How does Lido ETH work?
Lido ETH is a staking protocol that allows users to earn rewards for staking their Ether (ETH) tokens.
The protocol works by allowing users to deposit their ETH tokens into a smart contract, which then locks them up for a certain period of time. During this period, the ETH tokens are used to secure the Ethereum network and generate rewards for the stakers. The rewards are generated through a process called "Proof of Stake" (PoS).
In PoS, users stake their ETH tokens in order to become validators on the network. Validators are responsible for verifying transactions and ensuring that the network remains secure. As a reward for their work, validators receive a portion of all transaction fees generated on the network.
This reward is distributed among all stakers proportionally based on how much they have staked. In addition to generating rewards, Lido ETH also provides additional features such as governance and voting rights. Users can use these features to help shape the future of the protocol and its associated projects.
This allows users to have more control over how their funds are used and invested in projects related to Lido ETH.
