What is Lido?Lido is the name of a family of open-source peer-to-system software tools deployed and functioning on the Ethereum, Solana, and Polygon blockchain networks.
How does Lido work?While each network works differently, generally, the Lido protocols batch user tokens to stake with validators and route the staking packages to network staking contracts.
Why Lido?1. Lido protocols give the user liquidity.2. Participate in DeFi.3. Lido protocols are governed by the Lido DAO.4. Uses time-proven node operator.
Lido protocols give the user liquidity The stTokens are on the execution layer, so they can be transferred. Users receive staking rewards from validation activities but can sell stTokens anytime they want to exit their staking position.
Participate in DeFiUsers can use stTokens as building blocks in DeFi protocols at the same time as getting staking rewards from validating activities.
Lido protocols are governed by the Lido DAO This means there is no central point for making decisions, and there is no one person who has access, control, or decision power to define what to do with users’ tokens.
Uses time-proven node operators. Lido DAO works with experienced node operators, which decreases the likelihood of technical mistakes that could lead to slashing or penalties.