The amount of Ethereum in ETH 2.0 has come to 2.8 million ETH. This amount currently amounts to around $ 3.6 billion and generates an annual return of 9.3% on ETH 2.0. The amount gradually increased just a few weeks after it was first released in December.
The Kraken-managed staking service remains one of the largest depositors, but now there is great competition in smart contract-based staking.
Lido stands out with new stETH token
Lido recently hit the market by basically connecting staked ETH to a freely usable stETH token. The statement made by Lido includes the following statements:
“When using Lido to deposit your ETH into the Ethereum sign chain, users will receive a token (stETH) representing their ETH on the Ethereum sign chain on a 1: 1 basis. Effectively, we serve as a bridge that brings ETH 2.0’s staking rewards to ETH 1.0. ”
As a user’s share ETH generates rewards from ETH 2.0, the user’s ETH balance in the sign chain will increase. StETH balances will be properly updated once a day, allowing you to access the value of your staking rewards received in ETH 2.0 at ETH 1.0.
Users can use stETH in any way they can use ETH: such as selling, spending and using it as collateral for lending on the chain as it is suitable for use in DeFi … When transactions are enabled in ETH 2.0, users can also use stETH for ETH.
Therefore, this service allows you to earn around 10% staking returns and even sell your staked eth, which also tends to be discounted.
Or you can use this ETH as collateral with a new Yearn strategy where you can deposit ETH staked on Curve to earn CRV as well as your Lido (LDO) tokens. Thus, you can combine your earnings effectively as you earn both 10% staking efficiency and CRV and LDO tokens.
Lido claims that close to 100,000 meat worth $ 127 million has been shared with them so far, and the platform is making its debut this month. Therefore, the amount of ETH staked will likely continue to increase.