Introduction

What is LIDO

Lido is a liquid staking solution for proof-of-stake (POS) blockchains, aggregating node operator partners who run the underlying validator infrastructure on the Ethereum, Solana, etc. Several networks are working on this platform including Ethereum, Polygon, Solana, Kusama, and Polkadot. Ethereum is the network that I want to focus on it in this article. Lido lets you stake ETH to earn daily rewards. The present APR for Ethereum staking on LIDO is 4.0 %.

Summary

In summary, Two main issues were addressed in this article:

1- Identifying the accounts that have staked Eth on the lido platform.

2- Investigating the behavior of these wallets with their rewards (stETH)

On the first issue, I found out that most stakers have staked Ethereum at prices above $ 1500. As for the second issue, the result was that most of the stakers have held their stETH and have not sold, and only a small part of them sold their stETH.

What are we looking for?

The answer to this question is quite clear. We are looking for users who have staked their Ethereum on this platform. In the next step, we want to know what these users did after staking Ethereum and receiving stETH, whether they sold it or hold it.

Identifying Ethereum stakers

The below table reveals the ETH stakers in Lido platform. This table classifies all stakers into two groups; the first group is stakers who have staked Eth in prices lower than 1500 $, while the second group has staked Eth in prices higher than 1500 $. The reason for choosing 1500 is the present price of Eth. As you can see just about 2000 wallets staked their Eth in lower prices and the majority of users (63000 different wallets) staked in higher prices.

Identify the behavior of ETH stakers

At this point, I intend to follow the behavior of the Eth stakers after they took their reward (stETH). Based on the data shown in the chart below, most stakers still hold their stETH and have not sold them yet. However, a small number of wallets (below twenty percent) have emptied their wallets. It should be noted that emptying the wallets of these people does not mean that they have taken out all the stETH immediately, but some of them have had them in their account for several months, but now they no longer own them.

The next chart illustrates the distribution of daily stakers vs Eth price. It shows that the majority of stakers staked Eth at higher prices.