What is Staked #Ether or stETH?
stETH, also known as "staked Ether," is a tokenized representation of Ether (ETH) that has been staked on the Ethereum 2.0 network.
Ethereum 2.0 is an upgrade to the existing Ethereum blockchain, aimed at improving scalability, security, and energy efficiency. When a user participates in the Ethereum 2.0 network by staking their ETH, they lock up their ETH as collateral to support the network's consensus mechanism. In return for staking, users receive stETH tokens, which represent their staked ETH and can be transferred, traded, or used as collateral in DeFi protocols. The value of stETH is tied to the value of the underlying ETH that has been staked. It's worth noting that stETH represents a derivative of staked ETH and carries certain risks.