Introduction

How does ETH staking Work?

When you stake Ethereum, you're tying your coins up until the upgrade is complete, which could be 2023 or beyond. When you stake other cryptos, you might have to commit your coins for a month, sometimes more. But with Ethereum staking, you might not be able to access your assets for over a year.

What is Lido?

Lido lets you use your staked assets to gain yield on top of yield. Use your tokens (which earn daily staking rewards) as collateral, for lending, yield farming and more.Lido is the market leader for Ethereum liquid staking, representing over 80% of market share in that space, recent estimates show. In addition to stETH, lido is expanding to other proof of stake tokens like stLUNA.

Methodology

• We will look at the the price diffrences between stETH and ETH Over Time.

• We will look to see how the diffrence in price between stETH and ETH corrilated to The price of ETH and the pice of gas on ETH.

stETH - ETH Metrics

Observations

• The pice of stETH has fluxuated btween 1.02 and 0.955 ETH of the lifetime of the token .

• The price of stETH fell drasticall agains in March of 2021 and currently.

Observations

• The gas prices of ETH has been slightly downtrending in 2021 and does not seem to be correlated with the different in the price of stETH to ETH.

• There is a small correlation between the price of ETH and the price ratio od stETH to ETH.

Conclusion

The price of stETH drops against the price of ETH when people are lacking trust in lido or are fearful. People are more likely to be fearful when the price of ETH is dropping, but the two factors do not seem to have a correlation other than that. Adtioanlly the swappers and swap volume of the stETH pools do noe seem to be corrilated with the price either as thy are continaly growing.