Lido is a DAO (Decentralized Autonomous Organization) that seeks to offer better liquid staking services to improve stability and safety for Ethereum.
Since its launch two years ago, Lido Finance has become one of the leaders in the Ethereum market for liquid staking. Reportedly, Lido has the biggest TVL (total value locked) in decentralized finance (DeFi).
A big challenge in Proof of Stake (PoS) blockchain staking is represented by the staked assets’ liquidity when they are locked. This doesn’t allow consumers to have access to them until the lock-up time expires. Users who are in this situation are denied the chance to benefit from extra yields from the market’s other DeFi protocols. Furthermore, high entry barriers and complex validator setups are other obstacles preventing general users to take part in PoS staking. Also, holders of ETH have proven to be hesitant to put their coins as stake because of a gap in incentives.
Lido DAO was designed to address the issues mentioned above. The organization’s purpose is to turn liquid staking into a trustless action, without involving any centralized entities in staking, depositing, or withdrawing crypto on the protocol. Through liquid staking, protocol users can stake their crypto to obtain interest with low-risk levels. At the same time, users can maintain the liquidity of their funds to ensure maximum capital efficiency.
