What Is It?

Lido is a liquid staking platform on Ethereum, Solana, Polygon, Kusama, and Moonriver.

About Lido

Lido is a single asset staking protocol that allows users to stake their tokens (ETH, MATIC, SOL, KSM, DOT) to earn staking rewards. Lido runs node operators responsible for running the validators to generate yields for token stakers. Users who deposit tokens are given a synthetic version of that token, known as a liquid staking derivative (LSD), which can be used on decentralized finance apps that Lido has integrated with to generate yields elsewhere. Lido’s goal is to make it possible to earn rewards for small deposits and at the same time unlock utility for staked assets without locking up assets.

Lido’s staking application was launched on 19 December 2020 with 1B LDO tokens minted at genesis. Lido currently has US$4.82B in total value locked (TVL) spanning across five networks. At the time of writing, Lido is also currently the fourth largest DeFi protocol on the Ethereum network, representing 10.3% of the entire network TVL.

Learn more about liquid staking derivatives (LSDs) here!

Products and Governance

lido products
lido liquid staking

Tokens and Tokenomics

LDO

LDO is the native utility token on Lido that is used for:

  • Granting governance rights in the Lido DAO
  • Managing fee parameters and distribution
  • Governing amendments to the node operators list

LDO is classified as a MiniMeToken

  • MiniMe tokens are cloneable ERC 20 tokens that are designed to easily spawn tokens that have the same balance distribution as the parent token at any given block number
  • This allows any developer the ability to give extra functionality to token holders and leave the original token unaffected
  • Transfers are relatively more expensive for Minime token standards for their usage with Aragon DAO features – which have the ability to prevent the “vote-transfer-vote again” exploit.
LDO supply and distribution

At the time of writing, 31% of the total token supply is in circulation. Current monthly emissions stand at 4,300,000 LDO which will be distributed across the supported pools and networks.

Similar Protocols

Appendix

  1. LDO Primer – https://help.lido.fi/en/
  2. MiniMe Token – https://github.com/Giveth/minime 
  3. LDO Tokenomicshttps://blog.lido.fi/introducing-ldo/
  4. LDO emission schedule – https://research.lido.fi/t/rewards-may-22-budget/2129 
  5. LDO token address – 0x5a98fcbea516cf06857215779fd812ca3bef1b32
  6. stETH token address – 0xae7ab96520de3a18e5e111b5eaab095312d7fe84
  7. stSOL token address – 7dHbWXmci3dT8UFYWYZweBLXgycu7Y3iL6trKn1Y7ARj
  8. stKSM token address – 0xFfc7780C34B450d917d557E728f033033CB4fA8C
  9. stMATIC token address – 0x9ee91f9f426fa633d227f7a9b000e28b9dfd8599
Disclaimer

This publication is provided for informational and entertainment purposes only. Nothing contained in this publication constitutes financial advice, trading advice, or any other advice, nor does it constitute an offer to buy or sell securities or any other assets or participate in any particular trading strategy. This publication does not take into account your personal investment objectives, financial situation, or needs. Treehouse does not warrant that the information provided in this publication is up-to-date or accurate.


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