What is Steth & how does it work?

Staked ether, or stETH, is a cryptocurrency token that represents an equivalent amount of ether (ETH) that has been staked. Staked tokens are locked up for an extended period to provide liquidity for staked ether. In the case of stETH, ether (ETH) tokens are staked until the Shanghai upgrade is implemented.

What is Steth & Lido?

What Is stETH? StETH is a derivative of ETH that is staked on Lido. Lido is a decentralized protocol allowing users to stake ETH and participate in the consensus mechanism of Ethereum. Staking helps to secure the Ethereum network under a proof-of-stake consensus mechanism, which is more energy-efficient and scalable.

What is the supply of Steth?

The supply of stETH tracks the number of ETH deposited into the Lido contract. The total supply of stETH can be tracked via the token contract address. At the time of writing, the supply of stETH is 6,056,183.

What are Steth tokens?

The stETH tokens represent both the initial deposit and the rewards earned by staking. The balance of stETH tokens increases over time as more ETH is generated through staking.