Lido DAO (LDO)

Lido DAO (LDO) is a decentralized liquid staking protocol that enables users to stake cryptocurrencies while maintaining liquidity over their assets. It was designed to make Proof-of-Stake participation more accessible by removing minimum staking requirements and lock-up limitations.

Launched in 2020, Lido initially focused on Ethereum staking but has since expanded to support multiple Proof-of-Stake networks. Instead of running validator nodes independently, users deposit assets into the Lido protocol, which stakes them on their behalf through a distributed validator set.

In return, users receive tokenized staking derivatives — such as stETH (staked ETH) — representing their staked assets plus accrued rewards. These liquid tokens can be used across DeFi applications while the underlying assets remain staked.

This model solves two major staking limitations:

• Illiquidity during staking lock periods
• Technical complexity of running validators

Lido’s liquid staking tokens can be used for:

• DeFi lending and borrowing
• Liquidity provision
• Yield farming strategies
• Collateral within decentralized protocols

The protocol is governed by Lido DAO, where the LDO token functions as the governance asset. Token holders vote on validator selection, fee structures, treasury management, and protocol upgrades.

LDO itself is not a staking receipt token but a governance and coordination token that shapes the strategic direction of the ecosystem.

Lido has become one of the largest staking providers in the Ethereum ecosystem, playing a significant role in network validation and staking participation.

While liquid staking improves capital efficiency, it also introduces considerations around validator concentration and systemic risk within DeFi.

In summary, Lido DAO provides liquid staking infrastructure that allows users to earn staking rewards while retaining asset flexibility across the Web3 economy.