Lido Staked ETH (STETH) Price

stETH is a token that represents Ether that has been staked in Lido. Lido is a liquid staking solution that allows ETH holders to stake their assets without having to go through the complexities of running their own validator node. Lido pools the funds of multiple users and stakes them on the Ethereum 2.0 network, providing users with staking rewards in return.

When an investor deposits ether into Lido, they receive stETH tokens in return. stETH tokens are minted upon deposit and burned when redeemed. The token balances are issued 1:1 to the ethers that are staked by Lido. This means that each stETH token represents a specific amount of staked ether.

One of the unique features of stETH is that its balances are updated every day. This is done through a mechanism called a "rebase". Every day at 12 PM UTC, the amount of stETH in an investor's address will increase by the current annual percentage rate (APR).

The APR is determined by the total amount of staked ether in Lido. This means that as more ether is staked in Lido, the APR increases, and investors holding stETH tokens will receive higher staking rewards.

The rebase mechanism ensures that the value of stETH is always proportional to the value of the staked ether. This means that stETH holders will always benefit from the same returns as if they were staking ether directly, without having to go through the hassle of staking themselves.

One of the core benefits of stETH is that it allows investors to earn staking rewards without having to stake their own assets. This is especially useful for investors who may not have the technical knowledge or resources to run their own validator node.

Another prominent feature of stETH is that it is fully liquid. This means that investors can use their stETH tokens for their needs at any time. They can trade, sell, exchange, or invest in DeFi projects using their stETH tokens. This provides investors with greater flexibility and liquidity compared to staking ether directly, which is usually locked up for a certain period of time.