Lido lets you earn a return on your ETH.
What is Lido?
Lido Finance is a liquid staking protocol, first announced in October 2020. In December, Lido raised $2 million in fresh funding to support their mission of allowing users to earn ETH 2.0 staking rewards, without having to set-up and maintain a validator of their own.
Lido simplifies the entire staking process and lets you withdraw at any time. There’s currently over $6 billion being staked via Lido on Ethereum.
Argent integrated Lido in Argent Vault, but zkSync wallet allows staking for significantly lower network fees.
How to stake ETH in Argent
- Open your Argent zkSync wallet and go to Invest tab
- Tap ETH > Staking
- Enter the amount of ETH you would like to invest
- Tap Review
- Tap Invest now
Once the transaction has been completed you’ll receive wstETH (wrapped Staked ETH). Since zkSync doesn't have smart contracts yet, the rewards will not show token amount increase. You will see the fiat price of the token change instead.
Please also note that wstETH isn't 1:1 to ETH, meaning if you do decide to sell your wstETH you'll get the around 99% of the value which would be the market rate. This is because Ethereum 2.0 withdrawals are not live yet. For more on this, read Lido's explainer.
Lido takes a 10% fee which is already accounted for in the yield you get.
As we are using pooling to bring liquidity from L1 to L2, you pay a small gas fee to cover your share of the L1 transaction needed to rebalance the pool.
There are also zkSync network fees which will cost no more than a couple of dollars.
As always in crypto and DeFi, you should do your own research before using a product. These include smart contract vulnerabilities and the economics of the protocols involved. Lido’s audits can be found on their homepage and they list further risks in their FAQs.
The percentage return on staked ETH will depend on the total staked ETH in the network. APY decreases when the total amount of staked ETH is increased. The current APY will always be shown in the Argent app.
How Lido access works via Argent on zkSync
ZkSync is just getting started and smart contracts are coming with version 2.0 in 2022 - until then, we’ve partnered with leading DeFi providers to bring a selection of popular investment options and utilize atomic swaps on zkSync - a trustless, peer-to-peer way to swap tokens between two parties.