Hello,
Please, I need to know how LST generates rewards?
Hypothetical example:
- User stake 10 ETH on Lido.
- Received 10 stETH.
- After 1 year, the reward from Lido is 3% - 0.3 ETH
- 0.3 ETH generated (User Stake / Lido Pool) * All Lido Rewards - 10%
- All Lido Rewards - all confirmed block rewards (transaction fees - burl fees) by Lido nodes.
- User stake 10 stETH on EigenLayer.
- After 1 year, rewards from EigenLayer?
- How are rewards generated?