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Investing In Lido DAO (LDO) – Everything You Need to Know

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The Lido DAO (Decentralized Autonomous Organization) is responsible for the governance of the Lido liquidity staking protocol. Lido provides simplified staking solutions to the crypto community. The network is a popular option that currently hosts +$8,561,923,597 in staked assets. Today, Lido serves a vital role in helping new users get more involved in the decentralized economy.

What Problems Does Lido DAO Attempt to Fix?

The Lido DAO serves multiple roles. The project was designed to help prevent any future governance issues related to Lido.   DAOs replace personnel with smart contracts. These systems enable the community to put forth proposals to a vote. The proposals that get approved get implemented moving forward.

Lido - Twitter

Lido – Twitter

DAOs are more popular than ever in the DeFi market because they help to keep communities together. They provide more transparency and help prevent centralization. They also give users more control over token value. For example, it’s common for DAOs to vote to conduct token burns or buybacks to create more value.

Financial Barriers

Another major issue that Lido DAO helps to resolve is financial barriers to crypto adoption. There are lots of people who want to stake the new Ethereum 2.0 chain. However, you need to stake 32 ETH to qualify for staking privileges. For most people, this is too much.

The Lido project recognized this fact. It was launched only weeks after the Ethereum 2.0 Beacon Chain went live. The protocol provides a viable alternative that enables you to secure returns staking your favorite PoS blockchains.  There are no minimum staking amounts on Lido which is a huge draw for many users.

Technical Expertise

Lido eliminates the technical requirements for staking. It streamlines the process so that anyone can enjoy the benefits. You can earn staking rewards without maintaining any form of staking infrastructure. This approach saves you money and time.

Locked Funds

One of the main issues that LIDO solves is locked funds. On most staking protocols, you must lock your funds into a network smart contract for a predetermined time. At the end of the staking period, you receive rewards. The problem with this approach is that you can’t access your funds during the staking period without losing your rewards.

Lido DAO - Homepage

Lido DAO – Homepage

LIido enables users to stake their crypto without a lockup period in a non-custodial manner. Users can use assets they have staked to leverage other ROI opportunities including P2P lending and yield farming opportunities. In this way, Lido seeks to revolutionize the staking sector.

Benefits of Lido DAO

The Lido DAO brings a lot of benefits to the table. For one, it gives this community a voice. DAOs have proven to be effective in helping a project remain decentralized. Additionally, the protocol is secure. It’s open-source and has been audited by third-party groups. These advantages enable the platform to provide trustless liquid staking services to the market.

Flexibility

Another major advantage of Lido DAO is its flexibility. Lido launched only servicing Ethereum. However, the protocol now offers services for Ethereum 2.0, Terra, Solana, Polygon, and Kusama. This flexibility has helped drive LDO token value up as there is more usability.

Passive Income

Passive income is the key to financial freedom. There are multiple ways that LDO token holders can secure passive returns. They can stake, farm, lend, and participate in governance tasks to secure rewards. The network also has a great referral program that enables you to earn LDO for sharing Lido.

How Does Lido DAO Work?

Lido DAO is a decentralized protocol that focuses on streamlining staking services for PoS networks. The protocol enables anyone to earn yield by delegating tokens to a trusted and preferred validator. The validator receives rewards for maintaining the network’s validity. These rewards are shared between the validator and their delegators based on their level of contribution.

Lido DAO - How Lido Works

Lido DAO – How Lido Works

The core aspect of Lido is the ability to use your staked assets to gain compounding yields. You can accomplish this task using the network’s many DeFi options. Staking on the network is an easy feature for new users to leverage. Staking is ideal because you know exactly what your returns will be and when they will be paid.

You can also use the network’s yield farming services, Yield farming is like staking except the APY varies. Farming pools have no lockup periods which has helped them gain popularity. Another great feature is the P2P lending options. DeFi lending is a popular option that enables you to secure interest on loans.

Token

At the core of the Lido network is the LDO utility and governance token. This token is a versatile digital asset that can help you to express your ideas to the community and secure returns. This ERC-20 compatible token enjoys full interoperability within the Ethereum ecosystem.

LDO hodlers earn daily returns when they stake their token on the network. LDO has a capped supply of 1,000,000,000 tokens over the span of the project. There are currently 363,602,996 LDO in circulation.

Governance

The Lido DAO uses a weighted voting system to help determine the developments of the project in the future. This system gives large token holders more weight in their voting power. This structure is common in the DeFi sector. It has proven effective as those with the most invested have the most to lose.

History

Lido officially launched in December 2020 to help support the growing number of PoS networks entering the market. Many people see PoS networks as superior to Proof-of-Work (PoW) networks because they require less electricity. They are also more democratic and scalable. Lido was founded by Vasiliy Shapovalov.

How to Buy Lido DAO (LDO)

Currently, Lido DAO (LDO) is available for purchase on the following exchanges:

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Lido DAO (LDO). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

Lido DAO – Positioning is Everything

The Lido DAO is positioned perfectly to serve a crucial role in the growing PoS community. DAOs are now a standard feature in most networks in the DeFi sector. These groups continue to see their voting powers increase as more networks enter under DAO controls. Projects like the Lido DAO demonstrate the power of decentralization and community governance when integrated with DeFi ROI services.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com