Ethereum 2.0 launches tokenized staking
- Ethereum 2.0 records over 2.5 million staked tokens.
- Lido provides an opportunity for users to earn double staking rewards.
Over 2.5 million ETH tokens have been staked on Ethereum 2.0 for a reward that is over nine percent. This translates to $3.6 billion.
The stakes in Ethereum 2.0 have steadily risen since the week it was launched in December, with Kraken recording the highest number of depositors. However, smart contract-based staking has begun to provide sustainable competition against the exchange services company.
Lido allows users to stake Ethereum
A recent entrant into the field, Lido, made it known that its platform uses staked ETH assets to form a stETH token that can be freely used. According to its official statement, the stETH tokens would represent their ETH tokens on the Ethereum beacon chain, and it also acts as a bridge between ETH 1.0 and ETH 2.0. This means that this new platform effectively brings the staking rewards found on Ethereum 2.0 to Ethereum 1.0.
stETH can also be used the same way as the Ether token can be used. Users can either choose to sell, spend or even decide to use it as collateral on DeFi. And the intriguing aspect of this is that users would be able to redeem the staked ETH to real ETH tokens once transactions are enabled on ETH 2.0.
Staking on Lido would give users an opportunity for more rewards.
Automatically, a user has access to earning close to a ten percent reward while at the same time he can choose to sell the staked Ether token, which is mostly sold at a discount rate. With the new Yearn strategy’s availability, a user can also choose to use the staked Ethereum as collateral. This means that they would earn Lido tokens (LDO) plus CRV since the tokens would be staked on Curve.
Such users’ earnings double as they can earn the ten percent reward, plus they still can enjoy rewards of CRV and LDO tokens. The platform says it has recorded over 100,000 staked Ethereum tokens in this month alone.