Lido DAO (LDO), launched in December 2020, is a decentralized autonomous organization (DAO) providing liquid staking infrastructure for multiple blockchain networks, primarily Ethereum. Lido allows users to stake assets like ETH and receive liquid tokens (e.g., stETH) in return, enabling staked assets to remain usable in DeFi. Its native governance token, LDO, facilitates voting and protocol upgrades. With ~$35B in total value locked (TVL), Lido leads liquid staking protocols.

Key Features

  • Liquid Staking: Users stake ETH and receive stETH, which accrues staking rewards and can be used in DeFi (e.g., Curve, Balancer).
  • Multi-Chain Support: Supports Ethereum and Polygon, with past support for Solana (sunset in 2023). Layer-2 integrations include Arbitrum, Optimism, and Base.
  • Decentralized Governance: LDO token holders vote on protocol changes, node operator onboarding, and fee structures.
  • Ecosystem: Integrated with 164+ exchanges (e.g., Binance, Coinbase) and 100+ DeFi apps, including Aave and Uniswap.

LDO Token

  • Purpose: Used for governance, voting on proposals, and incentivizing node operators.
  • Supply: ~900M LDO in circulation, with a maximum supply of 1B.
  • Contract Address: On Ethereum, LDO’s contract is 0x5a98fcbea516cf06857215779fd812ca3bef1b32 (addable to MetaMask) CoinGecko CMC.

Who Are the Founders of LDO?

Lido was founded by Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish in 2020. Backed by firms like Semantic VC, ParaFi Capital, and angel investors including Stani Kulechov (Aave) and Kain Warwick (Synthetix), Lido launched with significant DeFi expertise. The Lido DAO now governs the protocol, with no centralized control.

What Makes LDO Unique?

Lido redefines staking in Web3:

  • Liquidity for Staked Assets: stETH allows users to stake without locking funds, unlike traditional staking, enabling DeFi yield farming or lending.
  • Validator Diversity: Over 200 global node operators reduce centralization risks, with Geth client usage dropping from 93% to 46% since 2022.
  • Cross-Chain Staking: Direct staking on L2s like Arbitrum and Optimism simplifies user experience with one-transaction staking.
  • Security Focus: Nine independent audits for Lido V2 ensured robustness, addressing vulnerabilities before deployment.

LDO Network Upgrades (2025)

  • Direct Staking on L2s (Q2 2025): Enabled ETH staking on Arbitrum, Base, and Optimism via Chainlink integration, reducing gas costs.
  • Oracle Rotation (May 2025): Emergency DAO vote rotated a compromised Chorus One oracle key, maintaining protocol security.
  • DVT Modules (June 2025): Introduced Distributed Validator Technology for enhanced decentralization and fault tolerance.

How Is LDO Secured?

Lido and LDO are secured through:

  • Ethereum PoS: Leverages Ethereum’s Proof-of-Stake for staked ETH security.
  • Smart Contract Audits: Regular audits by firms like Quantstamp and Sigma Prime ensure code integrity.
  • DAO Governance: ~900M LDO token holders vote on upgrades, ensuring decentralized control.
  • Multi-Signature Oracles: A 5/9 quorum protects against single-point failures, as seen in the 2025 oracle rotation.

Conclusion

Lido DAO (LDO) is a leading liquid staking protocol, enabling users to stake ETH while retaining asset liquidity. With $35B TVL, 900M circulating LDO, and integrations across 100+ DeFi apps, Lido drives Web3 staking innovation. Its decentralized governance, multi-chain support, and robust security make it a cornerstone of DeFi, despite concerns about staking dominance.