Are you curious about Ethereum staking? This week’s DeFi.I.Y. As the network merges, this video demonstrates how to deposit on Lido Finance. Not everyone has 32 ETH to stake directly onto Beacon or Phase 0 in the network’s transition from Ethereum 2.0 to Ethereum 2.0.
Several projects were created to serve the needs of token holders who are smaller in size. They allow users to stake whatever amount they wish. You can also earn a little yield from these holdings.
RocketPool and Stafi are top services offering low-volume staking. Although the yields for each service are different, it is all fairly straightforward.
We’ll be looking at Lido because it has become the most used staking service. It hosts more than 32% (of the 12.7 million Ethereum staked on Beacon Chain), according to Dune Analytics. At current prices, Lido hosts $24.3 billion.
It is easy to stake Lido.
To start staking, click the “Stake Now” button. You can then choose from a variety of proof-of-stake network options, such as Solana or Kusama, Polygon and Ethereum’s Beacon Chain.
After you have selected Ethereum, you will be prompted to connect a Web3 account such as Coinbase Wallet or WalletConnect.
A warning: Don’t play with Aribtrum or Fantom if you haven’t switched to Ethereum Mainnet. These networks are not supported by Lido, so you could lose your funds permanently if Lido isn’t available.
This is how your screen should look:
This ticker, “stETH”, is for “staked Ethereum” and it’s what you will get after you deposit your Ethereum.
It acts as a receipt. It shows that you have ETH in Lido. However, it also allows you to put that stETH into crypto (like mining the stablecoin on Maker).
Because stETH attempts track the Ethereum price, it has real monetary value. According to Curve Financing, the staked Ethereum trades at a slight discount to its original Ethereum counterpart.
Once you have staked your account, you can’t stop there. For such an easy task, earning 4% is quite a good yield. This yield will increase once Ethereum finishes its upgrade , which is scheduled for August.
“Through the merger with the proof-of-stake chain, fees previously earned from miners will be transferred to those who staking. This will result in staking rewards ranging between 7% to 12%,” says Lucas Outumuro, IntoTheBlock.
This U.S. holiday weekend is a great opportunity to be ambitious.