Understand the Lido DeFi protocol and its governance token LIDO
05 Feb, 2023
Lido DAO statistics
LIDO was created to be the utility token of Lido DAO, a liquidity protocol originally based on the Ethereum network. LIDO holders can perform some operations within the protocol, such as staking (en...
Discover LIDO, the Lido DAO token
What is DAO?
DAO stands for Decentralized Autonomous Organization. DAOs are platforms managed and developed by their own user community. DAOs represent a growing movement of decentralized finance (DeFi), have several functions and allow for different activities, such as making loans, providing token exchange ecosystems, buying and selling NFTs, among others.
What does staking mean?
Staking means buying a certain amount of tokens to provide liquidity to the platforms and protocols to which they belong. The more tokens a network or ecosystem has, the greater the number of validating agents on that network and, therefore, the more secure they are. Since validators are rewarded with a portion of transactions, staking has become an attractive activity in decentralized finance.
How does the liquidity of the LIDO DAO token work?
The provision of liquidity takes place within the Lido platform. Users deposit ether (ETH), Kusama (KSM) or DOT in the DAO and, in return, they receive a derivative asset (stETH in the case of ether). These derivative tokens are priced at par with the original cryptocurrencies, and everyone who has their assets staked on Lido's DAO is rewarded for providing liquidity to the protocol.
How to buy and sell the token LIDO (LDO)?
LIDO can be purchased on the LIDO platform or on exchanges such as Bitso. Visit our website and check out LIDO and other cryptoassets that you can add to your wallet. Our app is easy to use and you can also count on our team of experts for support. Come to Bitso!