What is Lido Finance?
Lido Finance is the first and largest liquid staking protocol, allowing users to stake various cryptocurrencies while maintaining liquidity of their assets. Founded in 2020, Lido addresses the limitations of traditional staking by providing liquid staking options, enabling users to earn staking rewards without locking up their assets. This is achieved through the issuance of derivative tokens, such as stETH for Ethereum, which represent staked assets and can be used in other DeFi applications.
Lido operates under a decentralized autonomous organization (DAO) structure. Governance decisions are made using Lido's native utility token, LDO, which is used for voting on platform updates and fee management.
Users can stake any amount of tokens without minimum requirements and receive daily rewards. The liquid staking model allows users to use staked assets as collateral in various DeFi activities like lending and yield farming, thereby maximizing their earning potential. The platform also employs a multi-validator system to decentralize risk and enhance the security of staked assets.
Lido is designed to be accessible to both new and experienced DeFi users. The platform's intuitive interface simplifies the process of staking and managing assets, supported by extensive educational resources, including FAQs, blogs, and help centers. The Lido DAO allows LDO token holders to participate in governance decisions, ensuring transparency and community involvement in the platform's evolution.
Lido integrates with popular DeFi wallets like TrustWallet and MetaMask, providing users with convenient options to manage their staked assets. The platform's derivative tokens, such as stETH, can be traded on various exchanges including SushiSwap, Uniswap, and 1inch.
Lido applies a 10% fee on staking rewards, which is distributed between node operators and the protocol’s treasury. This fee structure is transparent and aligns with industry standards for staking services. Additionally, users may incur Ethereum gas fees based on network activity.