ido Dao is an open-source ‘Liquid Staking’ platform for Proof-of-Stake (PoS) blockchains, which first launched in December 2020 when Ethereum 2.0 (Beacon Chain) entered ‘Phase 0’. The objective is clear, provide 100% flexibility for Ethereum stakers!
Generally, when users stake crypto, it requires them to lock the tokens up without being able to use them until they un-stake their tokens. However, Liquid Staking allows users to access and use their staked tokens. This provides users with complete control over their assets.
Lido DAO offers small investors the chance to earn from staked Ethereum, unlike the Ethereum network which requires users to stake ETH in multiples of 32 which roughly costs a minimum of $50k, at the time of writing.
How does Lido Finance work?
In layman’s terms, Lido DAO allows users to stake any amount of ETH, which will reward users in stETH which is worth the same amount of ETH that was initially deposited.
As I mentioned, your staked Ethereum aka stETH is completely liquid, which means it can be used across the entirety of decentralised finance (more on available dApps below) so you can compound into more rewards, while also receiving rewards just for holding stETH.
Even though Lido DAO first launched on the Ethereum mainnet, it is actually a cross-chain compatible protocol, which is also available on the Solana and Polygon networks. Polkadot and Kusama have now been removed from Lido.
Lido Finance has integrated with over 27 DeFi applications that utilise stETH, such as Curve Finance, 1inch, Aave and other large protocols. The protocol has an astonishing TVL of over $12.3B and is home to over 327k users who utilise Liquid Staking.
Lido Staking Rewards
Each network compatible with Lido Finance will offer a different staking APR%, for example as it stands these networks offer:
Ethereum – 3.7% APR – $13.6B+ Staked
Polygon – 4.2% APR – $74.6M+ Staked
Solana – 6.5% APR – $47.4M+ Staked
Although the APR will vary, the rewards are still great and sustainable and as I mentioned, you can earn extra rewards by pooling or staking your stETH.
An example of restating your stETH, is the newly built EigenLayer, which allows users to retake staked Ethereum. Double up on those rewards ladies and gentlemen.
The upgrade everyone was waiting for. Ethereum Withdrawals. That’s right, staked Ethereum can now be withdrawn from the platform. Lido users will be able to withdraw and unstake their staked Ethereum (stETH) for a 1:1 swap back to ETH. This significantly improves the overall user experience and provides users with more freedom over their assets.
This was not possible for most of its lifespan, but that is now a memory of the past that we can forget. We can now enjoy superior staking freedom!
More is coming with the upgrade, but the withdrawal feature has been most anticipated!
Native to the Lido DAO protocol is the LDO token which is primarily used for governing the protocol. Users who hold LDO have the right to vote on decisions such as fees, upgrades etc.
The more LDO tokens you hold, the more voting power you receive.
How to buy Lido DAO LDO
LDO is available on the Ethereum, Polygon and Solana networks and on 99.99% of major centralised exchanges.
There are two main ways to buy LDO, but you will always go through a centralised exchange (CEX). Here are the options:
Option 1- Centralised Exchange
We recommend using one of these centralised exchanges when buying or trading the LDO token. Here is a list of CEXs with a few delicious promotions:
- Binance - The most popular CEX in the world
- ByBit - EARN UP TO $30K in DEPOSIT BONUSES
- BitGet - Trade on BitGet and receive 0% Deposit Cashback + $5,000 DEPOSIT BONUSES
- Coinbase - Spend $100 and Get $10 back!
Option 2 - DeFi Wallet & Decentralised Exchange
To get started you will need a DeFi wallet and make sure to secure your seed phrase with a hardware wallet (Trezor):
If you are buying LDO through your DeFi wallet, we recommend using the Polygon network which requires MATIC tokens for gas fees. Alternatively, you can use the Solana network which is also cheap in gas fees (SOL). If you haven’t set up the Ethereum, Polygon or Solana networks, you can follow our YouTube tutorials down below. Here are the essential links:
How To Use Lido Finance
You don’t need LDO, as I mentioned it is simply the Governance token. If you wish to utilise the platform, you must hold Ethereum ETH and you must stake the amount you wish to make liquid.
E.g. User turns 1 ETH into 1 stETH which earns around 3.9% APR, to then earn an extra yield on Aave or Curve Finance for example.
For more on Lido Finance and similar protocols, you can check out our YouTube channel
Lido DAO has really made a scene in the DeFi industry by providing users with full flexibility over their assets.
The Ethereum network is more expensive to use and stake, however, the cross-chain compatibility allows users to stake on cheaper networks if they please!
At the time of writing, the LDO token is priced at $1.5 with a market cap of over $1.3B. LDO once peaked at $11+ and had a market cap of over $2.7B! Lido Finance will thrive in the next bull run. It is currently the leading protocol by TVL and has so much potential to grow!
Liquid Staking Derivatives, also known as LSDs is potentially one of the greatest initiatives, even though the idea is very simple. Like Bruce Lee once said, “Simplicity is the key to brilliance.”
There is competition for Lido Finance, we now have Rocket Pool rETH and Coinbase Staked Ethereum, cbETH. I’m sure there will be more to come, but Lido Finance is leading the pack, that’s a fact.