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Lido Staked Matic

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Discover Lido Staked Matic's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Lido Staked Matic?

Lido Staked Matic (stMATIC) is an ERC20 token representing a user's share of staked MATIC tokens within the Lido on Polygon protocol. It allows users to earn staking rewards without maintaining infrastructure and enables participation in decentralized finance (DeFi) applications on both Ethereum and Polygon networks. stMATIC is a liquid token that can be traded, bridged, and used across various DeFi platforms, providing users with a range of use cases while maintaining control over their staked assets.

How is Lido Staked Matic used?

Lido Staked Matic (stMATIC) is a liquid token that represents a user's share of the total MATIC tokens staked within the Lido on Polygon protocol. It is an ERC20 token that can be used in various DeFi applications across both Ethereum and Polygon networks. Here are some ways stMATIC can be utilized:

  1. Hodling: Users can hold stMATIC in their wallets, accumulating MATIC staking rewards without sacrificing liquidity.

  2. Trading: stMATIC can be traded through decentralized or centralized exchanges, or swapped through liquidity pools on both Ethereum and Polygon Mainnet.

  3. Providing Liquidity: stMATIC can be used in liquidity pools, allowing users to exchange stMATIC for MATIC or other assets like LDO.

  1. Lending and Borrowing: stMATIC can be used as collateral for loans or loaned to others through platforms like Aave.

  2. Other Applications: stMATIC can be used in various dApps that support the token, making it easier for users to maximize their MATIC without sacrificing staking rewards.

How do I store Lido Staked Matic?

To store Lido Staked Matic (stMATIC) tokens, you can follow these steps:

  1. Ledger Wallet: You can store stMATIC tokens on your Ledger wallet. Ledger provides the option to install a stMATIC wallet on both the Ethereum and Polygon chains. This allows you to manage your stMATIC tokens across both networks.

  2. Metamask Wallet: Another option is to use a Metamask wallet. You can add stMATIC to your Metamask wallet after staking your MATIC tokens on Lido. This allows you to easily manage and track your stMATIC tokens.

  3. Zerion Wallet: Zerion Wallet also supports stMATIC tokens. You can stake MATIC on Lido using Zerion Wallet and manage your stMATIC tokens within the wallet.

  1. Other Wallets: stMATIC tokens are ERC20 tokens, so any Ethereum-compatible wallet that supports ERC20 tokens can be used to store stMATIC. This includes a wide range of DeFi applications on both Ethereum and Polygon networks.

Remember to ensure the wallet you choose supports stMATIC tokens and follow the specific instructions for adding and managing these tokens within the wallet.

How to buy Lido Staked Matic?

To buy Lido Staked Matic (stMATIC) tokens, you can follow these steps:

  1. Find a Reliable Centralized Exchange: Look for a trustworthy centralized exchange like Binance, Coinbase, or Gate.io where you can purchase stMATIC tokens.

  2. Use a Decentralized Exchange (DEX): Alternatively, you can use a DEX like Uniswap on Ethereum or Quickswap on Polygon to swap or purchase stMATIC tokens.

  3. Check Coinmarketcap: Refer to Coinmarketcap for more information on stMATIC and its availability on different exchanges.

By following these steps, you can easily acquire stMATIC tokens for use in various DeFi applications across the Ethereum and Polygon networks.

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History of Lido Staked Matic

Lido Staked Matic, also known as stMATIC, is a liquid staking solution for MATIC tokens on the Polygon network. The history of stMATIC is closely tied to the development of Lido Finance, a decentralized liquid staking service that was founded in December 2020 by Vasilii Shapovalov, Konstantin Lomashuk, and a team of experienced developers.

Lido Finance initially focused on Ethereum staking and introduced the financial derivative stETH, which made staked funds liquid. This innovation marked the beginning of the liquid staking industry. The first version of the protocol allowed users to stake funds in the deposit contract, but it did not support withdrawals. The second version, released after the Merge update, introduced support for withdrawals and made Lido a complete alternative to staking platforms of all kinds.

Lido later expanded its services to the Polygon network, creating Lido on Polygon. This service allows users to stake their MATIC tokens in a decentralized and secure manner, earning stMATIC tokens that can be used within the wider DeFi ecosystem on both Ethereum and Polygon networks. stMATIC tokens are ERC20 tokens that represent the user's share of the total supply of MATIC tokens within the Lido-on-Polygon system. The value of stMATIC changes over time as rewards are accrued and claimed.

Today, stMATIC is supported by various DeFi applications across Ethereum and Polygon networks, including Balancer, Curve, Beefy, Dystopia, Kyber, and Quickswap. Users can stake their MATIC tokens through the Lido interface and bridge them to the Polygon network using the Polygon PoS bridge or Stakeall Finance.

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How Lido Staked Matic works

Lido Staked Matic (stMATIC) is a liquid staking token that allows users to stake their MATIC tokens without needing to lock them up or maintain the required infrastructure. Here's how it works:

Staking Process
  1. Unlocking Tokens: Users unlock their MATIC tokens by approving the stMATIC contract to spend the amount to be staked from their balance. This is done by clicking the "unlock" button and confirming the transaction.
  2. Staking: After unlocking, users click the "Stake now" button and confirm the transaction. The Lido on Polygon protocol receives the submitted MATIC tokens and calculates the current ratio between MATIC and stMATIC tokens. The corresponding amount of stMATIC is then sent to the user.
stMATIC Token
  • Non-Rebasable Token: The balance of stMATIC tokens in the user's wallet remains the same, but the value of the token increases over time as staking rewards are accumulated.
  • Redeemable: stMATIC tokens can be redeemed for MATIC plus accrued staking rewards after an unbonding period of approximately 9 days.
Rewards and Distribution
  • Accumulation: Rewards are accumulated daily and redistributed among node operators (5%), Lido DAO (2.5%), and the Treasury (2.5%).
  • Unstaking: To unstake, users submit their stMATIC tokens and receive a non-fungible token (NFT) as a voucher for MATIC token claim after the unbonding period.
  • Claiming: After the unbonding period, users can submit their NFT to Lido on Polygon, which gets burned, and they receive their MATIC tokens back.
Use Cases
  • DeFi Applications: stMATIC can be used within various DeFi applications on both Ethereum and Polygon networks, such as lending, market making, and liquidity provision.
  • Exchanges: stMATIC can be exchanged for MATIC through exchanges that offer liquidity, such as Quickswap's stMATIC-MATIC pool.
Key Features
  • Liquid Staking: Users can stake their MATIC without locking them up, allowing for continued participation in DeFi activities.
  • Daily Rewards: Users receive daily staking rewards.
  • Full Transferability: Users maintain full control and transferability of their stMATIC tokens.

Overall, Lido Staked Matic (stMATIC) provides a convenient and liquid way to stake MATIC tokens, earning rewards while maintaining flexibility within the DeFi ecosystem.

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Lido Staked Matic's strengths

Lido Staked Matic (stMATIC) offers several strengths:

  1. Liquid Staking: stMATIC allows users to stake their MATIC without needing to lock assets or maintain the required infrastructure, making it a liquid staking solution. This enables users to continue participating in DeFi activities related to lending and market making.

  2. Flexibility: stMATIC can be used freely across DeFi ecosystems on both Ethereum and Polygon, providing a wide range of use cases. It can be bridged to the Polygon network and is supported by various DeFi applications.

  3. Auto-Compounding: stMATIC auto-compounds, meaning users do not need to manually claim and restake their rewards, making it a convenient option for staking MATIC.

  1. Daily Rewards: stMATIC offers daily staking rewards, providing users with a regular income stream.

  2. High Correlation to Market: stMATIC is highly correlated to the overall market, making it a good option for users who want to track market trends.

  3. No Lock-up or Minimum Deposit: There are no lock-up or minimum deposit requirements when staking through Lido, making it accessible to users with varying amounts of MATIC.

  1. Redeemable for MATIC: stMATIC is redeemable for MATIC plus accrued staking rewards following an unbonding period, ensuring users can recover their original assets.

These strengths make stMATIC an attractive option for users looking to stake MATIC and participate in DeFi activities.

Lido Staked Matic's risks

Lido Staked Matic (stMATIC) carries several risks, including:

  1. Smart Contract Risk: stMATIC is an ERC20 token that relies on smart contracts, which are vulnerable to bugs, security issues, and potential exploitation by attackers, leading to loss of funds.

  2. Counterparty Risk: When staking through Lido, users entrust their funds to a third-party staking provider, which can be susceptible to hacks, insolvency, or malicious actions, resulting in loss of funds.

  3. Slashing Risk: Staking on Ethereum involves the possibility of being "slashed" if validators act maliciously or do not follow network rules, leading to a loss of staked funds.

  1. Liquidity Risk: While stMATIC is a liquid token, there is no guarantee that it will always be liquid or tradable. Decreased liquidity can make it difficult to trade stMATIC tokens.

  2. Depeg Risk: stMATIC's price can deviate significantly from the price of MATIC due to market volatility, liquidity issues, and market demand fluctuations, leading to potential losses for stMATIC holders.

  3. Yield Risk: The yield on stMATIC is subject to changes in the Senior/Junior ratio and the total value locked (TVL) in the pools, which can negatively impact the APY.

  1. Sustainability Risk: The sustainability of the offered APY cannot be guaranteed in the long term, as it is influenced by Lido and Idle incentives, which may change over time.

  2. Junior Tranche Risk: By entering the Junior tranche, investors bear the losses first to protect Senior tranches, which can have a minimal but still present impact.

  3. Liquidity Risk on staking MATIC: Liquid staking on Beefy plus Balancer LPing requires locking up MATIC tokens for 30 days, making them unavailable during that period, which can be a significant risk.

These risks should be carefully considered before staking MATIC on Lido or using stMATIC in various DeFi applications.

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Lido Staked Matic's ecosystem

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Lido Staked Matic’s team

  • Vasilii Shapovalov: Co-founder of Lido, instrumental in creating the liquid staking solution for Ethereum and Polygon.
  • Konstantin Lomashuk: Co-founder of Lido, part of the team that developed the protocol and its derivatives like stETH and stMATIC.
  • Stani Kulechov: Investor in Lido, also the CEO of Aave, supporting the growth of the liquid staking ecosystem.
  • Kain Warwick: Investor in Lido, founder of Synthetix, contributing to the development of decentralized finance (DeFi) applications.
  • Rune Christensen: Investor in Lido, creator of MakerDAO, promoting decentralized governance and staking solutions.
  • Shard Labs: Partner in bringing Lido to Polygon, enhancing the staking experience and DeFi use cases for MATIC tokens.

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