The Lido Finance Ethereum Liquid Staking Protocol, built on Ethereum 2.0's Beacon chain, allows their users to earn staking rewards on the Beacon chain without locking Ether or maintaining staking infrastructure.
😕 If you don't know staking or liquid staking, you can take a brief understanding of it from here
Users can deposit Ether to the Lido smart contract and receive stETH tokens in return. The smart contract then stakes tokens with the DAO-picked node operators. Users' deposited funds are pooled by the DAO, node operators never have direct access to the users' assets.
For example, a user could deposit ETH to the Lido staking pool and receive stETH (staked ETH) tokens in return, then deposit the stETH to Aave to earn yield. Essentially, liquid staking builds upon existing staking systems by unlocking liquidity for staked tokens.
Unlike staked ether, the stETH token is free from the limitations associated with a lack of liquidity and can be transferred at any time. The stETH token balance corresponds to the amount of Beacon chain Ether that the holder could withdraw if state transitions were enabled right now in the Ethereum 2.0 network.
Currently they have the option to stake ETH and MATIC.
Let me know if you know any similar DAAPs.
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