Lido unlocks the potential of DeFi and adds flexibility for the users. That said, it also unlocks further investment opportunities for staked assets. When staking using Lido, users obtain stETH tokens proportionally to the amount of ETH staked. stETH balances can be utilized to earn yields and lending rewards just like ordinary ETH, and they are updated daily to reflect the ETH staking rewards, minus any penalties. On Lido, there are no lock-ups or minimum deposits. Moreover, when using Lido, users receive secure staking rewards in real-time, allowing them to participate in Ethereum security with fewer risks and fewer downside possibilities.
Smart contracts power the platform, and there is no minimum amount required to engage in Eth2.0. In exchange for their ETH, participants receive an entirely new currency, stETH. This new currency is a liquid version of staked ETH that may be used to produce additional yields and lending benefits based on the participant's aims and strategy.
The Lido ecosystem is wide and includes various apps that provide users with opportunities for utilizing their staked assets on multiple platforms.
Final Thoughts
Stakin is thrilled to have been selected as a node operator for Lido on Ethereum. Lido is the most liquid and popular liquid staking solution on Ethereum. The DAO has a strong commitment to decentralization, and we look forward to contributing to the much-needed diversity in Ethereum clients, infrastructure set-ups and geography of operations. Liquid staking offers many advantages for users, notably in terms of accessibility (no minimum) and capital efficiency (notably the access to DeFi), and we will also be providing education materials and resources to our community on the benefits of using Lido.
About Lido Finance
Lido is a liquid staking protocol, allowing users to earn daily staking rewards without locking assets or maintaining complex staking infrastructure. Backed by several industry-leading staking providers, Lido makes staked assets liquid and allows for the use of staked assets to be deployed across various protocols to compound staking yields whilst strengthening the surrounding DeFi space. Lido has since its launch grown to become the leading staking protocol for Ethereum whilst expanding its offerings across both Terra and Solana, with more to come.
About Stakin
Stakin is an infrastructure operator for Proof-of-Stake (PoS) public blockchains, offering non-custodial delegation services. The company enables PoS cryptocurrency holders to earn interests on their holdings and participate in decentralized governance while remaining in possession of their cryptocurrencies.
Stakin serves institutional crypto players, foundations, custodians, exchanges as well as a large community of individual token holders. Driven by demand from institutional customers and the community, Stakin provides services for multiple blockchains, including leading ecosystems such as Cosmos, Solana, Polygon, Polkadot, and more.
For more information about Stakin, visit the Website, Twitter, Blog, or join the Telegram and Discord community.
DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.
