Lido Dao (LDO) Price

Info

Contract Address

ETH 0x5a98fcbea516cf06857215779fd812ca3bef1b32

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About Lido Dao (LDO)

Lido is the leading liquid staking solution - providing a simple way to get rewards on your digital tokens. By staking with Lido your tokens remain liquid and can be used across a range of DeFi applications, getting extra rewards.

Traditionally, staking in Proof-of-Stake (PoS) protocol based projects has been about locking one’s tokens in one project for a long time and expecting a fixed, predetermined staking reward in return. While it guarantees the return on staked tokens much like a bond, it also limits the opportunities of generating higher returns on those tokens from the DeFi ecosystem. If you’ve staked all of your crypto holdings, you can’t invest or trade in more profitable crypto pairs on exchanges.

Solo staking is great, but it comes with some disadvantages. Setting up a validator node requires a pristine technical understanding, brings with it a minimum deposit of 32 ETH in Ethereum case, slashing and offline penalties can get very severe if the staking is managed improperly and finally the staked amount is locked up for a significant period.

Solo staking is similar to other option SaaS staking in that you are having your own validator keys. Nevertheless, with SaaS you must trust a third-party (usually centralised), which may act maliciously, attacked or simply regulated. Going back to the Ethereum example, there remains a requirement for a minimum amount of 32 ETH staked.

Alternatively, it may be possible to produce staking through centralised exchanges. Needless to say, crypto tokens and CeFi are not suited well together from the fundamental standpoint. It is also worth mentioning the economic aspect - by staking within some centralised entities, the user does not receive a corresponding token in return and, thus, loses the opportunity to perform any subsequent activity within DeFi or the same centralised entity, where tokens were staked.

Yes, APR, when staking on centralised exchanges might be higher, but with a significant amount aggregated within the centralised entity comes a huge potential influence to the ecosystem that was fundamentally designed decentralised.