"Stede", besides German Stadt, Swedist stad, etc. is cognate to English stead, fossilized and now only occuring in the adverb "instead"/"in (someone's) stead" and a few compounds such as "farmstead" and "steadfast" (literally meaning "standing firmly (in place)"). "Steady" is of course also related.
It survives in modern Dutch too: in bedstede, steevast etc. Steevast mostly means always, but sometimes means firmly similar to modern English steadfast.