---
description: >-
  Lido Staking is a decentralized finance (DeFi) project that enables users to
  stake their Ethereum (ETH) while receiving liquid staked Ethereum (stETH)
  tokens in
---

# Lido Staking | Lido - Liquid Staking for Digital Tokens



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Lido Staking is a decentralized finance (DeFi) project that enables users to stake their Ethereum (ETH) while receiving liquid staked Ethereum (stETH) tokens in return. Lido Finance provides a solution for users who want to participate in Ethereum staking but also desire liquidity to use their staked assets in various DeFi applications.

#### Key Features of Lido Staking:

1. **Staking ETH:**
   * Users can stake their ETH with Lido by sending it to the Lido staking pool.
2. **Issuance of stETH:**
   * In return for staking ETH, users receive stETH tokens. Each stETH token represents a share in the total staked ETH pool.
3. **Liquidity:**
   * stETH is a liquid token, meaning users can trade or use it in decentralized finance applications while still earning staking rewards.
4. **Staking Rewards:**
   * Users earn staking rewards in the form of additional stETH. These rewards are a result of the staking activities carried out by the Lido protocol.
5. **Node Operators:**
   * Lido relies on a network of node operators who run validator nodes and participate in the Ethereum staking process. These node operators contribute to securing the Ethereum network.
6. **Decentralized Governance:**
   * Lido Finance may have a governance token (LDO) that allows holders to participate in the decision-making processes of the protocol. Governance tokens are often used to vote on proposals and upgrades to the protocol.
7. **Integration with DeFi:**
   * stETH can be used in various decentralized finance applications, including lending, borrowing, and trading on decentralized exchanges.

#### How Lido Staking Works:

1. **Stake ETH:**
   * Users send their ETH to the Lido staking pool to participate in the Ethereum staking process.
2. **Receive stETH:**
   * In return for staking, users receive stETH tokens, representing their share of the total staked ETH pool.
3. **Liquid and Tradable:**
   * Users can trade stETH on decentralized exchanges or use it in various DeFi applications, taking advantage of its liquidity.
4. **Accrue Staking Rewards:**
   * Users continuously earn staking rewards, increasing their stETH balance over time.
5. **Participate in Governance:**
   * Holders of the governance token (LDO) may participate in the governance of the Lido protocol, voting on proposals and decisions related to the platform's development.
6. **Security and Risks:**
   * Users should be aware of the risks associated with staking and DeFi platforms. While staking generally involves less risk than some other DeFi activities, there are still considerations such as smart contract vulnerabilities and market risks.

As with any DeFi project, it's crucial to conduct thorough research, understand the associated risks, and stay informed about the latest developments. Always use caution and only participate with funds you can afford to lose. Check the official Lido Finance website and community channels for the most up-to-date information.

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