Lido Finance Staking Tutorial (stETH, stMATIC, stSOL, stDOT) #Finance

this CashNews.co is a Lido Finance tutorial we’re going to look at using the protocol a step-by-step guide on how to actually stake your coins on here and then some of the pros

and cons of doing it some of the things that you need to consider so I’ll leave all of the time stamps for all of those sections down in the description below so firstly what exactly is liquid staking and why would people use Lido you can of course stake coins directly on the blockchain that

is the most secure version of doing things so if you have some of these you can go and stake them but the problem is there’s lock-ups for these coins and some chains are much harder to stake than others for example on ethereum you need 32 eth if you want to run your own validator and

there’s a lock up as well there’s also a lock up on polygon Solana has a few days lock up I think and polygon has a lock up as well that means if you stake your coins they are there and you can’t use them you can’t sell them until they are unlocked that’s not great as

a user because we want Liquidity also we want to be able to use these coins on D5 so that we can earn extra Yields as well on them so Lido steps in and what they do is they do all of the background stuff for you they’ll go and stake your ethereum or

they’ll go and stake your polygonmatic but they also give you this secondary token which is known as a liquid staking derivative it’s called liquid because it is liquid it’s a token that actually accrues your staking rewards but because it’s not locked up you can actually go

ahead and trade those Assets online so you can get in and out of them really quickly there are no lock-ups and obviously 10 of those fees are passed to Lido for their job so liquid staking essentially just allows you Liquidity of those coins you can keep them in

your wallet you can trade in and out of them straight away and you don’t have any lock-ups and you can use them across D5 to get extra Yields so these are the supported coins right here and we’ll go through the supported wallets and how to actually go ahead and stake

them you’re going to be using the blockchain to do all of this so you’ll need to find the supported wallets the main wallet for each Crypto coin is going to be used but you can

actually go to stake now on each coin and then come down to the FAQs you’ll see which wallets are supported right here Phantom I would recommend for Solana the others probably metamask but any other ethereum baseball it’s going to work as well before I go through the guide though of

setting up that wallet and making sure everything is okay I need to tell you the difference between a rebasing token and a non-rebacing token depending on which token that you have it will either be rebasing or non-rebacing so with ethereum as an example that’s a rebaseable token what that

means is if you put one eth in here to stake and you hold it in your wallet over time you will be accruing those staking rewards currently at about 5.2 percent for ethereum which is great how do you actually get those Rewards well for staked ethereum it’s rebasing meaning that at the end of

the year you will have more staked tokens in your wallet so every day you’ll actually have a rebase and you’ll you will get more tokens that you can see in your wallet that’s how you accrue the staking rewards for other coins for example staked Matic it doesn’t rebase what

happens is the actual coin itself goes up in value to represent those staking rewards so it’s a kind of like a net asset value or nav style where your state Matic will actually increase in value so it might start at one for one but then over time it might be 1.05 1.1 right so it’ll get

more expensive with others it will be a rebase where you actually get more tokens you can see on the um each token you go to learn more it will tell you if it’s a rebase or non-rebase now there are some risks as well to using Lido which I’ll describe very quickly here that you

don’t get with staking directly the first is Dao the Lido has a dow and they can obviously vote to do things that may negatively affect you for example raising the percentage that they take of your staking rewards the second thing is validators they choose a set of validators for you and if

they do something wrong or go offline they could get slashed reducing your rewards but I think that is the same if you chose your own validator anyway in fact Lido run their own validators or they actually choose other validators as well and they can get something called Mev which is minor

extractable value certainly on ethereum and that can actually boost staking rewards so it’s kind of a give and take here the second thing is Market risk because each of these coins is a staked coin and it’s liquid it represents the other staking coin if there is a

Liquidity issue or something like that or for some other reason the market may actually have these staked coins fluctuate in price they should be one for one with the staking coin right but they might not be the staked coin may actually drop in value a little bit because of some

something that happened in the market so just to be aware of it actually happens more for ethereum because at the moment there’s a lock up with ethereum and so there could potentially be a Divergence between the staking price and the underlying price it should be one for one but sometimes the

staking coin may actually drop if there’s Liquidity issues or something like that in the market so depending on which coin that you have you’re going to want the wallet downloaded so I’ll quickly go through that for ethereum and the others it’s metamask for

Solana you’re going to want Phantom wallet for the most part so if you go to stake now you can see connect wallet up in the top right hand corner and then it will show you all the supported wallets I’m just going to show you with metamask here if you don’t have metamask or you

don’t know what that is I’ll leave tutorials in the description for you that go through uh downloading metamask so if you click download you can set up a wallet right there I would also recommend a hardware wallet like ledger so I’ll leave some links to tutorials for that and the

hardware while it’s in the description as well you’re gonna You’re Gonna Want a blockchain wallet and then just connect it up so you can connect that and then it will be right there for you where you can actually go ahead and you know submit your staking now for each coin

you’re going to have to have the underlying main coin to actually stake that’s sold for Solana ether ethereum so I’ll quickly show you how to get those into your wallet if you don’t know obviously we’re on the Lido site right here come to your exchange so whichever

exchange that you use you know coinbase binance private I’m going to show you buy bit here again just go ahead and buy the underlying coin that you’re going to need to stake so you know for ethereum just search for eth now some exchanges actually directly sell the liquid staking

derivatives and so you don’t even need to use Lido remember that liquid staking derivatives are essentially a separate coin that a cruise staking rewards so you don’t need to go and buy eth and then stake it with Lido you can just directly buy a staked eth and get those rewards now not

every exchange supports this by bit does I’ll leave a link to them in the in the description because for right now they’re giving zero fees on spot they actually give deposit bonuses as well I’ll leave some links to exchanges that do that in the description but right here you can

see steth so I can actually just directly buy a steak teeth on buy a bit and I don’t have to go through the rigmarole of getting eth transferring it to my wallet and then staking with Lido I can just buy it direct right here another really important thing to understand is that if you have a

liquid staking derivative on an exchange it may not accrue those staking rewards and so you need to withdraw it to your wallet so if you want to buy on an exchange like buy bit you can buy steak teeth directly right here just buy it and then go to withdraw and withdraw it to your wallet so you just

bring up your metamask and obviously get your wallet address here make sure that you’re on the ethereum mainnet you can very easily click copy and then obviously withdraw it just go through that process but then you just buy it directly on the exchange take it out to your wallet and you

accrue those staking rewards another thing to do is add the token address to your metamask or other wallet sometimes you can send coins to your wallet and it doesn’t show up and you you don’t know if it’s actually gone through so what you can do here is go to something like coin

gecko or coin market cap and search for the coin I’ll show you here with steak teeth again but every token just put St and then the token so St dot St soul you can see Lido State eth here so if you click on that on the right hand side you’ll see the contract address so you just want to

copy that here and then go to your metamask or coinbase wallet or whatever you have come down and click uh import tokens and then you just paste in the address here and it’ll add that token for you so then you can see any balances in your meta mask in case they don’t show up if you

can’t buy the stake test set directly on the exchange then let’s actually go ahead and use Lido For What It’s meant for which is staking the you know the base layer token so just come to the coin that you want to stake this is a very simple interface here you need some base layer

coin in in your wallet so I’ve got some ethereum here it’s just eth all you do is just max it out or however much that you want to stake and press submit it’s going to give you right here how much steak teeth that you’re going to get and the exchange rate it’s mostly

one for one but not always if you have a non-rebacing token it might be a bit more less right the transaction cost is going to tell you and you can see for steak teeth Lido take 10 of the staking rewards for their service now something really important as well is like I said you don’t need to

do this you can just go into the open market and buy the liquid staking derivative token um direct you don’t need to use Lido so I’ll show you that you can see for for eth actually it even tells us you can get a discount by going onto the one inch platform one inch is a exchange

aggregator so it gets the best price across you know different exchanges you actually get a better price if you just go ahead and buy the LSD directly rather than staking it through Lido so let’s just go through and see that press get discount we can go through to the one inch exchange right

here and all you do is press swap right um so we press swap now we want to sell eth because we have that token and we want to buy a state Thief so we’re just going to search for it St Ethan you can see that right here now sdeath is trading at a little bit of a discount as you can see one eth

gets you just over one steak teeth so if you have that you can go ahead and actually trade now again depending on gas fees at the time it might might cost you a little bit but it’s going to cost you gas fees on Lido anyways so for most of these tokens for most people it’s probably going

to be easier just to go ahead and buy them in the open market and also show you some other exchanges that you might want to use if you want to stake dot then Stellar swap is the native exchange there on the Moonbeam network not on the dot Network this links up with your metamask you can also use

radium for Seoul you can see here I can get so in my Phantom wallet link it up and just buy State sold directly and we also have curve Finance as well these are all dexes like leading dexes

for each chain you can actually choose the network but you can see down here there’s stachematic Matic so if you have Matic which is the polygon token you can swap that directly in for staked Matic because it’s all decentralized you’ll be accruing those rewards so you can either

to buy them you know directly on a decks or you can take them through Lido you can check the prices to see where where you’ll get the best deal so what if you want to unstake your coin and get the base layer coin back well again you can trade It On the Open Market really easily and as long as

the exchange rate is good then that’s great the other way the other way is to unlock through Lido that’s going to take a little bit longer you’re going to have to wait um for the unlocking period so depending on the coin that’s going to be different so that’s why

liquid staking derivatives are good because you can just trade them directly in the market and sell out of them back to the base layer coin or back to usdt or something like that but if we go to the Solana for example you can come up to the top it says steak right here you can just go to unstake

and as it says there’ll be a two to three day window where you have to unstake so that’s why trading those derivatives in the market is going to be easier you can trade it straight away but just watch out for the exchange rate because like I said it may fluctuate so make sure

you’re getting a good deal now with these staking derivatives another Advantage is that you can use them in D5 to to provide Liquidity and earn extra rewards on top of the staking rewards that you get this happens across all of these chains so I’ll quickly show you for

Solana they actually have a tab called Solana D5 right here and then what you can do is have Liquidity in staked soul and soul and provide it to a decks and you get trading fees from Traders you can see that stake Soul plus Soul right here is getting around 13 apy which is almost

double the apy that you’re getting off the staking derivative now there’s some things to know here firstly you want to make sure that the application that you’re using is trustworthy and it’s not giving you higher Yields because it’s some you know

random application that we don’t want to use also don’t get your head turned by very high Yields because there’s something called impermanent loss when you provide Liquidity and it can really eat away at your rewards even though the AP wire seems

high so what I would suggest is sticking to the two coins being the same thing remember soul and stake Soul are basically the same thing right and so their price isn’t going to fluctuate that much so you’re going to want to stick to Soul plus staked Soul so this one here um where you

see that that is where you’re going to want to add Liquidity now I’ve got some extra tutorials on this because it’s quite in depth about getting the right balance between each coin and providing Liquidity I’ll link them in the description if

you want to know more but this is definitely a very decent way of earning extra Yields on your staked coins but there are some things to consider so I’ll leave that for the CashNews.co that I link below that is liquid staking though it’s a little bit complex but there

are some very big positives to it as well all of the resources that I mentioned I’ll leave them in the description below I’m James with money CG cheers for watching and I’ll see you in the next one