What problem does liquid staking actually solve?
wstETH is a wrapped version of stETH: the amount you hold stays the same, while staking rewards gradually increase the amount of stETH that wstETH can be exchanged for. Lido’s stETH balance adjusts daily based on staking rewards; this mechanism is called a rebase.
The secondary-market price of an LST may differ from the price of the corresponding ETH: redeeming through the protocol means joining a queue, and when many people are in a hurry to exit, the price can easily trade at a discount.
Lido, behind $LDO , introduced liquid staking tokens such as stETH. Currently 0.3022.
wstETH is a wrapped version of stETH: the amount you hold stays the same, while staking rewards gradually increase the amount of stETH that wstETH can be exchanged for. Lido’s stETH balance adjusts daily based on staking rewards; this mechanism is called a rebase.
The secondary-market price of an LST may differ from the price of the corresponding ETH: redeeming through the protocol means joining a queue, and when many people are in a hurry to exit, the price can easily trade at a discount.
Lido, behind $LDO , introduced liquid staking tokens such as stETH. Currently 0.3022.
