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Ecosystem|1 MIN READ|NOV 23, 2025

Lido Finance: Liquid Staking Reimagined

For years, staking meant locking up tokens for extended periods and sacrificing liquidity in exchange for rewards. That changed when Lido introduced its liquid staking model: stake your ETH (or other supported tokens) and immediately receive a transferable token (stETH, for example) that accrues rewards while remaining usable in DeFi.

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01node Team

Infrastructure Engineers

For years, staking meant locking up tokens for extended periods and sacrificing liquidity in exchange for rewards. That changed when Lido introduced its liquid staking model: stake your ETH (or other supported tokens) and immediately receive a transferable token (stETH, for example) that accrues rewards while remaining usable in DeFi.

According to the Lido documentation, “by staking with Lido your tokens remain liquid and can be used across a range of DeFi applications”. That means you don’t have to choose between yield and flexibility, you can have both. For delegators who want to maximize earning potential without sacrificing utility, Lido offers a powerful proposition.

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