What Is Lido DAO (LDO) and How Does It Work?
Lido DAO is a decentralized
liquid staking protocol that allows users to stake cryptocurrencies like
Ethereum (ETH),
Solana (SOL), and
Polygon without locking their tokens. When you stake with Lido, you receive a liquid token (like stETH for Ethereum) representing your staked assets. These liquid tokens continue to earn
staking rewards and can be used across various
DeFi applications.
The protocol is governed by the Lido DAO, a
decentralized autonomous organization powered by the LDO token. LDO holders vote on key protocol decisions, including
validator selection, fee structures, and development upgrades. This model ensures Lido remains decentralized, transparent, and adaptable as the staking ecosystem evolves.
Lido simplifies staking by removing minimum requirements and lockup periods, while maintaining security through audited smart contracts and a vetted validator set. As of June 2025, Lido remains the largest liquid staking provider in the Ethereum ecosystem.
How Does Liquid Staking Work with Lido Protocol?
Liquid staking with Lido allows you to stake your tokens, like
ETH or
SOL, while still keeping them accessible and usable within DeFi. Here's how it works:
1. You stake tokens (e.g., ETH) through the Lido platform.
2. Lido delegates your assets to a decentralized set of professional validators.
3. You receive liquid tokens (e.g., stETH) in return at a 1:1 ratio. These represent your staked assets.
4. stTokens accrue rewards daily, reflecting your staking earnings automatically.
5. You can use stTokens in DeFi, to lend, provide
liquidity, or trade, without needing to unstake.
When you're ready to exit, you can either sell your stTokens on an exchange or request a withdrawal to convert them back into the original token (like ETH). This design offers the best of both worlds: staking rewards and liquidity.
When Was Lido DAO Launched?
Lido DAO officially went live in December 2020, just after Ethereum’s Beacon Chain launched on December 1, 2020. Created to solve ETH staking limitations, no more 32 ETH minimums or locked assets, Lido introduced liquid staking via stETH.
Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish are the core founders of Lido DAO. Seed funding (~$2 M in Dec 2020) came from investors like Semantic VC, ParaFi, Terra, KR1, StakeFish, and individuals such as Stani Kulechov (
Aave), Kain Warwick (
Synthetix).
Lido Roadmap & Expansion
• 2021–2022: Extended support to Solana (Sept 2021), Polygon (Nov 2021),
Polkadot &
Kusama (Feb–May 2022).
• Sunsetting: Discontinued Terra (Aug 2022), Polkadot/Kusama (Aug 2023), and Solana (Feb 2024) support due to strategic shifts .
• L2 Focus: In 2024, launched ‘Advanced DeFi Strategies for stETH’ (Jun), ‘Decentralized Validator Vault’ (Aug), and broadened wstETH across seven
Layer‑2 networks under the Dencun/L2 roadmap.
What Is LDO Token Utility?
LDO is the governance token of the Lido DAO. It allows holders to vote on key decisions such as protocol upgrades, validator selection, fee structures, and treasury management. This ensures decentralized control over the Lido staking protocol. LDO also plays a role in aligning the incentives of stakeholders, including
node operators, developers, and community members.
You can trade LDO tokens on
BingX Spot by searching for the
LDO/USDT pair, entering your desired buy or sell amount, and placing a
market or limit order. Once the trade is executed, your LDO balance will be updated in your BingX wallet.
What Is Lido DAO Tokenomics?
Lido DAO (LDO) has a fixed
total supply of 1 billion tokens, with no plans for inflation.
LDO Token Allocation
• 36.32% – DAO Treasury: For future development and community initiatives
• 22.18% – Investors: Early backers and strategic partners
• 20.00% – Initial Developers: Core contributors and development teams
• 15.00% – Founders & Future Employees: Subject to vesting
• 6.50% – Validators & Signature Holders: Node operators and technical partners
How to Unstake and Withdraw stETH from Lido
Unstaking stETH from Lido is a simple process that lets you convert your liquid staking tokens back into ETH through the official Lido interface.
1. Request Withdrawal: Go to stake.lido.fi/withdrawals, connect your
wallet, and enter the amount of stETH or wstETH to unstake.
2. Receive Withdrawal NFT: Once confirmed, you'll receive a withdrawal
NFT representing your pending ETH claim.
3. Wait for Exit Queue: The unstaking process takes about 1–5 days, depending on Ethereum network conditions.
4. Claim ETH: When your withdrawal is ready, go to the Claim tab and redeem your ETH by burning the NFT.
5. Fees: No Lido service fees apply, but you’ll pay standard Ethereum
gas fees for transactions.
What Blockchain Networks Does Lido Protocol Support?
As of 2025, Lido Protocol supports liquid staking primarily on the Ethereum network, offering stETH and wstETH as liquid staking tokens. While Lido previously expanded to other chains like Solana, Polygon, Polkadot, and Kusama, it has since sunset support for these networks due to strategic realignments. Today, Lido’s core focus is Ethereum, including broad compatibility with major Layer 2s such as
Arbitrum,
Optimism, and Base, enabling users to use wstETH across a wide range of DeFi protocols while earning staking rewards.
What Are the Risks of Lido's Liquid Staking?
Lido’s liquid staking comes with several risks, including
smart contract vulnerabilities, which could lead to loss of funds if exploited. There’s also validator risk; if node operators misbehave or are slashed, users may lose a portion of their staked ETH. Additionally, liquidity risk arises during high-demand periods, where exiting the staking queue may take longer or trading stETH for ETH on secondary markets may involve price slippage. Users are also exposed to DeFi composability risks, especially if they use stETH in other protocols that themselves carry vulnerabilities or insolvency issues.
How to Store LDO Tokens Securely
The easiest and most convenient way to store LDO tokens securely is by using your BingX account wallet. When you purchase LDO on the BingX Spot market, your tokens are automatically stored in your BingX wallet, which is protected by advanced security measures including two-factor authentication (
2FA), encrypted infrastructure, and withdrawal whitelist features. This option is ideal for active traders or users who prefer keeping their assets on a regulated exchange with user-friendly portfolio access.
For long-term storage or added control, you can also store LDO in
non-custodial wallets like
MetaMask,
Trust Wallet, or
hardware wallets such as
Ledger and Trezor. These wallets give you full ownership of your
private keys and can connect to Ethereum-based dApps for governance participation in the Lido DAO. For maximum security, especially if you’re not trading frequently, a hardware wallet is recommended, as it stores your tokens offline and protects them from
phishing, malware, and exchange-related risks.
Is Lido (LDO) a Good Investment?
Lido (LDO) is considered a strong investment by many in the crypto market due to its dominant role in the liquid staking sector, especially on Ethereum. As the largest liquid staking protocol, Lido makes staking more accessible by removing barriers like the 32 ETH minimum and token lockups, allowing users to earn yield while retaining liquidity through stETH. This utility has made Lido deeply integrated into the DeFi ecosystem, with stETH being widely used across lending platforms,
DEXs, and Layer 2 networks. As Ethereum continues to grow post-merge and staking demand increases, Lido stands to benefit significantly from higher adoption and staking volumes.
The LDO token also provides governance power over one of the most important infrastructure protocols in
Web3. Holders can vote on key decisions such as validator onboarding, fee changes, protocol upgrades, and treasury management. With Lido’s focus shifting toward decentralization and cross-chain expansion, LDO could gain additional utility and influence in the future. However, like all crypto assets, investing in LDO carries risks, including protocol security, regulatory developments, and market volatility, so it’s important to assess your risk tolerance before investing.