What Is Lido DAO (LDO)? Enter The World Of The LDO Token with our article!

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I. What is Lido?

Lido is a liquid staking platform running on multiple blockchains that includes the Ethereum 2.0 Beacon blockchain. It allows users to stake their Ether (ETH) assets without requiring them to participate in maintaining the infrastructure and locking them. Lido intends to address these dilemmas by increasing staked ETH’s liquidity and lowering the requirements for stake participation to strengthen the network’s security.

What makes Lido’s derivatives interesting is that they are liquid, which means their depositors are free to use them on various DeFi applications while continuously earning passive income through staking yields. Users’ funds are deposited to Lido’s smart contract, locked in Ethereum’s proof-of-stake contract, and collectively controlled by the signatories selected by the platform’s decentralized autonomous organization (DAO).​

II. What is Lido DAO (LDO)?

The Lido DAO is a Decentralized Autonomous Organization that relies on the voting power of governance token holders to set key parameters. The DAO is a collective of service fees that can be spent on various activities through the platform such as research, development or protocol upgrades.

III. What is Lido DAO (LDO) token?

LDO is the native token of the Lido ecosystem. Its main use case is for the holders to receive the governing rights as one LDO is counted as one vote. It is also a MiniMeToken, a cloneable ERC-20 token created to conveniently multiply tokens with a matching balance distribution as their parent token.

Therefore, the more Lido DAO (LDO) tokens you hold, the more voting power you will have. Furthermore, the voting mechanism of the LDO token is adjustable and operable in parallel to other protocols on Lido.

LDO token is available at SushiSwap, Uniswap, Hotbit, Hoo, and DeversiFi.​

IV. Is Lido DAO (LDO) a good investment?

We have provided some of the main ideas related to the Lido DAO (LDO) token and its definition. Still, it is important to note that there are a few key points that investors should take into account before making investment decisions:​
  • The investor list of the Lido project is extremely impressive with Coinbase Ventures, Alameda Research and Three Arrows Capital on the list. Do you think that their power is enough to make Lido become a popular platform?​
  • The solution offered by Lido is necessary in order to grow DeFi and help users to maximize their fund’s usage. However, the interest rates provided are pretty low compared to other platforms with the same concepts such as Stafi.​

V. Core Features of the Lido DAO (LDO) Staking Protocol

Lido is ready to join the launch of ETH 2.0. Therefore, it aims to offset the high market risk associated with frozen assets in the structural design of Ethereum 2.0.​
  • Preserving value: Customers can stake ether in Lido smart contracts and receive tokenized staked ether called stETH in return. The tokens are subsequently staked by the DAO-controlled smart contracts with the DAO's chosen node operators.
    The stETH token can be transferred at any moment and is not subject to the restrictions associated with a lack of liquidity, unlike staked ether. The total amount of staked ether will be multiplied by rewards and deducted from any slashing penalties to determine the balance of the stETH token.​
  • Safety: Node validators do not have direct access to user funds throughout the staking process. In addition, Lido's bet Ether volume is fully auditable and does not rely on the private key management of a single party.​

VI. Lido DAO (LDO) - Frequently Asked Questions

1. How do I get Lido DAO (LDO)?

- LDO is available on a variety of exchanges such as Uniswap, SushiSwap, 1inch, DeversiFi, Hoo, Hotbit and Bilaxy.

2. Can I stake Lido DAO (LDO)?

- You currently cannot stake LDO. You can, however, provide LDO as liquidity in respective liquidity mining programs (eg. SushiSwap, 1inch).

3. What are the use cases for Lido DAO (LDO)?

- The LDO token is the governance token for Lido DAO. It is used to vote on protocol parameters and govern the constantly growing Lido DAO treasury.

4. What is the Lido DAO (LDO) vesting period?

- The tokens can be used for governance purposes but can’t move for one year from Dec 2020. In the year after that they will be unlocked and vested linearly on a per-block basis (so, in 1 year and 1 day about 0.3% of their total will be unlocked).

5. Why are transfers ofLido DAO (LDO) tokens more expensive than other ERC20 tokens?

- LDO tokens cost more when transferring because it's a Minime ERC20 token - for its usage with the Aragon DAO features - which has a bit more expensive mechanics under the hood. It has to track the balance history to prevent "vote-transfer-vote again" exploit.​


I hope you have gained all of the important information about Lido DAO (LDO)including its features and highlights throughout this topic. If you have any questions about LDO or want to know more about Lido DAO (LDO), let us know in the comment section below.​

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