Buy Lido DAO

Lido is the largest liquid staking protocol in crypto, and LDO is the token used to help govern it. Lido lets people stake cryptocurrencies like Ethereum while keeping access to their funds, and LDO is used to vote on how the protocol is run.

It helps to separate a few names. Lido is the liquid staking protocol, Lido DAO is the decentralised organisation that governs it, and LDO is the governance token. People often refer to all of these simply as "Lido," but when you buy LDO, you are buying the governance token, not staking crypto directly.

Normally, staking involves locking up your crypto to help secure a network, which means you cannot use it while it is staked. Lido changes this through liquid staking. When you stake through Lido, you receive a token in return, such as stETH for staked Ethereum, which represents your staked funds and can still be used elsewhere while you earn staking rewards.

What is Lido DAO used for?

Lido is mainly used for liquid staking, while LDO is used for governance. LDO is the governance token used to help manage the Lido protocol.

LDO is used to:

• vote on decisions about how the Lido protocol is run
• take part in the governance of Lido DAO
• be held and traded as the protocol's governance token

It is worth being clear about the difference between using Lido and holding LDO. People who want staking rewards stake crypto such as Ethereum through the Lido protocol and receive a token like stETH in return. LDO, on the other hand, is the governance token. Holding LDO lets you take part in decisions about the protocol, but it does not by itself earn staking rewards.

LDO has a maximum supply of 1 billion tokens, all created when the project launched. It is not mined, and its role is focused on governance rather than processing transactions on its own blockchain. Like other DeFi tokens, LDO can be volatile, and liquid staking itself carries risks, including smart contract risk and changes in the value of staked assets.

The history of Lido DAO

Lido launched in December 2020, shortly after Ethereum began its move to Proof of Stake. At the time, staking Ethereum directly required locking up a large amount of ETH and running technical infrastructure, which put it out of reach for many people. Lido was created to make staking simpler and more accessible through liquid staking.

The protocol is governed by Lido DAO, with the LDO token used to vote on proposals and changes. You can find out more on the official Lido website.

Since launching, Lido has grown into the largest liquid staking protocol, holding a significant share of all staked Ethereum. People buy LDO for many reasons, including taking part in governance or gaining exposure to the Lido ecosystem and the wider world of decentralised finance.