Apr 14, 2023

Lido

Ethereum
Polkadot
Polygon
Solana
Kusama
Liquid Staking

How to Start

Introduction

Lido Finance is a decentralized staking service that provides an innovative solution for users to stake their ETH and other assets without any minimum deposit requirements. For those interested in participating in the ETH staking process, it is possible to stake any amount of ETH and receive liquid stETH tokens in return, which represent their staked ETH and can be traded or used for other purposes.

Whether you are new to staking or an experienced staker, this guide will help you navigate the process of staking your ETH in a non-custodial and decentralized way with Lido Finance.

How to start?

To get started with staking in Lido's platform, you'll need a digital wallet that supports Web 3.0, such as MetaMask, Ledger or an alternative of your preference.

This will allow you to connect your digital assets to Lido’s platform.

Supported Wallets

MetaMask / WalletConnect / Coinbase Wallet / Ledger/ Trust Wallet / imToken / Ambire / Blockchain.com / ZenGo / Zerion / Exodus / Brave / Coin98 / MathWallet / Tally / GameStop / XDEFI

Contracts

LDO (Ethereum): 0x5a98fcbea516cf06857215779fd812ca3bef1b32

LDO (Arbitrum): 0x13ad51ed4f1b7e9dc168d8a00cb3f4ddd85efa60

LDO (Polygon): 0xc3c7d422809852031b44ab29eec9f1eff2a58756

LDO (Optimism): 0xfdb794692724153d1488ccdbe0c56c252596735f

Platform Functions

Liquid Ethereum Staking

"Stake Ethereum" button allows users to connect their wallets and stake their ETH with Lido Finance, view their staking history and details, and manage their staking preferences.

Scorecard website is designed to promote transparency and accountability by providing users with access to real-time data on Lido Finance's performance against its key objectives. This helps users to make more informed decisions about staking with Lido Finance and provides greater confidence and trust in the platform's security and reliability. It is designed to track the platform's performance against its key objectives of being decentralized, trustless, governance-minimized, and ethos-aligned with the Ethereum community.

Rewards Calculator is designed for stakers to calculate their staking rewards with a calculator tool, with which you can simulate a staking process and see how much you would get in return for staking X amount of ETH. The useful data here are: Lido rewards, monthly rewards and yearly rewards.

In the "Stake Ethereum button" section, as stated above, users can stake their ETH with Lido Finance and earn rewards for their staking activity. The website provides an intuitive and user-friendly interface that allows users to connect their wallets and stake their ETH directly from their preferred wallet.

Available to Stake shows you how much ether you can stake at this moment. You cannot stake over the global staking limit, and the global limit goes down with each deposit but is passively restored on each block. You can read more about this on Staking rate limits.

Staked Amount shows the amount of ETH you have deposited and staked on the platform.

Lido APR = the moving average APR for a 7-day period.

Liquid Ethereum Staking
Lido

Where to Put Tokens

First, go to the Stake Ether page and click “Connect Wallet”. When you are shown the wallet options, choose your preferred option.

Connect wallet
Lido
Approving connection
Lido

If you have followed these steps, your wallet is now ready to interact with Lido’s platform and you should be able to view your ETH balance within the Lido widget.

Now, you are ready to enter the amount of ETH you want to stake. When you are ready, click “Stake”. Note that you will be able to view your Transaction Fee, stETH Balance and Annual Percentage Rate (APR) prior to submitting.

After that, confirm the transaction in your wallet.

Now that you have confirmed, your wallet will now contain the amount of ETH you staked - in stETH - in your wallet. Your stETH balance will be updated daily to reflect staking rewards.

Staking with Lido
Lido
At the time of writing this article, staking with ETH was temporarily not possible as of February 25, 2023, as the platform broke the Daily Inflow Record. In other words, the protocol experienced a breach of staking limit due to Justin Sun's 150,100 staked ETH, ahead of the Ethereum Shanghai upgrade. You can read more about this event in this article. We also recommend you read about staking rate limits.
Stake limit exhausted
Lido

Sources

Analyst Opinion

Lido Finance is a popular decentralized staking service for Ethereum and other L1 and L2 networks that provides a seamless, user-friendly staking experience for users. The website has a clean, intuitive design that is easy to navigate, making it ideal for beginners who want to learn more about staking. The website provides a range of educational resources, including an FAQ section and links to external resources, to help users better understand how staking works and how to use the Lido Finance platform.

One of the most attractive features of Lido Finance is its Rewards Calculator, which allows users to estimate their potential rewards for staking with Lido Finance. This can be particularly useful for novice investors who are new to staking and want to better understand the rewards they can expect to earn.

Overall, Lido Finance is a convenient and reliable option for stakers who want to earn staking rewards in a non-custodial and decentralized way. Its user-friendly platform and educational resources make it an attractive option for novice investors who want to start staking on Ethereum and/or other L1 and L2 networks.

Peter Nemcok