# superfest

The Superchain DeFi festival

All
DeFi
Resources
Developer
NFTs

Lido

### What Lido is an open source tool and family of protocols that enables users to mint liquid staking tokens (sTokens) - These liquid staking tokens receive rewards from validation activities of writing data to the blockchain, but unlike their staked counterparts, are "unlocked" which means they can be used in other on-chain activities, like DeFi. Lido protocols let users stake native tokens (ETH, MATIC, SOL) from Ethereum, Polygon, and Solana networks in a fully permissionless way. And as the protocols are deployed on public blockchains, users do not need the website to access the smart contracts. ### Why Traditional staking means that users need to lock-up their ETH or other native asset to be able to secure the network and receive the respective rewards. However, this means that these tokens can't be used for anything else while they are staked. Lido aims to solve this problem. Lido protocols give users liquidity - users are able to receive staking rewards from validation activities, but can sell their stTokens (tokens minted on Lido) anytime they want to exit their staking position. In addition, it allows users to participate in DeFi while getting rewards - Because sTokens are unstaked and thus "liquid", users can use stTokens as building blocks in DeFi protocols at the same time as getting staking rewards from validating activities. The Lido DAO also works with experienced node operators, which decreases the likelihood of technical mistakes that could lead to slashing or penalties and minimizes the technical burden for users to receive staking rewards. Users supply the stake, and the node operators supply the know-how.

Uniswap

Uniswap is a decentralized exchange protocol (DEX). It allows people to set up or contribute to liquidity pools consisting of various ERC-20 token pairs, or to use the available liquidity to swap their tokens against another using its Automated Market Maker (AMM) mechanism. ### Why AMMS are one of the building blocks in the crypto space as they always provide users with a price between two assets. Uniswap uses a simple X * Y = K, formula to price assets where x is the amount of one token in the liquidity pool, and y is the amount of the other. k is a fixed constant, meaning the pool’s total liquidity is always the same. ### Risk There are various risks involved with using AMMS. These include but are not limited to: Protocol Risk - risk due to mechanics in the design of a protocol. Even when the protocol functions as intended there might be risks e.g. high slippage incurred in trades due to the liquidity curve set-up Smart contract risk - This is risk from an error in the code causing the contract to operate in ways unexpected by the developers. It might leave the code vulnerable to exploits or other attacks Cybersecurity risk - Hackers, Exploiters or other malicious actors trying to attack Uniswap ### Reward Uniswap is arguably one of the largest AMMs in crypto and is usually the protocol where tokens find the most liquidity. Its UI/UX is extremely simple and users can trade most tokens with little problems.