Skip to “How to Stake Ethereum with Lido” if you are already convinced that Lido is awesome!
W hether you have been buying and HODLing Ethereum , or mining Ethereum at scale, staking the ETH that you already have is an excellent way to boost your earnings.Staking with Lido at the current rate (4.8% APR) will double your Eth in less than 15 years!
Double your ETH in 15 years at Lido’s current reward rates! The Ethereum 2.0 upgrade — which will complete Eth’s transition from PoW (mining) to PoS (staking) is not yet complete, and most likely won’t be completed until 2023.But in August of 2021, the London Hard Fork enabled staking in an attempt to smooth the transition.
The current problem with staking ETH is that many exchanges and services that offer staking lock staked ETH away, with no way to retrieve it until the completion of the upgrade in 2023.This eliminates liquidity (the option to use or sell Ethereum) and greatly increases stakers’ incurred risk.
Fortunately, the geniuses over at Lido have implemented a way for anyone to stake Ethereum (or Terra or Solana) while maintaining some amount of liquidity.Best of all, you can stake ETH from the safety of the hardware or software wallet that you already use!
Disclaimer: I am not an accountant, but I have staked ETH using Lido.This article contains knowledge and thoughts from my experience with Lido.
How Lido Works (from a Staker’s Perspective) When you stake Ethereum with Lido, you are essentially using Ethereum to buy a “voucher” for staked Ethereum.This “voucher” is an ERC20 token known as “stETH,” and its value is pegged approximately 1:1 with the value of Ethereum.
Send any amount of ETH to the Lido DAO contract, and receive an equal amount of freshly minted stETH tokens.To liquidate or use your staked ETH, just exchange your stETH for ETH on any supporting exchange.
I am currently earning an APR of 4.8% on my staked ETH.Staking rewards are paid out daily!
A few quick notes on staking with Lido :
Exchanging your ETH for stETH (or vice versa) costs gas fees, as it is an ERC20 transaction.The Lido staking transaction will look like an exchange with the Ethereum address: 0xae7ab96520de3a18e5e111b5eaab095312d7fe84 .Always m ake sure you verify the address you are sending tokens to! The value of stETH is said to be pegged approximately 1:1 with ETH, but here is the exact exchange rate .
Once the Ethereum 2.0 upgrade is complete, Lido plans to implement a method to exchange your stETH for ETH with them directly.For now, you can “sell” your stETH for ETH on an exchange.
Lido DAO places a 10% fee on your staking rewards .For example, the ETH staking reward is currently 5.2%, Lido keeps 10% of the 5.2% reward , so your effective reward is 4.7%.The rewards rate on the Lido site reflects your effective reward .How to Stake Ethereum with Lido Step 1: Go to the Lido Staking webpage.
(The link above is my referral.You lose nothing from using this referral, but I get a 1% kickback from your initial stake.)
Step 2: Select Connect wallet
Step 2 Step 3: Read and accept the terms of service, then select the wallet containing the ETH that you would like to stake.
Step 3 The next sections include instructions for staking with Metamask and Ledger wallets as those are what I have used in the past.I am sure that other wallets follow a very similar process.
Staking Eth via Metamask with Lido In order to complete the following steps, you must have the following:
Google Chrome with Metamask Extension Properly set up Ethereum Mainnet Metamask wallet containing ETH to stake Step 4: You may want to verify that your Metamask is set to the Ethereum Mainnet — the Lido webpage threw an error message when I had mine set to the incorrect network.
Step 4 — Metamask Step 5: Once you select Connect Wallet , a Metamask Notification should show up.Select the wallet you’d like to exchange from, select Next , and then Connect .
Step 5 — Metamask Wallet Step 6: If you have multiple wallets connected, you should verify that you select the correct wallet from the button in the upper right corner (I only have one connected here.
Step 6 — Metamask Wallet Step 7: Enter the amount of ETH you would like to stake and hit Sumbit .
Note the “transaction cost” — this is the gas fee required to execute the transaction on the Ethereum Mainnet.You can adjust the gas fees a little bit in the next step.
Step 7 — Metamask Wallet Step 8: A Metamask Notification window will pop up, and ask you to Confirm the transaction.If you’d like to edit the gas amounts, you can use the Edit link/button in the pop-up.
For this visual, I am fake staking 0.001 ETH, and receiving 0.001 stETH.I cannot confirm the transaction because this wallet lacks sufficient funds for the gas fees.Your button should be blue.
Step 8 — Metamask Wallet Step 9: Once the transaction is initiated by Metamask, the Lido webpage will show a notification that the transaction is awaiting block confirmation.You can select View on Etherscan to see the transaction status.It could take a bit for the transaction to be confirmed.
Step 9 — Metamask Wallet Step 10: Once the block is confirmed, you should be able to see your stETH tokens in your Metamask wallet (you may have to select Assets and then Refresh List to get them to show up), or at https://etherscan.io/ .
Step 10 — Metamask Wallet Staking Eth via Ledger Live with Lido Assumptions:
Ledger Nano S or Ledger Nano X hardware wallet (and USB cable) Properly set up Ethereum Mainnet Ledger hardware wallet containing ETH to stake Step 4: Connect your Ledger Nano S or X to your PC via USB cable, and unlock it using your pin.Make sure that you open the Ethereum App on your Ledger device.You may have to allow your browser to access your device the first time you set this up, otherwise, it should connect your wallet automatically.
Step 5: If you have multiple wallets connected, you should verify that you select the correct wallet from the button in the upper right corner (I only have one connected here.
Step 5— Ledger Hardware Wallet Step 6: Enter the amount of ETH you would like to stake and hit Sumbit .Note the “transaction cost” — this is the gas fee required to execute the transaction on the Ethereum Mainnet.
You can adjust the gas fees a little bit in the next step.
Step 6— Ledger Hardware Wallet Step 7: The Lido webpage will ask you to confirm your transaction on your Ledger device by pressing the buttons.
Step 7 — Ledger Hardware Wallet Step 8: Once the transaction is initiated, the Lido webpage will show a notification that the transaction is awaiting block confirmation.You can select View on Etherscan to see the transaction status.It could take a bit for the transaction to be confirmed.
Step 8— Ledger Hardware Wallet Step 9: You should be able to see your stETH in your wallet on the Ledger Live App, or at https://etherscan.io/ .
If you found that tutorial useful, follow me on Medium !
If you want to see more content like this, you can support me by using one or more of my affiliate links below:
Stake Ethereum via Lido Buy any Ledger Hardware Wallet Product Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing
Also, Read 7 Best Zero Fee Crypto Exchange Platforms Best Cardano Wallets | Bingbon Copy Trading 7 Top Copy Trading Platforms | BuyCoins Review MyConstant Review | 8 Best Swing Trading Bots Godex.io Review | Invity Review | BitForex Review 10 Best Books on Crypto | 5 Best Crypto Bots in the UK Koinly Review | Binaryx Review | Hodlnaut vs CakeDefi MoonXBT vs Bybit vs Binance | Hardware Wallets Huobi Trading Bot | How to buy ADA | Geco.One Review Binance vs Bitstamp | Bitpanda vs Coinbase vs Coinsbit.
