In the era of Ethereum 2.0, pledged tokens can also be moved?
Original title: "Pledged ETH can still participate in DeFi?" Lido plans to provide such a service in the era of Ethereum 2.0"
Original source: Lianwen
The new pledge service provider Lido said that they We hope to provide DeFi users with a "best of both worlds" service: while staking on the Ethereum 2.0 network, they can continue to use existing opportunities to participate in the DeFi protocol to earn short-term returns.
Content Overview ETH staked early on on the Ethereum 2.0 network will be locked for a period of time on the new chain; Lido is a staking service with the goal of helping Users contribute to the Ethereum 2.0 proof-of-stake blockchain while maintaining liquidity; Lido ultimately hopes to eliminate the conflict between building Ethereum 2.0 and earning DeFi rewards.
Soon, Ethereum users will have to make a difficult Choose:
Or stake ETH tokens on the Ethereum 2.0 blockchain to secure the network until Ethereum 2.0 Initiate transactions, which can take months (possibly even years) to wait. Moreover, the pledged ETH (which can only be pledged in multiples of 32 ETH) cannot be moved/traded, which means that market liquidity will be affected; either invest ETH tokens in DeFi to earn income.
But now, Ethereum users may still have a "best of both worlds" option: Lido.
Lido is an Ethereum 2.0 staking solution that tries to solve the above problems. It has been supported by several industry-leading staking service providers. Allow users to participate in any amount of ETH token pledge, without being limited by the "32 ETH multiple".
Through a "phased rollout" model, Ethereum is gradually moving from The current proof-of-work network transitions to the ETH 2.0 network based on the proof-of-stake consensus. Starting from phase 0, the Ethereum blockchain will lock the ETH tokens pledged by users until the next phase is released. For DeFi users, this "lock-in" method may be an unacceptable choice, because they need ETH to be pledged in DeFi protocols based on the Ethereum 1.0 blockchain, and these protocols usually provide high returns on investment.
When using Lido to pledge ETH on the Ethereum beacon chain At that time, the user will receive the bETH token, which represents the ETH token pledged by the user on the Ethereum beacon chain in a 1:1 manner, effectively serving as a link between the Ethereum 2.0 pledge reward and the Ethereum 1.0 bridge.
With pledged ETH tokens generated in Ethereum 2.0 Equity rewards, the user's ETH balance on the beacon chain will also increase, so the bETH token balance will be updated accordingly once a day to ensure that users can obtain the same value on Ethereum 1.0 as on Ethereum 2.0 without delay. Staking reward value.
For users, the way of using bETH is actually the same as using ETH All the methods are exactly the same, such as sales, consumption, etc., but more importantly - bETH is compatible with DeFi. Since the token can be used as collateral for tokens on the chain, users can continue to use the DeFi protocol, even if their ETH Already staked on Ethereum 2.0. This means that users using Lido’s bETH token can still generate returns by locking in value to facilitate loan origination and other financial activities.
Not only that, for those users who do not have enough ETH tokens to Lido said that Lido can also help them "sell orders" with other users to meet the Ethereum 2.0 minimum pledge requirement of 32 ETH - a feature that is actually very practical, because many small investors now finally have the opportunity to contribute to the protection of the Ethereum network. Do your part.
If Ethereum 2.0 goes into production smoothly and ETH on the blockchain After the transaction is activated, users can also seamlessly convert bETH back to ETH. From this perspective, bETH will not only be an important basic element in the DeFi industry in the future, but also likely to become the basic building block of Ethereum's "currency Lego" stack.
At this stage, Lido is under development. The project leader is the P2P Validator team, including P2P Validator CEO Jordan Fish and CTO Vasiliy Shapovalov. The project schedule and testnet are expected to be released in a few weeks Product for more details.
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