Lido DAO price
in USD
About Lido DAO
Disclosures
Lido DAO risk
This material is for informational purposes only and is not exhaustive of all risks associated with trading Lido DAO. All crypto assets are risky, there are general risks in investing in Lido DAO. These include volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk & cyber security risk. This is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold crypto assets; or (iii) financial, accounting, legal or tax advice. Profits may be subject to capital gains tax. You should carefully consider whether trading or holding crypto assets is suitable for you in light of your financial situation. Please review the Risk Summary for additional information.
Investment Risk
The performance of most crypto assets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in crypto assets.
Lack of Protections
Crypto assets are largely unregulated and neither the Financial Services Compensation Scheme (FSCS) nor the Financial Ombudsman Service (FOS) will protect you in the event something goes wrong with your crypto asset investments.
Liquidity Risk
There is no guarantee that investments in crypto assets can be easily sold at any given time.
Complexity
Investments in crypto assets can be complex, making it difficult to understand the risks associated with the investment. You should do your own research before investing. If something sounds too good to be true, it probably is.
Concentration Risk
Don't put all your eggs in one basket. Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on anyone to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
Five questions to ask yourself
- Am I comfortable with the level of risk? Can I afford to lose my money?
- Do I understand the investment and could I get my money out easily?
- Are my investments regulated?
- Am I protected if the investment provider or my adviser goes out of business?
- Should I get financial advice?
DeFi tokens
Decentralised Finance ("DeFi") tokens are crypto assets built on decentralised blockchain technology for financial applications or protocols. Risks linked to DeFi tokens include:
Enterprise Risk
Interactions between multiple DeFi protocols create a situation where a vulnerability or breakdown in one protocol can trigger a cascading effect, affecting other interconnected platforms.
Technology Risk
DeFi protocols frequently depend on external data sources or oracles, and any tampering or inaccuracies in these data streams can result in a lack of trust and reliability in the protocols.
Regulatory Risk
Governments and regulatory bodies around the world can introduce new regulations or ban certain aspects of the cryptocurrency market, affecting its legality and viability, which could affect token liquidity and/or value.
Legal Risk
Certain tokens may be used for operating a decentralised exchange platform which may contain additional risks:
- The platform may allow users to participate who have not been vetted or verified and therefore expose the possibility that users are interacting with sanctioned entities.
- The platform may be accessible in jurisdictions where some or all the exchange activity should be regulated. If a local regulator deemed the platform activity to be in breach of local regulation, they may request cessation or termination of the service which could affect token liquidity and/or value.
Market Risk
Given their novelty, the evolving technology involved and lack traditional asset structure, valuing crypto assets can be very difficult or impossible. This means valuations are determined by demand that is at risk of manipulation in various ways.
Lido DAO’s price performance
Lido DAO on socials
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Lido DAO FAQ
Lido is a decentralized protocol offering liquid staking services for various Proof of Stake (PoS) blockchains. When users stake assets with Lido, they receive tokenized equivalents of their staked tokens on a 1:1 basis. These tokens remain liquid, allowing users to use them across various platforms.
Lido charges a 10 percent fee on staking rewards. Despite being seen by some as a drawback, this rate aligns closely with industry standards, keeping Lido competitive.
Easily buy LDO tokens on the OKX cryptocurrency platform. OKX’s spot trading terminal includes the LDO/USDT trading pair.
You can also swap your existing cryptocurrencies, including XRP (XRP), Cardano (ADA), Solana (SOL), and Chainlink (LINK), for LDO with zero fees and no price slippage by using OKX Convert.
Dive deeper into Lido DAO
One of the most significant events in the cryptocurrency industry was Ethereum's mainnet transition to Proof of Stake (PoS). This transition raised concerns due to the 32 ETH requirement to become an Ethereum validator for staking. Lido (LDO) emerged as a liquid staking solution in the decentralized finance (DeFi) space, lowering this high entrance barrier and enabling anyone to stake ETH and earn rewards.
What is Lido
Lido is a decentralized protocol offering liquid staking services for several PoS blockchains, including Ethereum (ETH), Solana (SOL), Polygon (MATIC), and Polkadot (DOT). Liquid staking addresses a critical issue in PoS staking, namely illiquidity, which occurs when assets are staked and locked, becoming inaccessible for a specific period. Lido overcomes this challenge by offering users liquidity and non-custodial staking solutions, allowing them to retain flexibility and access to their staked assets. By May 2023, Lido's total value locked (TVL) exceeded $11.7 billion, positioning it as the leading liquid staking platform.
The Lido community governs the protocol through the LDO token, empowering holders to vote on improvements, upgrades, and network parameters. This decentralized autonomous organization (DAO) also oversees insurance and development funds.
The Lido team
Lido was launched shortly after the Ethereuem merge in December 2020 by Lido DAO. Lido is governed by the community members and holders of the LDO token. Members of Lido DAO have a proven track record in the decentralized finance (DeFi) space. Notable contributors include Semantic VC, P2P Capital, ParaFi Capital, BitScale, Julien Bouteloup, and AAVE.
How does Lido work
When users stake assets in Lido, they receive tokenized representations (like stETH or stDOT) in a 1:1 ratio. These tokenized assets remain liquid and accessible, allowing users to use them on other DeFi platforms, such as Maker DAO and Curve DAO. This enhanced liquidity expands users' opportunities and financial options.
LDO tokenomics
LDO is an ERC-20 token with a capped supply of 1 billion. LDO tokens are instrumental in Lido's governance; the more LDO tokens staked, the more voting power holders have in decision-making processes ranging from protocol upgrades to resource allocation.
LDO distribution
Upon launch, the 1 billion LDO tokens were distributed as follows:
- 36.32 percent to the Lido DAO treasury
- 22.18 percent to investors
- 20 percent to initial Lido developers
- 15 percent reserved for founders and future employees
- 6.5 percent to validators and signature holders
Disclaimer
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