Introduction

How does ETH staking Work?

When you stake Ethereum, you're tying your coins up until the upgrade is complete, which could be 2023 or beyond. When you stake other cryptos, you might have to commit your coins for a month, sometimes more. But with Ethereum staking, you might not be able to access your assets for over a year.

What is Lido?

Lido lets you use your staked assets to gain yield on top of yield. Use your tokens (which earn daily staking rewards) as collateral, for lending, yield farming and more.Lido is the market leader for Ethereum liquid staking, representing over 80% of market share in that space, recent estimates show. In addition to stETH, lido is expanding to other proof of stake tokens like stLUNA.

Methodology

• We will look catigoize users by the price of eth when they deposited it into Lido.

• We will look to see how likely these diffrent groups of depositors are to sell or hold their stETH tokens.

Observations

• During the two large spikes of ETH deposits on to Lido the price of eth was between $2,500 and $4,000

• Less than 7% of all ETH deposited into Lido was deposited at ETH over $4,000

Conclusion

• Users who deposited ETH into Lido at lower prices are more likely to sell their stETH than users who deposited eth at a much higher price.

• In each category over between 33% and 66% percent of users helt their deposited stETH.