Ethereum Staking Infrastructure

Staking rewards

Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain.

e.g., 3.2% Staking APR.

Set per stVault through consensus between the Vault Owner and the Node Operator.

e.g., 3% out of Gross Staking Rewards earned.

In this example, the annual Lido Fee approximately equals to 6% of the Lido Core Gross APR and can be calculated by the equation:

Lido Fee = 6% × 3.2% Lido Core Gross APR × 90 stETH = 0.1728 ETH;

e.g., Lido v2 Gross APR ~ 3.2%.

stETH Liability Growth

The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Staker’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Staker earns as a holder of stETH.

e.g., stETH APR ~ 2.88%.

stVault Bottom Line

A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.

stETH Usage Outside the stVault

The Vault Owner generates primary profit by using minted stETH in DeFi protocols:

Staking rewards

Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain.

e.g., 3.2% Staking APR.

Set per stVault through consensus between the Vault Owner and the Node Operator.

e.g., 3% out of Gross Staking Rewards earned.

In this example, the annual Lido Fee approximately equals to 6% of the Lido Core Gross APR and can be calculated by the equation:

Lido Fee = 6% × 3.2% Lido Core Gross APR × 90 stETH = 0.1728 ETH;

e.g., Lido v2 Gross APR ~ 3.2%.

stETH Liability Growth

The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Staker’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Staker earns as a holder of stETH.

e.g., stETH APR ~ 2.88%.

stVault Bottom Line

A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.

stETH Usage Outside the stVault

The Vault Owner generates primary profit via higher validation performance than Lido Core APR plus rewards received as a stETH holder.

In our example

Staking rewards

Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain.

e.g., 3.4% Staking APR.

Set per stVault through consensus between the Vault Owner and the Node Operator.

e.g., 4% out of Gross Staking Rewards earned.

In this example, the annual Lido Fee approximately equals to 6% of the Lido Core Gross APR and can be calculated by the equation:

Lido Fee = 6% × 3.2% Lido Core Gross APR × 850.11 stETH = 1.6322 ETH;

e.g., Lido v2 Gross APR ~ 3.2%.

stETH Liability Growth

The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Staker’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Staker earns as a holder of stETH.

e.g., stETH APR ~ 2.88%.

stVault Bottom Line

A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.

stETH Usage Outside the stVault

The Staker used the minted stETH to loop through a lending market in order to amplify staking rewards. Additional income and expenses from the lending market:

Total APR is normalized to the Staker’s initial 100 ETH.

Note: All lending market parameters are illustrative. Actual values depend on the specific product and prevailing market conditions.