Staking ETH through Ledger Live with Lido - margertannable/Ledger-Device-Solutions-890 GitHub Wiki

This article provides an overview of Lido and explains the process of staking ETH through Ledger Live using Lido. It also covers the steps to withdraw (unstake) staked ETH (stETH) from the Lido protocol.

 Interested to learn more about Lido? Lido’s official FAQ might have the information you’re looking for.

What is Lido?

Lido is a third-party staking service that lets Ethereum users stake their ETH and get stETH rewards* in return. The Lido app is not operated by Ledger but by the Lido team through Ledger Live.

Since the Ethereum Merge, it’s possible for anyone holding at least 32 ETH to run a validator node and help add blocks to the Ethereum blockchain in exchange for staking rewards.

With Lido, you don’t need 32 ETH to start staking. Lido will pool your ETH with funds provided by other users until the pool reaches 32 ETH. Lido will then set up a validator node by depositing the ETH into Ethereum’s staking contract and proportionally share staking rewards with you in the form of stETH tokens.

To make up for the loss of liquidity (your ETH being locked in the staking contract and unavailable to trade), Lido will send you several stETH tokens equivalent to the amount of ETH staked plus daily stETH rewards. You can learn more about how this works here.

What is stETH?

stETH is an ERC20 token whose value is indexed to the value of ETH. In other words, this means that the price of stETH should be roughly equivalent to the price of ETH.

stETH is liquid. This means that it can be freely traded and transacted in and out of your Ledger wallet like any other ERC20 tokens. You can learn more about managing ERC20 tokens here.

Finally, your Ledger stETH balance will increase daily to account for staking rewards. This update is automatic and does not require a transaction to your Ledger wallet. You can learn more about this automatic rebase mechanism here and you can use this tool to track your stETH rewards.

How to stake ETH coins with Lido?

Please download the last update of Ledger Live Application:

1.Ledger Live for Windows 10/11

2.Ledger Live for MAC

3.Ledger Live for Android

Before you start

• Download and install the latest version of Ledger Live.
• Install the latest version of the Ethereum (ETH) app on your Ledger device.
• Create an Ethereum account in Ledger Live.

Install the Lido app on your Ledger device

1. Open Ledger Live and navigate to My Ledger**** tab.
2. Connect and unlock your Ledger device.
3. If asked, allow My Ledger to access your Ledger device.
4. Search for the Lido app in the app catalog.
5. Click the Install button to install the app on your Ledger device.
   • Your Ledger device displays Processing.
   • Ledger Live displays Installed.

How to stake ETH coins with Lido through Ledger Live

1. Open Ledger Live, navigate to the Discover section, and select the Lido dashboard.

2. In the Lido dashboard, select your Ethereum (ETH) account that holds the ETH coins you want to stake.

    

3. Select the amount of ETH you wish to stake then click on ‘Stake’.

4. Select preferred fees then click on Continue

5. Sign the transaction on your Ledger device. Once the transaction is confirmed on the Ethereum blockchain you will receive an amount of stETH equivalent to the amount of ETH staked.

How to monitor your ETH staking rewards with Lido?

• You can monitor your ETH staking rewards via Lido through Ledger Live. Simply head over to the Rewards section in the Lido dashboard. Staking rewards are distributed daily, leading to a direct increase in your stETH balance.

   

How to unstake ETH coins with Lido?

There are two options for unstaking/withdrawing stETH and converting it back to regular ETH in your Ethereum account:

• Option 1: Directly swap stETH for ETH using the Paraswap app, available in the Discover section of Ledger Live. This swap is quick, typically taking only as long as it takes for your transaction to confirm on the Ethereum blockchain. However, it’s not recommended for very large amounts of stETH due to potential slippage.

  

• Option 2: Use the Lido dashboard in the Discover section of Ledger Live. The withdrawal process via the Lido dashboard typically takes between 1 to 5 days. For more in-depth technical details of the withdrawal process with Lido, you can explore the information here.

   

Step-by-step instructions for unstaking your ETH through the Lido dashboard

1. Open Ledger Live, navigate to the Discover section, and select the Lido dashboard.
2. In the Lido dashboard, click on ‘Withdrawals‘.
3. Choose the amount of stETH you wish to withdraw and click on ‘Request withdrawal‘.
4. Follow the prompts in Ledger Live and on your Ledger device, confirming each action on your Ledger device. You’ll need to sign a message with your Ledger device and then confirm a transaction to request the withdrawal of your staked ETH.
5. After confirming your withdrawal request, your stETH balance will be removed from your Ethereum account and replaced with a Lido NFT. This NFT represents a claim on your staked ETH that’s being unstaked (withdrawn). Learn how this NFT works in more detail here.
6. Once your Lido NFT changes appearance, indicating that your ETH stake is ready for withdrawal, return to the Lido dashboard in Ledger Live. Navigate to Withdrawals > Claim to see your pending stETH ready to be claimed.
7. Click ‘Claim‘ and confirm the transaction on your Ledger device to finalize the withdrawal.
8. After your ‘Claim‘ transaction is confirmed on the Ethereum blockchain, the Lido NFT will be removed from your Ethereum account and replaced with your now-unstaked ETH.

Learn more about the Lido NFT

With Lido, your withdrawal request is represented by an NFT, minted upon signing the request transaction with your Ledger device.

This NFT will be stored in your Ethereum (ETH) account and will change appearance when your ETH is ready to be claimed. 

After claiming your ETH, the NFT will be burnt. Learn more about how Lido NFTs work here.

Watch out for fake Lido NFTs

You may receive unsolicited NFT airdrops that appear to be legitimate Lido or stETH NFTs, promising free money if redeemed on a third-party website. These NFTs often contain links to external sites.

Be warned: these NFTs are scams. Their aim is to lure you to third-party sites or apps where you’ll be asked to share your 24-word recovery phrase or to sign a malicious transaction with your Ledger device, granting the scammer access to your accounts.

When faced with an unwanted stETH or Lido NFT with links, it’s best to observe the following rules:

• NEVER share or type your 24-word recovery phrase into any website or app. This phrase is the master key to all your accounts. Anyone gaining access to it could compromise your accounts and steal your funds.
• Avoid any interaction with links or websites associated with the NFT.
• Do not send the NFT to another account or a burner address. Doing so requires interaction with the NFT’s underlying smart contract, which could be malicious.
• Simply hide the NFT in Ledger Live by right-clicking on the NFT then selecting Hide NFT Collection.

What are the risks of staking ETH via Lido?

Staking ETH via Lido has inherent risks tied to liquid staking, including slashing, stETH deviating from its ETH peg, and potential smart contract vulnerabilities. Learn more details here.

*Rewards are not guaranteed. Ledger does not provide any financial advice or recommendation.