Lido Finance stETH closes in on ETH price

Lido Finance stETH closes in on ETH price

On Thursday, following the success of The Merge, the discount on the Lido Finance protocol token, Staked Ether (stETH), fell from 3.5% to 1.5%, reports French blockchain data specialist Kaiko.

The Lido Finance liquid staking solution allows you to stake ether and receive in exchange stETH tokens that can be used on other protocols in order to generate additional returns.

According to data provider Coingecko, 1 stETH now equals around 0.986 ETH compared to less than 0.97 ETH before The Merge. The price gap between stETH and ETH is an important metric for assessing the risk associated with the merger, according to several experts.

The price of Staked Ether (stETH) lost parity with ether last May following the collapse of the Terra ecosystem and its TerraUSD stablecoin. The token then traded for the equivalent of 0.93 ETH at its low in mid-June before bouncing around 0.97 ETH. A delicate situation for large stETH holders such as the crypto lender Celsius, which declared bankruptcy this summer.

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