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Using Lido

Centralized participation promotes rapid access and high liquidity, but carries the risk of strict “fine caps” and reduced overall compensation. Ethereum empowerment engaged in malicious behavior receives heavy fines and loses a significant amount of excited ether. You can also force the offender to be removed from the network.
Using Lido with some validators reduces the risk. “Nine active node operators [validators] have bet on ETH on behalf of Lido, and five more have recently joined,” protocol technology leader Vasiliy Shapovalov told CoinDesk last week. Even if the validator is identified as malicious, the loss from the fine is much less than on a centralized exchange.
This protocol provides users with the underlying ether liquidity through stake derivative tokens called stETH. When a user deposits 1 ETH on the Lido protocol, they get 1 STETH in return.
‘STETH rewards will be collected automatically. “Every day, we increase the STETH balance in our wallet,” said Lido Finance. As Ben Giove, a contributor to the crypto newsletter Bankless, points out, Lido users can earn participation revenue, maintain network share through derivative signs, and use it like any other DeFi protocol promotional material. increase.
Kraken offers equity derivatives. However, according to Konstantin Lomashuk, a member of Lido DAO, it cannot be used outside the fair. Many of these centralized strike services require the user to lock the token. “Note that unqualified ETH may remain unimportant,” Kraken warned on its website in January. With Lido, the technical risks associated with validation of validity are transferred to industry experts. “Lido is unmanned, but verification is handled by some of the best professional services, giving confidence that even large funds trust their services,” said Choi of Spartan Capital.