Lido Staking Review and Rewards

Click here to explore ETH Staking with Lido! (Official Lido Referral Link)

Lido Staking Review

Lido is a liquid staking solution for ETH 2.0 backed by industry-leading staking providers. Lido lets users stake their ETH – without locking assets or maintaining infrastructure – whilst participating in on-chain activities, e.g. lending.

When staking with Lido, users receive staked ETH (stETH) in return. StETH represents the value of your initial staking deposit plus daily staking rewards, increasing in balance daily as rewards come in. These stETH balances can be used like regular ETH to earn yields and lending rewards.

There is no lockup period when staking with Lido, which is one of the main advantages. This is unlike many other staking services, be it on Coinbase, Kraken or staking 32 ETH as a validator. For those staking services, your ETH will be locked up until ETH 2.0 launches, which may be in a few years’ time.

We can see that the current APR is 5.4%. Lido’s stETH market cap is very high, at more than $2 billion.

Lido Staking Rewards

At the point of writing this (August 2021), the Lido Staking Reward is 5.4% APR. This is very competitive considering Coinbase’s APR is only 5%. Do note that as more people stake Ether, the APR may decrease (this is controlled on Ethereum’s side, it is not controlled by Lido).

Lido Staking rewards are paid in stETH, which represents the value of your initial staking deposit plus staking rewards. Do note that stETH can be further deposited into DeFi protocols like Curve Finance for further yield. Currently, the Curve Finance pool gives a whopping ~12% APY paid in a mixture of tokens like (ETH, stETH, CRV and LDO).

The stETH pool on Curve Finance gives up to ~12% additional rewards!

Lido Staking Reddit

You may want to check out the Lido Staking Reddit (https://www.reddit.com/r/LidoFinance/) to see what other users say about Lido Staking!

Lido Staking Ledger

Many Crypto Hodlers hold their ETH in a hardware wallet like Ledger. The way to stake ETH on Lido using Ledger, is to first connect Lido to a software wallet like MetaMask. Then, connect the MetaMask wallet to Lido in order to perform staking.

Ledger Nano X – The Best Crypto Hardware Wallet – Bluetooth – Secure and Manage Your Bitcoin, Ethereum, ERC20 and Many Other Coins

Is Lido Staking safe?

With Cryptocurrency, there is always some risk, but here are 2 reasons why Lido Staking is considered safe:

  1. Lido has undergone multiple audits. You can see the list of their audits on GitHub.
  2. Lido uses a unique “distributed custody” solution in which the withdrawal key for all of the network’s validators has been split into 11 different parts secured by 11 different participants.

    The 11 participants include very big names in the crypto scene: Chorus One, Staking Facilities, Certus One, Argent, Banteg (yearn.finance), Alex Svanevik (Nansen), Anton Bukov (1inch), Michael Egorov (Curve/Nucypher), Rune Christensen (MakerDAO), Will Harborne (DeversiFi) and Mustafa Al-Bassam (LazyLedger).

Ready to stake with Lido?

If you have decided to stake with Lido, do check out the Lido Staking page where you can begin your ETH staking journey!


Disclaimer: The opinions on Lido Staking expressed in this blog post is for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide information on Lido Staking. In particular, this blog post is not a substitute for obtaining advice from a qualified investment advisor.