> ## Content Index > Fetch the complete content index at: https://zipmex.com/llms.txt > Use this file to discover other available public pages before exploring further. # How Lido liquid staking works: stETH, fees, withdrawal times and risks - URL: https://zipmex.com/blog/how-lido-liquid-staking-works-steth-fees-withdrawal-times-and-risks/ - Published: 2026-10-20T18:34:03.000Z - Updated: 2026-10-25T00:46:05.000Z - Description: Lido takes 10% of staking rewards, not your ETH. How stETH and wstETH work, why withdrawals usually take 1–5 days, and the main risks. - Author: ZIPMEX - Tags: Crypto, #zipmex-newsroom You deposit ETH with Lido and receive stETH, a token that tracks your staked ETH and grows as staking rewards come in. Lido's staking page says it takes a 10% fee on staking rewards, split between node operators and the Lido DAO treasury. The fee is never taken from the ETH you deposit. To get ETH back, you request a withdrawal through Lido's queue. Lido's help centre says this normally takes 1–5 days, and longer when the queue is large or the protocol is in "bunker mode". The other way out is to sell stETH on the open market, where it can trade below ETH. ## What changed most recently - **30 January 2026:** The Block reported that Lido V3 "stVaults" went live on Ethereum mainnet. These are non-custodial smart contracts that let institutions, protocols and rollups set up their own staking (for example, picking node operators) while still minting stETH. They were first announced in February 2025\. For an ordinary staker, the core stETH product and withdrawal queue below did not change. - **Dual Governance:** In a guide dated 3 October 2025, Lido's blog explains how stETH holders can delay Lido DAO decisions. If escrowed stETH reaches 1% of total supply, proposals are delayed by 5 to 45 days, depending on how much opposition there is. At 10%, "rage quit" blocks all governance motions until the escrowed tokens are withdrawn. ## How staking with Lido works Ethereum's own staking needs 32 ETH per validator. Lido pools deposits so that you can stake a smaller amount. Lido's launch post (15 October 2020) said users could join "with any amount of ETH". Lido's current staking page states no minimum. The steps: 1. Connect a self-custody wallet to Lido's staking interface. If you are new to these, start with [what a non-custodial wallet is](https://zipmex.com/blog/non-custodial-wallet-only-you-hold-the-keys-to-your-funds/). 2. Enter an amount of ETH and confirm the transaction. You pay the Ethereum gas fee. Background: [how gas works on Ethereum](https://zipmex.com/blog/how-do-ethereum-smart-contracts-work/). 3. stETH arrives in your wallet. Lido assigns the pooled ETH to node operators, who run the validators. ## stETH and wstETH Lido's token integration guide describes two forms of the staked position. - **stETH rebases.** Your balance is recalculated "daily when the Lido oracle reports" the consensus-layer balance. Rewards show up as a rising token count, and the token aims to stay close to 1 ETH in value. A report can be delayed. When that happens, the rebase waits until the oracles reach quorum (5 of 9). Internally, Lido tracks "shares", and your balance is calculated from them. Because of rounding, a transfer can leave 1–2 wei behind, which is why Lido recommends `transferShares` for exact amounts. - **wstETH does not rebase.** It is a wrapped version whose balance stays fixed. Instead, its value in stETH increases over time. The current rate can be read from `wstETH.stEthPerToken()`. Many DeFi apps prefer it because a fixed balance is easier to integrate. For the wider picture, see our guide to [what DeFi is](https://zipmex.com/blog/what-is-defi-decentralized-finance-how-it-works-and-who-fixes-a-mistake/). ## What does Lido's 10% fee take from your rewards? Enter how much ETH you stake, an assumed yearly staking rate and the fee to see the rewards you keep after Lido's cut. ETH you stake with Lido (ETH)Assumption: Your own amount. Lido's current staking page states no minimum, and the article's worked example uses 5 ETH.Assumed yearly staking rate before the fee (%)Assumption: Your own estimate. Lido publishes no fixed APR and calls its APR figures estimates only. The article's 4% is an assumed rate, not a Lido figure.Lido fee on staking rewards (%)Assumption: Lido's staking page states a 10% fee on staking rewards, split between node operators and the DAO treasury. The fee level is set by DAO vote. ETH rewards you keep per year after the fee**0.18 ETH** __Worked examples (rewards kept per year = ETH staked × assumed yearly rate × (1 − fee on rewards))__ | ETH you stake with Lido | Assumed yearly staking rate before the fee | Lido fee on staking rewards | ETH rewards you keep per year after the fee | | ----------------------- | ------------------------------------------ | --------------------------- | ------------------------------------------- | | 5 ETH | 4 % | 10 % | **0.18 ETH** | | 5 ETH | 4 % | 10 % | **0.18 ETH** | | 32 ETH | 4 % | 10 % | **1.152 ETH** | - The staking rate is your own input. Lido says its APR figures are only estimates and can change at any time. - The fee is taken only from rewards, never from the ETH you deposit, so the amount you staked is not reduced by this calculation. This is arithmetic on your inputs only. It leaves out gas fees, slashing losses, the price stETH may fetch on the secondary market, the rewards you give up while a withdrawal waits in the queue, and tax. ## What the 10% fee takes Lido's staking page says: "Lido applies a 10% fee on staking rewards that are split between node operators and the DAO Treasury." It gives the net rate as Protocol APR × (1 − protocol fee) and says APR figures "are only estimates and subject to change at any time". Lido's Staking Router documentation explains how the fee is divided. Each staking module has a module fee, and the treasury has its own fee. The docs use 5% + 5% as an example, and the sum of the two must be equal across all modules. The fee level is set by DAO vote. A worked example, at an assumed rate rather than a Lido figure: 5 ETH staked at 4% earns 0.2 ETH a year before fees. The fee is 0.02 ETH and the holder keeps 0.18 ETH. Because the fee is a share of rewards, its size in ETH moves up and down with the network's staking yield. ## Getting ETH back: the withdrawal queue Lido's withdrawal contract documentation sets out the process. - **Request.** You lock stETH or wstETH in the queue. Each request must be between 100 wei and 1,000 stETH, so larger amounts need several requests. Lido's guide says: "Once requested, withdrawal cannot be canceled." - **NFT receipt.** You receive an unstETH NFT (ERC-721) that marks your place in a first-in, first-out queue. You can transfer it, and whoever holds it can claim the ETH. - **No rewards while waiting.** The ETH you receive is capped at the stETH amount at the time of the request. Rewards that build up while you wait are burned at finalisation and spread among other holders. - **Finalisation.** An oracle report finalises batches of requests. The report checks whether enough ETH is available from new deposits, validator exits and rewards, whether a timelock has passed, and whether there has been a major loss on the beacon chain. Withdrawals take priority over new deposits. - **Claim.** Once your request is finalised, you claim the ETH and the NFT is burned. ### How long it takes Lido's help article, dated 19 April 2024, says withdrawals usually take "anywhere between 1-5 days". The wait can be longer when: - the queue is large; - validators have to exit Ethereum's exit queue to free ETH; - staking and unstaking demand shifts; - bunker mode is active. This mode is triggered by extreme conditions such as mass slashings or many validators going offline. The contract reports this state through `isBunkerModeActive()`. After you submit a request, the estimated wait appears under the Claim tab. ## Why stETH can trade below ETH The queue is not the only exit. You can also sell stETH on the secondary market. Lido's integration guide lists the risk directly: users may get "an exchange price of stTokens which is lower than inherent value due to withdrawal restrictions on Lido". It also says that under some market conditions stETH can be bought at a discount. ## Risks to weigh Lido's integration guide names three risks; the fourth below comes from how the protocol is governed. - **Smart contracts:** "There is an inherent risk that Lido could contain a smart contract vulnerability or bug." - **Slashing:** "Validators risk staking penalties, with up to 100% of staked funds at risk if validators fail." Lido says it spreads stake across multiple node operators and keeps a reserve "paid from Lido Protocol fees" (help centre, dated 24 June 2026). - **Price:** the secondary-market discount described above. - **Governance:** LDO holders vote on fees and parameters. Dual Governance gives stETH holders power to delay decisions, but not to set them. Taxes on staking rewards and on swapping ETH for stETH depend on where you live. The rules that apply in the US are set out in [how DeFi swaps and staking rewards are taxed](https://zipmex.com/blog/defi-taxes-101-what-the-irs-rules-cover-what-is-unsettled/). Lido publishes no fixed APR, and its 1–5 day withdrawal estimate dates from April 2024\. This is general information, not investment or tax advice. Promotion · ZIPMEX ### Trade **Ether** perpetuals on ZIPMEX 135 marketsCrypto · stocks · gold · oil · FXPTS on every tradePTS → ZIPMEX tokens [Trade ETH-PERP](https://trade.zipmex.com/perps/PERP%5FETH%5FUSDC?utm%5Fsource=zipmex-news&utm%5Fcampaign=perps&utm%5Fmedium=article&utm%5Fcontent=story-192321) long or short · 24/7 [See all markets](https://trade.zipmex.com/perps/markets?utm%5Fsource=zipmex-news&utm%5Fcampaign=perps&utm%5Fmedium=article&utm%5Fcontent=story-192321) 135 markets on trade.zipmex.com Perpetual futures are leveraged derivatives. 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