What is Lido DAO (LDO)?

Lido DAO is a decentralized autonomous organization (DAO) that addresses key challenges of staking on Proof-of-Stake (PoS) blockchains, such as illiquidity and high entry barriers. By offering liquid staking, Lido allows users to stake their cryptocurrencies and receive tokenized representations of their staked assets, known as stTokens, on a 1:1 basis. These tokens, like stETH for Ethereum staking, provide liquidity, enabling users to earn staking rewards while using their stTokens in decentralized finance (DeFi) activities such as yield farming and lending.

The purpose of Lido DAO is to simplify staking for all users and make it more inclusive. With no lock-up requirements or technical expertise needed, Lido empowers participants to earn rewards while maximizing their earning potential across the DeFi ecosystem.

The History of Lido DAO

Lido DAO was launched in 2020 to address the illiquidity of traditional staking methods, where assets were locked and inaccessible for long periods. Its liquid staking model unlocked the potential for users to earn staking rewards while retaining liquidity.

Initially focusing on Ethereum, Lido capitalized on the network's transition to Proof-of-Stake to provide a seamless and accessible staking experience. Over time, it expanded to support other major blockchains, such as Polygon, offering its liquid staking model to another user base.

LDO: The Native Token

The LDO token is the native governance token of the Lido DAO. Its main role is maintaining the platform's decentralized structure and ensuring active community participation in decision-making processes. Each LDO token represents one vote, allowing holders to influence any proposed protocol operations, such as validator selection, fee structures, protocol upgrades, and more.

Lido DAO Ecosystem

Supported Blockchains

Lido started with Ethereum and has since expanded to other major Proof-of-Stake (PoS) blockchains, offering its liquid staking model to a wider audience. Some of the blockchains supported by Lido include:

Ethereum: Users stake ETH and receive stETH, which can be used in DeFi platforms to generate additional yields.
Polygon: Stake MATIC to receive stMATIC, enhancing both network security and token utility.

DeFi Integrations

The stTokens issued by Lido can be used across DeFi protocols, including Curve, Maker, and Yearn, to further amplify yields.

Buy and Sell LDO in a Crypto IRA at iTrustCapital

For those looking to buy and sell Lido DAO (DAO), platforms like iTrustCapital provide access to a tax-advantaged Crypto IRA*, combining the growth potential of digital assets with the benefits of a retirement account.

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DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a digital asset IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with LDO. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

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