Lido Staked ETH
Crypto Overview
Purpose and Utility
Lido Staked ETH (stETH) is a liquid staking token that represents staked ETH in the Ethereum 2.0 beacon chain. When users stake ETH through Lido, they receive stETH tokens in a 1:1 ratio. These tokens can be traded, used in DeFi protocols, or held while earning staking rewards.
Business Model and Operations
Lido operates as a liquid staking protocol that allows users to participate in Ethereum staking without maintaining their own validator infrastructure or meeting the 32 ETH minimum requirement. The protocol maintains a network of professional validators who handle the technical aspects of staking.
Real-World Adoption
As of 2024, Lido is the largest liquid staking protocol with over $20 billion in Total Value Locked (TVL). It controls approximately 32% of all staked ETH in the Ethereum network. stETH has significant integration across major DeFi platforms and centralized exchanges.
Platform Development
Lido maintains active development with regular protocol upgrades, security improvements, and feature additions. The protocol is governed by LDO token holders through a DAO structure, with transparent decision-making processes.
Token Distribution and Governance
The stETH token is minted when users deposit ETH and burned when they withdraw. There is no pre-mine or founder allocation of stETH tokens, as they are purely representative of staked ETH.
Crypto Impact
To assign a comfort level investing in Lido Staked ETH from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Lido Staked ETH.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.