What is Lido DAO?


Lido is a secure liquid staking protocol that supports several layer-1 and layer-2 cryptos that use the Proof of Stake (POS) consensus mechanism. It addresses a fundamental problem plaguing the current POS staking system. 

One of the critical challenges of the staking ecosystem is illiquidity. Once a user stakes their assets in a Defi protocol, they cannot reaccess their tokens till the staking period is over. This hampers users to access platforms which have better returns. Lido DAO provides a solution to this problem.

Lido DAO is a liquid staking protocol which works on the Ethereum blockchain. It enables non-custodial staking which means users can stake their locked Ethereum into other protocols. The staking on Ethereum’s beacon chain locks the assets. Lido DAO allows these assets to be liquified. This gives the chance for users to gain more returns. Lido DAO is also known to have encouraged more retail participation because of its unique features. 

What is Lido DAO token (LDO)?

Lido works on a Decentralised Autonomous Organisation(DAO) structure. Its operations are controlled by a non-hierarchical member community. The Lido token(LDO) is a governance token used within the Lido DAO for voting purposes. It allows the community members to decide the future by voting on key issues like the development of the DAO, future initiatives, and proposals to make a change to the DAO.

Read more: What is DAO

Some of the key members of the Lido DAO are Semantic Ventures, KR1 and P2P capital. These are notable names in the crypto space.

Lido Tokenomics

As of Jan 10th 2023, the Lido DAO token is trading at $ 2.05. The token has a maximum supply of 1 Billion. It has a total market capitalisation of close to $ 2 billion. Its 24-hour volume is $187,195,217.

LDO token allocation is done amongst various groups. The distribution of tokens is as mentioned below.

LDO token distribution

How Does Lido DAO Platform Work?

How Does Lido DAO Platform Work?

The workings of the platform can be explained in a simple three-step process. 

Staking: Users can stake any amount of ETH they wish to on the Lido Platform. Lido receives the staked ETH.

Minting: In exchange for the ETH stakes, users can avail the derivate token of Lido DAO known as sETH (liquid asset).

Yield using sETH:  The sETH availed by the users can be used for staking across multiple Defi protocols, thereby opening up more investment opportunities.

As opposed to conventional staking which requires ETH in the multiples of 32, Lido DAO allows staking of any quantity of ETH the user wishes to stake.

Key Features of Lido DAO

Lido Staking platform

It allows users to connect their crypto wallet and stake any amount of ETH. Once the ETH is staked, sETH is received in a 1:1 ratio. A 10% transaction cost is deducted from the returns obtained by the users on staking their sETH.

Maker DAO

Maker DAO allows users to obtain loans by using sETH as collateral.

Curve DAO

sETH can be used on Curve DAO as well. Curve DAO enables users to purchase stablecoins.

Pros and Cons of Lido

Offers a unique flexibility option in StakingThe 10% fee on the Lido platform is high
Fully DecentralisedHighly dependent on Ethereum


Unique staking option

The unique feature to provide liquidity for ETH tokens is an attractive proposition. This feature is seen to garner a lot of attention from retail investors who do not want to lock their funds for long periods.

Fully Decentralised

The best part about a DAO is the ability to not have a single point of failure. Each member of a DAO has a voice and a voting right. This makes the entire system democratic.


High Fee

A 10% fee on the returns obtained by investors is clearly on the higher side.


Lido DAO and its tokens are highly dependent on the Ethereum blockchain. Any threats that the Ethereum blockchain faces can have a direct impact on the workings of the DAO and the value of the governance token.

Is Lido a good investment?

As of 10th Jan 2023, Lido DAO is experiencing a bull run. Over the past month, the coin has appreciated by 98.05%.  

LDO token performance at a glance

1 month98.05% 
3 months63.31%
6 months63.31%
Year to date112.57%

Looking at a broader perspective, Lido DAO solves a critical problem of illiquidity in the staking ecosystem. From this perspective, it is a valuable token to own. However, each investor must do their research before deciding to buy or sell. This article by itself should not be treated as investment advice of any shape or form.

How to Buy Lido Dao Tokens on ZebPay India?

You can buy Lido DAO tokens (LDO) by logging onto ZebPay and visiting the Quick trade panel. 

Step 1: Deposit Fiat currency into your ZebPay wallet

Step 2: Open the Quick trade panel and search for the LDO token

Step 3: Enter the amount of Fiat you would like to invest

Step 4: Check the order details and place the order

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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