How does Lido stETH work?

Could you please explain how Lido stETH operates? I'm interested in understanding its underlying mechanisms and how it fits into the larger cryptocurrency and finance landscape. I've heard about its staking capabilities and potential yield generation, but I'd like a more detailed breakdown of how it all works. Could you also discuss any risks or considerations that investors should be aware of when considering Lido stETH? Thank you for your assistance in clarifying this topic.