Try Quests to earn cryptoETH Staked
This analysis is a review on the ETH that has been staked in Lido.
Lido is a platform to participate in staking pools, which is fully decentralized and open source. This means that you can go to their GitHub (Lidofinance) and give a look at the code. There are no hidden features, everything written inside the repository is what makes Lido work. This is good because it gives users the security that nothing is hidden and that the developer community always reviews and fixes any bugs that are found.
Also, Lido's is a non-custodial platform, meaning that there is no centralized entity that controls the cryptocurrencies deposited in it. Everything is done through smart contracts, which are constantly reviewed and audited.
Finally, the characteristics and evolution of the protocol depend on the decisions of its community, made through its DAO. Lido sustains its operation thanks to two tokens, the LDO governance token and the ST tokens. We are going to explain their use and operation:
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LDO is the native token of the platform and its tokenomics depend on it. The token serves to support the voting and governance system of the protocol, two factors that affect the economic variables that the protocol applies to the staking pools it supports.
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ST tokens are tokens derived from the tokens that are supported by the protocol. For example, the Ethereum pool receives the user's Ethereum tokens, the protocol locks those tokens and gives the user the same number of stETH tokens.
In order to obtain how much ETH was staked with Lido, we have to use the Lido stETH contract address '0xae7ab96520de3a18e5e111b5eaab095312d7fe84', and filter by the amount sent from the address '0x0000000000000000000000000000000000000000'. The amount of stETH since its inception is 4.13M stETH.
Let's display the daily amount of ETH staked with Lido in the past 3 months.
During the last 3 months, the volume of staked ETH has been very volatile. The ATH (in the aforementioned period) was 197k daily sETH in March 15th. On the other hand, five days later the volume went down to 6k daily staked ETH. Since then, it has been fluctuating until May 12th, where we can see that it was the start of an almost non existent volume amount. To analyze what happened, let's chart the price of ETH and stETH along with its price variation.
Recently, Ethereum successfully deployed "The Merge" on the Ethereum Ropsten testnet. Nevertheless, the crash of Luna-Terra resulted in a huge volatility in many trading pairs, causing stETH to have a slight deviation compared to ETH. In the chart we can observe that on May 12th, the price variation between ETH and stETH started to increase, reaching a depeg level of almost 5%. One of the reasons why this happened is because of farmers deploying leveraged farming positions with this token as collateral.