Staking via Lido

The Lido protocol aggregates ETH deposits from many users into a shared staking pool. Instead of each depositor needing to create or operate their own validator, Lido delegates these pooled deposits to a set of vetted, professional node operators.

Key properties of the Lido pool:

• Shared validator infrastructure
  Deposited ETH is distributed across a decentralized set of node operators.

• Automatic reward accumulation
  Validator rewards (minus operator fees) increase the underlying stake of the pool over time. This increase is redistributed to participants in the protocol.

• No lockups on the execution layer
  Users can enter or exit the staking position through liquidity mechanisms (stETH/wstETH), even while the underlying stake is bonded.

The pool structure makes staking operationally simple while maintaining network decentralization and security.