Originally launched in 2015, it later transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism, reducing energy consumption and enhancing network security. Users pay for network transactions with Ether (ETH), which also serves as a reward for validators. The platform’s smart contracts power a wide range of use cases, from decentralized finance (DeFi) to digital collectibles.

What is ETH?

Ether (ETH) is the native cryptocurrency on the Ethereum blockchain and is needed to pay “gas” fees, which are the costs required to execute transactions and smart contracts. It also serves as a reward for validators who help secure the network by verifying new blocks

What is stETH?

Lido staked ETH (stETH) is a liquid staking solution representing ETH staked through the Lido protocol. In contrast, validators who exit their staking position must go through an unbonding period before regaining access to their ETH. The stETH token can be traded or used in decentralized finance (DeFi) applications, ensuring that stakers retain liquidity even while securing the network. This approach mitigates the typical illiquidity constraints of direct staking and provides an avenue to participate in various on-chain opportunities.

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