In traditional staking, your ETH is locked. You earn rewards, but you can’t use the funds elsewhere until the network allows withdrawals, which can take months. This lack of flexibility limits users who want to stay active in DeFi while staking.
Lido changes that.
When you stake ETH via Lido, you receive stETH (staked ETH) in return. stETH represents your staked position and accrues rewards automatically. More importantly, stETH is liquid—you can use it in decentralized exchanges, lending platforms, and yield farming protocols while still earning staking rewards.
This dual benefit—earning yield while maintaining liquidity—is why Lido dominates the staking space. As of 2025, Lido secures billions in staked assets and is widely integrated across DeFi ecosystems.
Lido also removes the need to run your own validator or meet the 32 ETH requirement. You can stake any amount, making it beginner-friendly and capital-efficient.
Why it’s better:
- No lock-up period
- DeFi composability
- Automatic rewards
- Low barrier to entry