# Lido staking | Lido - Liquid Staking for Digital Tokens - Lido

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Lido Staking, offered by the Lido Finance protocol, empowers Ethereum holders to stake their ETH assets and contribute to the Ethereum 2.0 network's consensus mechanism while maintaining liquidity and earning staking rewards.

#### Understanding Lido Staking

1. **Participating in Ethereum 2.0:** Ethereum 2.0 introduces a shift from a proof-of-work (PoW) to a PoS consensus mechanism, requiring validators to stake a minimum amount of ETH as collateral to secure the network and validate transactions. Lido Staking enables participation in this process.
2. **Liquid Staking Solution:** Lido allows users to stake their ETH through the protocol, converting it into a tokenized form called staked ETH (stETH). This process doesn't require locking up ETH, providing liquidity and flexibility to participants.
3. **Aggregate Staking:** Lido aggregates stakers' ETH holdings into a larger pool, allowing smaller ETH holders to collectively participate in staking, receive rewards, and contribute to the security of Ethereum 2.0.

#### Features of Lido Staking

1. **Tokenized Staked ETH (stETH):** Users receive stETH tokens in return for staking their ETH through Lido. These tokens represent their stake in the aggregated pool and accrue staking rewards proportionate to their holdings.
2. **Staking Rewards:** By holding stETH tokens, participants passively earn rewards generated from Ethereum's staking mechanism. These rewards are distributed in the form of additional stETH tokens over time.
3. **Decentralized Validation:** Lido's aggregated pool contributes to Ethereum's PoS network by acting as validators, securing the network, and validating transactions on behalf of participants.

#### Using Lido Staking

1. **Staking ETH:** Users deposit their ETH into Lido Staking, receiving stETH tokens in return. This conversion allows them to participate in Ethereum 2.0's staking mechanism while holding liquid stETH assets.
2. **Accruing Rewards:** By holding stETH tokens, participants automatically accrue staking rewards in the form of additional stETH tokens, reflecting their share of rewards generated by the protocol's validators.
3. **Maintaining Liquidity:** The tokenized nature of stETH allows users to freely trade, transfer, or utilize their staked ETH holdings without facing the constraints of a lock-up period, maintaining liquidity and flexibility.

#### Security Measures and Support

1. **Audits and Security:** Lido undergoes extensive smart contract audits and security measures to ensure the safety and integrity of the protocol and the assets staked within the platform.
2. **Community and Support:** Lido provides robust community support through forums, documentation, and resources to assist users in understanding and participating in the staking process.

#### Conclusion

Lido Staking represents an accessible and liquid solution for ETH holders seeking to engage in Ethereum 2.0's staking mechanism. By tokenizing staked ETH into stETH assets, Lido allows participants to earn rewards, contribute to network security, and maintain the flexibility of their ETH holdings without the need for extensive technical knowledge or lock-up periods.
