In this 2022 Crypto Review, we’ll discuss the following topics about Lido DAO:
- What is Lido DAO?
- Is Lido good for staking?
- What can I stake on Lido?
- Does Lido have a token?
- How do you buy Lido DAO?
- Is Lido DAO a good investment?
What is Lido DAO?
Lido DAO is a simple and essential tool created to unlock the blockchain's full potential for Staked assets. Lido enables users to earn staking rewards without the need to lock up their assets in a traditional staking infrastructure. This form of liquid staking allows users to retain the value of the original asset on Ethereum by creating a staked version called stETH (staked Ethereum) to use in other Defi protocols. This lets anyone who wishes to stake their Ethereum or other tokens earn rewards without losing the liquid value of that asset. In a standard staking situation, you would lock your Ethereum into a protocol and that’s it. While you earn rewards for doing so, you no longer have your Ethereum.
Currently, most individuals who decided to stake their Ethereum directly have no specific timeframe for when their ETH will be unlocked before the ETH 2.0 upgrade. Lido DAO rejects this idea and opens the door to better and more profitable methods of staking.
When users deposit their assets into a Lido DAO Smart Contract and receive their stETH, the Lido DAO contract then stakes the users' tokens with a node operator chosen by the DAO.
However, these funds remain in control of the DAO and not the operator.