What is Lido Finance?
Lido Finance is the leading liquid staking protocol on Ethereum.
Background
Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish founded Lido in 2021.
How Does It Work
Lido Finance issues liquid derivatives of assets such as stETH tokens for Ethereum staked with a validator. These liquid derivatives continue to earn the staking reward without requiring users to lock up assets in a staking contract. Liquid-staked assets can also be used across other DeFi protocols that regard them as similar to the underlying staked asset. Users also bypass the need to run a validator node or post the total collateral, such as 32 ETH for Ethereum.
Key Takeaways
- Protocol provides users with liquid derivatives of staked crypto assets.
- Biggest LSD platform as of 2023.
- Staked-ETH is Lido’s largest liquid staking product.