Lido (LDO) Staking: Calculator, Yield, Rewards & APY | Everstake

Liquid staking allows users to get staking rewards while utilizing the benefits of a liquid representation of their stake. For example, the liquid equivalent of ETH within the Lido protocol is stETH.

So liquid staking protocols allow users to get staking rewards without locking assets or maintaining staking infrastructure. Users can deposit tokens and receive tradable liquid tokens in return. The DAO-controlled smart contract stakes these tokens using elected staking providers.

As users' funds are controlled by the DAO, staking providers never have direct access to the users' assets.

While each network works differently, generally, the Lido protocols batch user tokens to stake with validators and route the staking packages to network staking contracts. Users mint amounts of st[token] which correspond to the amount of tokens sent as stake and they receive staking rewards. When they unstake, they burn the st[token] to initiate the network-specific withdrawal process to withdraw the balance of stake and rewards.

Let’s consider how Lido liquid staking works with the example of the Ethereum network. When staking with Lido, users receive stETH tokens on a 1:1 basis representing their staked ETH. stETH can be used like regular ETH to earn yields and lending rewards and are updated daily to reflect your ETH staking rewards, minus any penalties.  

When using Lido, users receive secure staking rewards in real-time, allowing for participation in securing Ethereum with fewer associated risks and less downside potential.

Learn more here.

The Node Operators (NOs) are entities who run validators on behalf of the protocol and receive fees in return. They manage a reliable, stable and secure infrastructure for operating nodes to benefit from the protocol. Within Lido, the Node Operators are professional staking providers who can ensure the safety of funds belonging to the protocol users and the correctness of validator operations. 

Thus, Everstake is one of the trusted validators who runs validator nodes and participates in the Lido governance. Everstake is the biggest decentralized staking provider in the blockchain industry, trusted by 735,000 users. We have used enterprise-level hardware to run nodes for the most popular PoS blockchains since 2018.

All the Node Operators can be seen on the Lido Node Operator Dashboard.

Yes, it has – LDO. It is an Ethereum token granting governance rights in the Lido DAO. The Lido DAO governs a set of liquid staking protocols, decides on key protocol parameters (e.g., fees) and evolution, and executes protocol upgrades to ensure efficiency and stability.

By holding the LDO token, one is granted voting rights within the Lido DAO. The more LDO locked in a user’s voting contract, the greater the decision-making power the voter gets.

Currently, you cannot stake LDO. However, you can provide LDO as liquidity in respective liquidity mining programs (e.g., SushiSwap, 1inch).

For more details, see the Lido DAO token (LDO) section on the Lido website.

Currently, Lido supports liquid staking only on Ethereum. If you want to learn more about it, please see the dedicated page on our website.

The Lido team has created step-by-step guides. Check it via the link.

Absolutely. Lido is non-custodial middleware; thus, delegating your tokens is entirely safe. Your tokens always remain under your control and are accessible to you at any time. However, you must be aware of the risks liquid staking may impose (for more details, please check our article on liquid and traditional staking comparison).

Connecting your wallet doesn't involve sending transactions; it simply provides the website with your wallet's public address and enables it to request actions from your wallet. You, as a user, must manually approve these actions.

The protocol applies a 10% fee on staking rewards for ETH. This fee is split between node operators and the Lido DAO. That means the users receive 90% of the staking rewards returned by the networks.

stETH can be used across a growing Web3 ecosystem. Explore apps and services integrated with stETH.

There are multiple coverage providers with different products for stETH:

• Bridge Mutual
• Idle Finance
• Ribbon Finance
• Chainproof

Check with providers for coverage and conditions.

The mechanism which updates the stETH balances every day is called a “rebase”.

stETH is a rebasing token because its supply is adjusted on a daily basis to accurately reflect the amount of ETH staked through the Lido middleware and any accrued rewards and/or slashing events that might have occurred. To maintain transparency and ensure each user's stETH accurately represents their proportionate participation, a daily rebasing mechanism is employed.

wstETH is a wrapped version of stETH that does not undergo daily rebases. While stETH's token balance changes daily to reflect each user’s portion of the staked ETH and network rewards, wstETH does not change and maintains the same token balance.

There are two primary reasons to hold wstETH over stETH:

• Compatibility. Certain blockchains, dApps and services cannot technically support rebasing tokens. In such cases, wstETH offers a suitable alternative that can be utilized within these ecosystems without encountering compatibility issues.
• Consistent balance. For users who prefer a consistent token balance without daily rebases, wstETH provides a viable alternative. By holding wstETH, users can participate in staking while maintaining the same token balance.

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