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Lido is a leading staking protocol. It allows users to stake assets like ETH while retaining liquidity. The staked assets are represented by Lido's liquid stETH token. stETH can be freely transferred and used across DeFi apps to earn additional rewards. This unique model has made Lido the top DeFi protocol by total value locked - over $14 billion as of July 2023.
stETH is a token representing ETH staked through Lido. 1 stETH = 1 ETH. The total supply of stETH grows as more ETH is deposited and staking rewards accrue. stETH enables DeFi use cases like lending and trading. It can also be redeemed 1:1 for ETH. The exchange rate may fluctuate slightly based on factors like staking penalties.
As a rebasing token, stETH requires price feeds to accurately represent its real-time value. This enables DeFi protocols to utilize stETH for operations like trading, lending, and yield optimization. RedStone's price feed provides a transparent on-chain price for stETH based on data from DEXes, CEXes, and aggregators. This unlocks wider DeFi use of stETH.
RedStone aggregates stETH price data from various sources. The median price is signed and broadcast to RedStone's Data Distribution Layer. Smart contracts can easily fetch this signed price data using RedStone's evm-connector library.
The Lido-RedStone collaboration will continue to enable stETH adoption. Upcoming layer 2 ecosystems like zkSync and Scroll present opportunities to bridge stETH price feeds for further DeFi growth.
