This article will introduce the Lido Live App and explain the stETH token.
Understanding the Lido Live App
Lido is a third-party staking service that lets Ethereum users stake their ETH coins onto the Ethereum 2.0 network and earn interest in exchange. The Lido Live App is not operated by Ledger but by the Lido team through Ledger live.
It's important to note that the Ethereum network you can access via Ledger Live and the Ethereum 2.0 network are not the same network. Eventually, these two networks will merge and become "just Ethereum" but, for now, they’re distinct. You can learn more about the merge here.
In practical terms, this means that any ETH balance staked via Lido through Ledger Live will be locked (on Ethereum 2.0) until Ethereum 1.0 and Ethereum 2.0 finally merge. The timeline for the merge is currently estimated to be Q1/Q2 2021 but this could be pushed back. You can follow the latest news about the merge here.
To make up for the loss of liquidity (your ETH being locked and unavailable to trade), Lido will send you a number of stETH tokens equivalent to the amount of ETH locked plus daily stETH rewards. You can learn more about this here.
Understanding the stETH token
stETH is also liquid. This means that it can be freely traded and transacted in and out of your Ledger wallet like any other ERC20 tokens. You can learn more about managing ERC20 tokens here.
Finally, your Ledger stETH balance will update daily to account for stETH rewards. This update is automatic and does not require a transaction to your Ledger wallet. You can learn more about this automatic rebase mechanism here.