What is Lido DAO
Lido’s DAO provides a stacking service for Etherium 2.0 and other proof-of-stake (POS) based blockchains This includes Solana (SOL), Polygon (MATIC), Polkadot (DOT) and Kusama (KSM).
The LDO is the network management token that the Lido DAO that gives its holders the right to vote on the future development of the platform.
The Lido DAO allows users to stake their tokens and earn rewards without minimum deposits or infrastructure maintenance. In this way, users can participate in on-chain activities such as compound returns and lending.
In order to manage the protocol in a decentralized manner, Lido launched a decentralized autonomous organization (DAO) to make key decisions regarding the operation of the protocol. This can ensure that the protocol is aligned with stakeholders‘ best interests and promote greater transparency and decentralization.
History of the Lido DAO?
The stacking platform was created in December 2020, just a few weeks after Etherium 2.0’s Beacon Chain was launched. Lido (LDO) was conceived as a solution to some of the technical and operational barriers to steaming on the Aetherium blockchain.
Lido DAO members include Semantic VC, ParaFi Capital, Libertus Capital, Terra, Bitscale Capital, StakeFish, StakingFacilities, Chorus, P2P Capital, and KR1. Lido has several important business angels, including Stanley Kulechev of Aave, „Banteg“ of Yearn, Will Harborne of Deversifi, Julien Buteloup of Stake Capital and Kane Warrick of Synthetix.
Challenges for LidoDAO
There are several challenges in stacking on the Aetherium blockchain.
Users can only place bets on amounts in multiples of 32 ETH. A certain degree of technical competence is required for the staking. In addition, ETH staked are locked with the initial phase of ETH 2.0 and cannot be used in other protocols.
Users cannot access or revoke the staking of their assets until the lock-in period has expired. This prevents them from being able to earn additional returns from other DeFi protocols on the market. The complex validation system and barriers to entry make it difficult for individual users to navigate.
stETH
stETH is a tokenized version of pledged assets that Lido uses to provide liquidity to users for their pledged PoS tokens. The stETH is mined when assets are deposited into Lido’s staking pool and is burned when users withdraw their ETH tokens. In this way, users can earn rewards for staking on Lido and participate in other activities on the DeFi chain for greater returns. stETh is tied at a 1:1 ratio to the underlying assets.
What is LDO used for?
The LDO provides governance rights to members of the DAO community and each holder has a vote in any decision-making process.
Other use cases for LDO tokens include assisting in the management of fee parameters as well as the addition or removal of any node from the network.
How do I buy Bitcoin?
1. Choose a crypto exchange
There are numerous cryptocurrency exchanges and exchanges that range from easy-to-use systems to complex dashboards for advanced traders.
Because LDO is so popular, you’ll be able to purchase the token on most cryptocurrency exchanges, but it’s advisable to stick to a few of the more popular exchanges like Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
2. Create an account and confirm it
Start with account registration, which is completely free on the aforementioned platforms. For added security, 2FA – two-factor authentication – is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID card/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade LidoDAO (LDO) as well as avail of various services such as staking.
3. Fund your account
Once your account has been registered and verified, you need to fund the account so you can start taking advantage of the platform’s buying and trading services.
The main deposit options are:
- Credit/Debit Card
- Bank deposit
- Peer-to-peer (P2P)
Where to buy Lido DAO?
