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Update Ethereum Staking Widget “faq-stake-page”
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solidovic committed Nov 22, 2023
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Expand Up @@ -18,4 +18,58 @@ faq:
rewards. When they unstake, they burn the stToken to initiate the
network-specific withdrawal process to withdraw the balance of stake and
rewards.
- question: Is it safe to work with Lido?
questionId: Is_It_Safe_To_Work_With_Lido
answer: >-
In order to work safe, Lido fits the next points:
* Open-sourcing & continuous review of all code.
* Committee of elected, best-in-class validators to minimise staking risk.
* Use of non-custodial staking service to eliminate counterparty risk.
* Use of DAO for governance decisions & to manage risk factors.
* Lido has been audited by Certora, StateMind, Hexens, ChainSecurity, Oxorio, MixBytes, SigmaPrime, Quantstamp. Lido audits can be found in more detail [here](https://github.com/lidofinance/audits).
Usually when staking ETH you choose only one validator. In the case of Lido you stake across many validators, minimising your staking risk.
- question: What are the risks of staking with Lido?
questionId: What_Are_The_Risks_Of_Staking_With_Lido
answer: >-
There exist a number of potential risks when staking using liquid staking
protocols.
* Smart contract security
There is an inherent risk that Lido could contain a smart contract vulnerability or bug. The Lido code is open-sourced, audited and covered by an extensive bug bounty program to minimise this risk. To mitigate smart contract risks, all of the core Lido contracts are audited. Audit reports can be found [here](https://github.com/lidofinance/audits#lido-protocol-audits). Besides, Lido is covered with a massive [Immunefi bug bounty program](https://immunefi.com/bounty/lido/).
* Slashing risk
Validators risk staking penalties, with up to 100% of staked funds at risk if validators fail. To minimise this risk, Lido stakes across multiple professional and reputable node operators with heterogeneous setups, with additional mitigation in the form of self-coverage.
* stToken price risk
Users risk an exchange price of stTokens which is lower than inherent value due to withdrawal restrictions on Lido, making arbitrage and risk-free market-making impossible. The Lido DAO is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist and, as such, it is our duty to communicate them.
The Lido DAO is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist.
- question: What is Lido staking APR for Ethereum?
questionId: What_Is_Lido_Staking_APR_For_Ethereum
answer: >-
Lido staking APR for Ethereum = Protocol APR * (1 - Protocol fee)
Protocol APR — the overall Consensus Layer (CL) and Execution Layer (EL) rewards received by Lido validators to total pooled ETH estimated as the moving average of the last seven days.
Protocol fee — Lido applies a 10% fee on staking rewards that are split between node operators and the DAO Treasury.
More about Lido staking APR for Ethereum you could find on the [Ethereum landing page](https://lido.fi/ethereum) and in our [Docs](https://docs.lido.fi/#liquid-staking).
- question: What fee is applied by Lido? What is this used for?
questionId: What_Fee_Is_Applied_By_Lido_What_Is_This_Used_For
answer: The protocol applies a 10% fee on staking rewards. This fee is split
between node operators and the Lido DAO. That means the users receive 90%
of the staking rewards returned by the networks.
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