'Staked Ether' Becomes Focus of Crypto Stress, From Celsius to Three Arrows
— Help process transactions, Provide liquidity, System, Stress, Transitioning, Proof, Participants, Steth, Ethereum, Arrows — 1 min read
Staked ether was launched by decentralized-finance platform Lido Finance as a way to provide liquidity to traders who are "staking" their ether on the Beacon Chain. Participants in the system have to commit to locking up their tokens for a period of time to help process transactions. In the meantime, they can take stETH tokens and continue to trade. It's all part of the process by which the system is transitioning to a "proof-of-stake" blockchain, which will be called "Ethereum's" new "Proof of Stake" system. In return, participants receive crypto rewards in the process of "staking" their tokens to process transactions in the new way of using the Beacon chain, say Lido. Source