Lido is a platform that enables users to earn interest on their digital assets by staking them while keeping them liquid for use in other DeFi applications. It was initially launched on Ethereum in 2020, allowing users to stake ETH to receive STETH, a token that represents staked ETH in Lido. STETH is not only where the value of the initial deposit and staking rewards are combined, but also can be used to maximize yield through collateralization, lending, yield farming, and other DeFi protocols.
STETH tokens are minted upon deposit and burned when redeemed, and balances are issued 1:1 to the ethers that are staked. STETH balances are updated through a daily “rebase” mechanism, and can be used like ETH, allowing users to earn Ethereum staking rewards while benefiting from yields across DeFi products. STETH tokens are fully liquid and can be used for trading, selling, exchanging, and investing in DeFi projects.
STETH does not have a total supply. Its circulating supply is 6,079,538.
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