Lido DAO

What is Lido DAO?

Lido DAO, an open-source family of peer-to-system software tools, operates on Ethereum, Solana, and Polygon blockchain networks. The software facilitates the creation of transferable utility tokens, earning rewards tied to validation activities that involve writing data to the blockchain. These tokens can be utilized in various on-chain activities.

Although the specifics vary across networks, the general process involves Lido protocols batching user tokens for staking with validators. These staking packages are then directed to network staking contracts. Users mint stTokens corresponding to the staked token amount, earning staking rewards. Upon unstaking, users burn the stToken to initiate the network-specific withdrawal process, allowing them to withdraw the stake balance and accumulated rewards.

LDO is an ERC20 token that grants individuals the opportunity to engage in the governance procedures of the Lido DAO. Through the voting power conferred by the governance token (LDO), the Lido DAO makes decisions on crucial parameters of the liquid staking protocols. Holding the LDO token empowers individuals to actively participate in the voting processes conducted within the Lido DAO.

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Recent Video Interview

Main points of the interview:

• Lido's Uniqueness: Lido is decentralized, unlike centralized competitors like Coinbase and Binance.
• Future Plans: increase decentralization and introduce new features such as dual governance and community staking.
• Challenges: Balancing decentralization with incentivizing small players without favoring large ones.
• Technological Adoption: Lido balances cutting-edge technology and security to maintain Ethereum’s reliability.

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What Makes Lido DAO Unique?

Lido protocols provide users with liquidity, as the stTokens exist on the execution layer and can be freely transferred. Users not only earn staking rewards from validation activities but also have the flexibility to sell stTokens whenever they wish to exit their staking position.

Participating in DeFi is made seamless, as users can leverage stTokens as fundamental components within DeFi protocols while concurrently earning staking rewards from validation activities.

The governance of Lido protocols is entrusted to the Lido DAO, ensuring that decisions are decentralized. There is no singular authority with access, control, or decision-making power over users' tokens. All protocol-related decisions are subject to voting by the DAO, allowing every LDO holder to participate in the decision-making process.

Lido DAO collaborates with seasoned node operators, minimizing the risk of technical errors that could result in slashing or penalties. Users contribute the stake, while node operators contribute their expertise, establishing a symbiotic relationship within the Lido ecosystem.

Lido DAO's Security

To ensure a secure working environment, Lido adheres to the following principles:

• Open-sourcing and ongoing scrutiny of all code.
• Establishment of a committee comprising elected, top-tier validators to mitigate staking risks.
• Implementation of a non-custodial staking service to eradicate counter-party risks.
• Utilization of a DAO for governance decisions and risk factor management.
• Additionally, Lido has undergone audits conducted by Certora, StateMind, Hexens, ChainSecurity, Oxorio, MixBytes, SigmaPrime, and Quantstamp.

Lido DAO Team Background and Partners

Lido, founded in 2020, was established by Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish. The organization received support for its launch from a consortium of financial firms and angel investors.

Financial firms contributing to the establishment of Lido include Semantic VC, ParaFi Capital, Libertus Capital, Bitscale Capital, StakeFish, StakingFacilities, Chorus, P2P Capital, and KR1.

A select group of angel investors also played a pivotal role in Lido's inception. Notable individuals among them include Stani Kulechov from Aave, Banteg from Yearn, Will Harborne from Deversifi, Julien Bouteloup from Stake Capital, and Kain Warwick from Synthetix.

In addition, there are over 80 apps and services that are intergrated with the Lido ecosystem, namely MetaMask, Curve, Balancer, Ledger, 1inch, iToken, Exodus, OKX Launchpad, Atomic Wallet, Convex...

Lido DAO Project Development

Hashnote has introduced the Institutional stETH Fund, a regulated fund based on the Lido Staked Ethereum (stETH), providing an institutional-grade liquid staking solution. This fund leverages the concept of liquid staking, pioneered by the Lido protocol and stETH, enabling users to have immediate liquidity on their staked ETH while participating in network consensus. The fund targets regulated institutions, offering them a compliant, secure, and transparent structure built on the decentralized Lido liquid staking middleware. The liquidity of stETH is enhanced, with markets quoting it directly against fiat and stablecoins, making it nearly as liquid as Ethereum itself.

Lido DAO Price Analysis

As of November 24 2024 Lido DAO has a marketcap of $1.2B. This is {{percentagefromath}} from its all time high of $7.30. In terms of its tokenomics, there's a total supply of 1B with 90% currently outstanding. Keep in mind Lido DAO has a fully diluted value of $1.4B which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.