What Is Lido DAO?

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Aug 8, 2022
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4 min read
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This blog post will cover:

  • About Lido DAO (LDO)
  • Where did Lido DAO (LDO) come from?
  • What are the advantages of Lido DAO (LDO)?
  • What are the disadvantages of Lido DAO (LDO)?
  • How to buy Lido DAO (LDO)?

About Lido DAO (LDO)

Lido DAO is a liquid staking solution made for Ethereum. It lets users stake proof-of-stake (PoS) cryptocurrencies without having to lock them up meaning you can trade them freely while still staking. The short explanation of how this works — when you stake your crypto via Lido, the protocol gives a tradable token that acts as a sort of receipt for the crypto you staked. Besides the Ethereum beacon chain, Lido supports Solana, Kusama, Polygon, Polkadot and Terra Classic. 

LDO is an ERC-20 token based on the Ethereum blockchain. Its use cases are currently limited to giving users a chance to participate in governance and managing the fee features and distribution in addition to controlling the number of node operators. 

Where did Lido DAO (LDO) come from?

Lido was founded in October 2020 by Konstantin Lamashuk, Vasiliy Shapovalov and Gordon Fish. The LDO token was introduced in January 2020, after the Ethereum beacon chain was launched. 

As the roadmap of Lido suggests, the long-term goal of the project is to make liquid staking entirely trustless (with no centralized entity involved with depositing, staking or withdrawing cryptos on the protocol). The team is also obsessed with making sure Ethereum stays as decentralized as possible. 

What are the advantages of Lido DAO (LDO)?

  • Security. A decentralized platform offers more security, because all the operations are kept on the blockchain. Also, Lido provides cold hardware wallets, which store keys offline and are a harder target for hackers.
  • A well-built market share. The platform has already built a market share of 16.17% in ETH staking, which is quite fascinating. More tokens such as AAVE, Polkadot, Kusama, and Polygon are in the pipeline. This, in turn, can make Lido Finance a one-stop solution for all staking and DeFi platforms.

What are the disadvantages of Lido DAO (LDO)?

  • Potential bugs lurking in the protocol. This one appears mainly because of serious bugs that occurred in Lido before. The 1st one was discovered in October last year and put at least 20,000 ETH at risk. Luckily, it was fixed before something happened. The 2nd bug was discovered this year and affected many front ends for the Lido protocol. However, this one was fixed, too. But that doesn’t mean more bugs will not be found in future. 
  • Regulation. It’s clear that regulators aren’t fans of any crypto projects that provide a yield of any kind, particularly DeFi protocols. With the staking rewards on Ethereum expected to double after the merge, this could put Lido on their radar. 

How to buy Lido DAO (LDO)?

Fond of this project and plan to purchase LDO? Visit the SimpleSwap homepage. Follow our instructions to buy TRB:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select LDO in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Click the Exchange button.
  • Enter the Recipient's Address. LDO will be sent to this address. Be careful and make sure you use the correct address.
  • Create the exchange.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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