Lido Staked Ethereum
Lido Staked Ethereum (stETH) is a token that represents staked Ethereum in Lido, combining the value of the initial deposit and staking rewards. stETH tokens are minted upon deposit and burned when redeemed. 
Users who stake with Lido receive stETH tokens in a 1:1 ratio to their initial stake. stETH balances can be used like ETH to earn and lend rewards, and are updated daily to reflect ETH staking rewards. There are no lock-ups or minimum deposits when staking with Lido. Users receive real-time staking rewards and can use staked tokens to compound rewards across the DeFi ecosystem. 
stETH was launched in 2020 in anticipation of Ethereum Merge with its proof of stake consensus mechanism. It functions as a liquidity token, enabling users to deposit their ETH into a smart contract on the Lido blockchain and receive an equal amount of stETH to be traded, exchanged, borrowed against, or used for other liquidity purposes. 
stETH token balances daily when the oracle reports changes in Eth2 deposits and changes in ETH rewards from users who stake via Lido. Users who hold stETH will not see a transaction sent to their wallet because the rewards are embodied through a balance rebase.
Rather, users see their stETH balance automatically change without an accompanying transaction taking place. Rebase only works across integrated DeFi platforms - Curve and Yearn. Providing stETH as liquidity across UniSwap, 1inch and SushiSwap may result in losing out on a portion of the daily staking rewards because these platforms are not designed for rebasable tokens. ETH deposited via Lido is split between node operators and sent to their respective validators. 
Users who stake their ETH with Lido receive daily rewards in form of stETH balance rebases. These rebases affect all holders of stETH, regardless of whether their ETH has been deposited in the queue. 
Lido staked ether (stETH) has several use cases because it is designed to take the place of staked ether (ETH).
Lending platforms e.g. Aave enable users to wrap their stETH and other cryptocurrencies to use as loans. The lending value is determined by the wrapped token, which is based on the underlying value of the staked token.
Lido Staked Ethereum
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