Published date: December 6, 2025 18:56
Coinidol.com: STETH (short for Staked Ether) represents a version of Ethereum’s native cryptocurrency, Ether (ETH), which has been tokenized to represent its staked form.
This concept is closely related to Ethereum 2.0, an upgrade to the existing Ethereum network aimed at improving scalability, security, and sustainability.
Ethereum 2.0 is designed to move from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) mechanism. PoS requires validators to “stake” a certain amount of cryptocurrency as collateral in order to participate in block validation.
Staked Ether Token (STETH)
STETH serves two purposes in the Ethereum ecosystem. This provides benefits for stakers and the DeFi (decentralized finance) ecosystem who want to access staked ETH, while also helping to ensure the safety of the Ethereum network by participating in the PoS consensus mechanism.
When ETH is staked on Ethereum 2.0, users receive a token known as STETH that represents the staked ETH. STETH tokens can be exchanged for ETH at any time on a 1:1 basis.
STETH is an ERC-20 token, meaning it operates on the Ethereum network and can be traded and used like any other Ethereum-based token.
STETH provides users with liquidity for staked ETH. Users can trade, lend, or borrow STETH while still staking their ETH, and earn rewards as validators on Ethereum 2.0.
Disclaimer. This article is for informational purposes only and should not be considered an endorsement by Coinidol.com. The data provided was collected by the creator and is not sponsored by any company or token developer. These are not recommendations to buy or sell cryptocurrencies. Readers should do their research before investing in a fund.
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