How to Leverage stETH on Fireblocks Off-Exchange
In September, contributors to Lido Institutional were thrilled to share that Fireblocks had integrated the Lido Protocol, enabling their users to stake their ETH with Lido Protocol’s liquid staking middleware for Ethereum. This integration has provided in-platform access to Lido Protocol’s liquid staking solution and stETH token. Users can now stake their ETH, get rewards, and use stETH for on-chain activities, including Fireblocks Off Exchange, which allows Fireblocks users to lock their stETH in a self-custodial collateral wallet to trade on exchanges like Deribit and Bybit.
What is stETH?
Lido Protocol’s stETH is a receipt token that serves as a blockchain-based document of title. It reflects the value of users’ staked tokens and accrued network staking rewards. These tokens are created upon staking and destroyed when redeemed, with balances adjusted daily based on oracle reports. Users can therefore use stETH on demand as a receipt token before the Lido protocol to withdraw their Ether from being staked. stETH can also be used with various third-party DeFi applications that have independently integrated and support it.
With the Ethereum staking mechanism, holders of stETH get daily staking rewards, reflecting the overall growth in value as the Ethereum network grows and becomes more secure. The appeal of stETH lies in its versatility - it functions as a tradable, rewards-bearing token with broad integration across the DeFi ecosystem, offering a seamless staking experience.
What is Fireblocks Off-Exchange?
Fireblocks provides institutions with a secure and efficient way to manage digital assets. Off-Exchange allows users to trade, lend, and manage assets on partner exchanges without moving them from Fireblocks’ wallet infrastructure. By retaining custody, institutions reduce counterparty risk and ensure that their assets are accessible and benefit from Fireblocks’ infrastructure.
The Off-Exchange model is especially beneficial for institutions with high compliance standards or those managing large portfolios, offering added flexibility and operational efficiency. Through Fireblocks, institutions can maintain control over their assets and optimise their workflows across multiple platforms and liquidity venues.
Benefits of Using stETH with Fireblocks Off-Exchange
- Rewards-Generating Collateral: stETH can be used as collateral in various DeFi protocols and centralised exchanges, allowing institutions to leverage a rewards-bearing token that benefits from the staking rewards even while it is collateralised.
- Liquidity Without Compromise: Unlike native staking, where funds are locked and get limited rewards, stETH offers liquidity by representing the Ether the user has previously sent to the Lido Protocol “middleware" and accrued network staking rewards. This enables institutions to trade, lend, or use stETH within DeFi or on CEXs while still getting staking rewards and continuous access to capital.
- Efficient Capital Deployment: stETH’s flexibility on Fireblocks Off-Exchange enables institutions to allocate assets swiftly across exchanges such as Deribit and Bybit, counterparties, and DeFi platforms, all from a single platform. This streamlines operations and accelerates response times.
- Reduced Counterparty Risk: Fireblocks Off-Exchange reduces the need to move assets in and out of exchanges, minimising exposure to counterparty risk. This streamlined approach is ideal for institutions concerned with maintaining custody and mitigating risk.
- Efficient Workflow and Flexibility: By using stETH on Fireblocks, institutions can consolidate their trading, lending, and staking activities within a single platform. This consolidated workflow is not only operationally efficient but also provides a simplified approach to managing on-chain assets while benefiting from Fireblocks’ infrastructure.
Conclusion
The integration of stETH with Fireblocks Off-Exchange provides institutional clients with a powerful toolkit to engage in Ethereum staking with peace of mind. With the flexibility of stETH and the infrastructure of Fireblocks’ Off-Exchange, institutions can navigate the digital asset landscape more confidently, optimising rewards, enhancing liquidity management, and maintaining control over their assets.
Join institutional players using Lido’s stETH on Fireblocks Off-Exchange. Book a demo to learn more.
Lido Institutional
Lido Institutional represents a dedicated group of contributors focused on advocating for the use of Lido protocol’s open-source, liquid staking middleware by non-retail users. Lido protocol’s middleware provides a way to participate in the blockchain network validation process and get staking rewards for this activity. With a mission to democratize staking, Lido protocol’s middleware lets users connect with node operators and stake their digital assets without the need to individually maintain hardware.
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