Introduction

What is Lido?

Lido is a user-friendly, decentralized staking solution that lowers the barriers to entry for staking. It enables you to stake even a fraction of an ETH on Ethereum 2.0 and earn a passive income.

Furthermore, it takes away the pain of understanding the technicalities or keeping your system running 24×7. To make things better, Lido offers Liquid Staking to solve the liquidity problem in traditional staking explained above. As part of this, Lido offers you another ERC20 token stETH on a 1:1 basis for the ETH you stake. And just like your ETH, you can trade and transfer your stETH across decentralized finance protocols.

Once you stake your ETH on Lido, you’ll be eligible for ETH rewards proportional to the size of your stake compared to the total staked ETH.

Now, you also know why a platform like Lido matters. It makes it easier for you to participate in Ethereum’s operation. It makes Ethereum more inclusive and decentralized. And this inclusivity opens doors for you to add a passive income stream. Win-win.

Why stake with Lido?

You may already be asking yourself, why Lido? Why not the myriad of other platforms offering staking services?

True. Many other platforms like Coinbase and Binance offer staking services. You can stake any small amount of ETH on those platforms too. The best part seems to be that you don’t have to integrate an external wallet because these platforms already hold your cryptos in their wallets.

Now, read that again… that’s exactly where the problem lies.

Crypto is all about ownership, decentralization, and security. But when you use a centralized platform, you put all of that at stake along with your cryptos. You trust a centralized platform with your assets. You give them the ultimate control.

It doesn’t seem like a good idea, does it? We know you love your cryptos and you’d rather keep its control in your hands than give it to some centralized entity.

That’s why a decentralized platform like Lido is the best way to stake your cryptos. It empowers you to stake and earn a passive income without giving up control over your funds.

In the chart below we see the price of two stETH and ETH currencies.As you can see, there is a strong correlation between the prices of these two currencies so the price difference between the two currencies is only a few dollars

In this diagram that corresponds to add liquidity. This chart does not show much correlation unlike the previous chart

Conclusion

As you can see, there is a strong correlation between the prices of these two currencies .One of the main reasons for this correlation is that users usually swap these two currencies for each other, and this does not make much difference between their prices and if one day this balance fails, there may be a big difference between the two currencies

Thanks for reading

All data used are from Flipside Crypto.
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