Explore Lido Finance®, the leading liquid staking solution for Ethereum, Solana, and more. Learn how Lido enables DeFi integration, passive income, and secure staking with unmatched flexibility.
Lido Finance® is a decentralized staking protocol that enables users to stake digital assets such as Ethereum (ETH), Solana (SOL), and Polygon (MATIC) while maintaining liquidity. Traditionally, staking required locking assets for extended periods, but with Lido, users can stake their crypto and receive liquid tokens (like stETH for Ethereum) that can be freely used in decentralized finance (DeFi) applications.
Founded in late 2020 in response to Ethereum 2.0’s need for long-term staking, Lido quickly rose to become the largest liquid staking solution on Ethereum and has since expanded its services to other major PoS (Proof of Stake) blockchains.
Staking is essential for network security and consensus in PoS blockchains. However, standard staking mechanisms limit users by locking their funds, thus excluding them from participating in other DeFi activities. Lido solves this issue by introducing liquid staking, allowing stakers to retain control of their funds and use them elsewhere, all while earning staking rewards.
This innovation bridges the gap between passive income generation and active DeFi participation.
When users stake their ETH through Lido, they receive stETH (staked ETH) in return. This token reflects their staking balance and accumulates rewards daily. stETH can be traded, lent, or used as collateral across various DeFi protocols.
Other tokens issued include:
Lido does not hold user funds in a centralized system. Instead, it delegates the assets to a network of professional node operators chosen by the DAO (Decentralized Autonomous Organization). This ensures trustless, secure staking with full transparency.
The Lido DAO governs protocol upgrades, treasury management, and validator onboarding. Anyone holding LDO tokens, the native governance token of Lido, can participate in proposals and vote on key decisions.
stETH and other Lido-issued tokens are supported by leading DeFi platforms like:
Here’s a step-by-step overview of how Lido’s staking system functions:
No more lock-ups. With stETH and other Lido derivatives, users maintain full liquidity while earning rewards.
Staking through Lido means your assets are spread across multiple, high-quality validators, reducing risk.
The platform is intuitive and accessible, even for beginners. Just connect your wallet and stake.
Use your liquid tokens in DeFi protocols to earn compound yields, far beyond basic staking rewards.
Stake across various chains and receive unified access through one decentralized interface.
Lido’s native token, LDO, powers governance on the platform. Token holders can vote on key proposals such as fee structures, validator onboarding, and protocol upgrades.
Key uses of LDO:
Ethereum’s transition to Proof of Stake (PoS) increased the demand for reliable staking solutions. Lido has emerged as a pillar of Ethereum 2.0 infrastructure, accounting for a significant portion of all staked ETH.
Since the Shanghai upgrade, users can now unstake ETH directly via the Lido interface. This milestone further boosts Lido’s utility and user trust.
Lido’s contracts are open-source and undergo regular audits from industry-leading firms such as:
No minimum staking amount is required, making it accessible to anyone.
Lido continues to innovate in the liquid staking space. Upcoming features include:
Lido Finance® is revolutionizing how staking works across Ethereum and other leading blockchains. By providing liquidity, flexibility, and security, Lido empowers users to earn more from their crypto while participating actively in DeFi.
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