Stake ETH and Earn Yield

Unleash the Power of Your ETH with Nash Wallet and Lido

Welcome to the first in a series of comprehensive posts, where we will dive deep into the universe of decentralized finance (DeFi) protocols. Our mission? To guide you on how to do more with your idle assets. 

Today, we're talking about how to stake ETH (Ethereum) using the Nash Wallet and WalletConnect V2 earn yield.

In the world of blockchain, your assets should never sleep. We're going to leverage the power of Lido, one of the most prominent liquid staking protocols, to earn yield north of 5% on your sleeping ETH through staking. Let's first illuminate the difference between “regular” and “liquid” staking.

Traditional staking of Ethereum is not only complex but also requires significant capital. To participate, you need to lock up at least 32 ETH - an amount not everyone can afford to set aside. Enter Lido, the DeFi game-changer.

Lido resolves the staking conundrum by creating a unique platform where any amount of ETH can be locked into a staking pool, while simultaneously maintaining its liquidity. This ingenious solution is brought to life through smart contracts and Lido's token, stETH, marking the birth of liquid staking of Ethereum.

How does it work? Essentially, stETH is your staked ETH's alter ego on Lido. You can use it just like you'd use ETH, especially within the DeFi ecosystem, all while your original ETH is busily earning staking rewards. 

For every ETH you stake on Lido, you'll receive an equivalent in stETH. These balances update daily, reflecting your accruing rewards. As the magic happens during balance rebase, stETH holders will see an increase in their wallet balance - no accompanying transaction needed, pure, effortless growth and rewards earned!

If we peek at the Lido website, we can gauge some useful statistics. One vital figure is the current APR, a 7-day moving average, currently sitting at 4%. Although it may vary depending on the number of participants in the network, the number of validators, or value of staked assets , it's reassuring to note that the average over the past year has an attractive interest rate that hovers around 6%.

Lido's community is also thriving, boasting over 200,000 unique stakers who have locked in more than 14 billion dollars' worth of ETH. It's proof that liquid staking has truly found its place in the DeFi world.

stETH, Lido's token, is backed 1:1 with staked ETH, meaning it does not negatively impact ETH’s value. The exchange rate reflects the secondary market price, not the inherent value of stETH. You can redeem an equal amount of ETH that you staked, creating a safe and stable environment for your assets.

stETH's versatility makes it a powerful tool in DeFi, compatible with major platforms like Curve, Aave, and Uniswap. Feel free to sell it, spend it, or use it as collateral. You can even convert it to stablecoins, or more traditional ETH, all from within your Nash Wallet.

Here is a quick video tutorial on how to stake your ETH on Lido, using Nash Wallet.

Prerequsite:
-> ETH to stake

And there you have it! With just a few clicks, your sleeping ETH transforms into a yield-generating machine, thanks to the Nash Wallet, WalletConnect V2, and Lido. 

Stay tuned as we journey further into the DeFi space, bringing you strategies, insights, and opportunities to make your digital assets work harder for you. Until next time, happy staking!

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