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- New Ethereum 2.0 staking platform intends to enable users to stake and still use ETH.
- The Lido platform is currently under development.
The phased rollout of the long-planned Ethereum 2.0 has always presented Ether (ETH) users/investors with the challenge of not being able to reuse, move, or transfer the staked cryptos at the next minutes. The cryptocurrencies can only be moved when the phase – with the transfer functionality – is rolled out successfully, which might potentially require a long time.
Simply put, ETH holders either have to stake on Ethereum 2.0 and wait for staking rewards or trade their token on regular exchanges and even lock them on decentralized finance (DeFi) protocols with the possibility to withdraw anytime. However, a new staking solution is looking to make both options available for Ethereum investors.
Lido to enable staked and transferrable ETH for Ethereum 2.0
Announced on Thursday, the new staking solution for Ethereum 2.0 dubbed “Lido” is a project in the making from P2P Validator, and many staking providers reportedly back it. Basically, the project aims to achieve the reported liquidity by issuing a token (bETH) in return to any ETH investor who stakes through it.
In a 1:1 ratio, the bETH will represent the users’ staked ETH balance on the Ethereum beacon chain. This means that the bETH will correspond to an increase in the user’s ETH balance on the beacon chain, whenever the staked ETH’s generates rewards.
Just like the regular Ether (ETH), the report noted that the bETH token could equally be traded and spent by the holders. Additionally, it is compatible with decentralized finance protocols meaning that the token can still be used for on-chain lending. More so, the token holders will be able to convert it to ETH, when the transfer feature is finally rolled out on Ethereum 2.0.
