StETH is a derivative of ETH that is staked on Lido. Lido is a decentralized protocol allowing users to stake ETH and participate in the consensus mechanism of Ethereum. Staking helps to secure the Ethereum network under a proof-of-stake consensus mechanism, which is more energy-efficient and scalable.
Lido
What Is Lido?
Lido is a liquid staking solution for Ethereum. Lido lets users stake their ETH – with no minimum deposits or maintaining of infrastructure – whilst participating in on-chain activities, e.g. lending, to compound returns.