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Lido

  • What it is:Lido is a liquid staking protocol that lets users stake any amount of ETH for stETH tokens, earning rewards while maintaining liquidity for DeFi use.
  • Best for:DeFi power users, Small ETH holders (<32 ETH), Institutions seeking yield + liquidity
  • Pricing:Free tier available, paid plans from 10% fee on staking rewards
  • Rating:82/100Very Good
  • Expert's conclusion:Lido provides access and liquidity to DeFi users that are willing to take the risks associated with using audited smart contracts for Ethereum staking.
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Reviewed byMaxim Manylov·Web3 Engineer & Serial Founder

What Is Lido and What Does It Do?

Lido is an open source decentralized staking protocol which utilizes liquid derivatives to provide users with the option to remain liquid while staking proof of stake (POS) cryptocurrencies like Ethereum. Users' funds are pooled and then delegated to professional validators. Therefore, users do not need to purchase specific hardware or possess the technical expertise to receive POS rewards for being part of a validator.

Active
📍Decentralized (DAO)
📅Founded 2020
🏢Decentralized Autonomous Organization (DAO)
TARGET SEGMENTS
Individual crypto investorsInstitutional investorsDeFi protocolsEthereum network participants

What Are Lido's Key Business Metrics?

📊
$29.4B
TVL
📊
10% of staking rewards
Staking Fee
📊
No minimum (any amount)
Entry Requirement
📊
ERC20 (stETH)
Token Standard
📊
800+
Node Operators
📊
Leading liquid staking platform
Market Position

How Credible and Trustworthy Is Lido?

82/100
Good

Lido has emerged as one of the most prominent decentralized staking protocols currently on the market with high visibility of its activities due to its use of Decentralized Autonomous Organizations (DAO). Inherent to the decentralized design of the protocol is the opportunity to demonstrate good security practices, such as the distribution of validators and audits of smart contracts. However, the inherent risks associated with smart contracts, as well as the trade-offs related to decentralization continue to exist.

BREAKDOWN
Product Maturity85/100
Company Stability80/100
Security & Compliance80/100
User Reviews80/100
Transparency85/100
Support Quality75/100
TRUST SIGNALS
5+ years operational history (launched 2020)Leading market position in liquid staking with $29B+ TVLDecentralized governance through LDO tokenInsurance fund for validator slashing protectionMultiple validator clients and operators for network resilience

What is the history of Lido and its key milestones?

2020

Lido Protocol Launched

Lido was developed as a decentralized liquid staking solution for Ethereum and other POS blockchains.

2020

stETH Token Introduced

Lido released the stETH liquid staking token to allow users to retain their ETH in DeFi while staking.

2021

Decentralized Governance Launch

Lido DAO released the LDO governance token to allow users to participate in voting within the community to help determine the direction and decisions of the protocol.

2023

Shanghai Upgrade Integration

Successfully integrated with Ethereum's Shanghai update to allow for withdrawals of ETH from the Beacon Chain through Lido.

2024

Multi-Chain Expansion

Added support for liquid staking across multiple Layer-1 and Layer-2 blockchains in addition to Ethereum.

What Are the Key Features of Lido?

✨
Liquid Staking Tokens (stETH)
When users place their ETH into Lido, they will receive stETH tokens on a 1:1 basis to their ETH placed. stETH tokens can be traded, transferred and used in DeFi applications to earn POS rewards.
✨
No Minimum Stake Requirement
Traditional POS requirements of 32+ ETH are eliminated by using Lido to stake, thereby allowing retail investors to stake.
✨
Daily Staking Rewards
As your stETH token grows in value, you will begin to earn staking rewards on a daily basis due to the validator block rewards that your stETH tokens have accrued.
✨
Decentralized Validator Network
Your deposited assets are distributed among a diverse pool of over 800 professional validators chosen by the Lido DAO to reduce the overall level of risk.
✨
DeFi Composability
Your stETH tokens can be used to engage in yield farming, lending, liquidity provision and collateralize your deposits in excess of 100 DeFi protocols without having to unstake your stETH tokens.
✨
Insurance Fund
Lido has established a fund to pay for slashing validators; thus, Lido protects its users from losing money if their validator is slashed.
✨
DAO Governance
LDO token holders can participate in voting on different aspects of the Lido protocol, such as voting on the parameters of the protocol (i.e., how often validators are selected), voting on the fees (e.g., the number of LDO tokens that need to be locked up in order to get a particular rate of interest), etc.
✨
Non-Custodial Architecture
The Lido protocol uses smart contracts to automatically manage the deposit, withdrawl and minting of tokens and remove the need for a custodian to hold users' funds centrally and allow users to maintain full control over their funds.

What Technology Stack and Infrastructure Does Lido Use?

Infrastructure

Ethereum blockchain with distributed validator infrastructure across 800+ node operators

Technologies

SolidityEthereum smart contractsERC20 token standardWeb3

Integrations

Ethereum Beacon ChainDeFi protocols (Aave, Curve, Uniswap, etc.)Crypto wallets (MetaMask, Ledger, Trezor)Multiple layer-1 and layer-2 blockchains

Based on official Lido documentation and protocol specifications

What Are the Best Use Cases for Lido?

Retail Crypto Investors
Users can stake any amount of Ether (ETH) at anytime without having to gain the technical knowledge required to do so and can liquidate their holdings and use them in alternative investment strategies at any time and regardless of whether they have enough Ether (ETH) to create an active validator (i.e., 32 ETH).
Institutional Investors
Users can act as validators for the Ethereum network with very large amounts of Ether, but still remain liquid and redeploy their capital into alternative investments such as DeFi yield strategies.
DeFi Protocol Users
stETH (a staked version of ETH) may be used as collateral for many different DeFi products, including lending, yield farming, and providing liquidity to enhance earnings above and beyond the basic staking reward.
Long-Term Ethereum Believers
The user is supporting the integrity of the Ethereum Network and earning passive income through staking rewards on the Ether they have deposited into the system, without the need to manage or run the underlying hardware.
Liquidity Providers
Users are able to deposit stETH/ETH into exchange pool accounts and earn trading fees, while still receiving staking rewards.
NOT FORSolo Stakers with Locked Capital
No. If you have already committed your funds to a solo staking infrastructure, you will be forced to unstake and go through an unbonding period before you can utilize a service such as Lido.
NOT FORBlockchain Purists Seeking Minimal Counterparty Risk
No. When compared to running your own solo staking infrastructure, there is added risk to the operation of the smart contracts within the Lido Protocol, as well as the dependency upon the validation of validators.
NOT FORUsers Requiring Regulatory Custody
No. Due to the fact that Lido is a decentralized protocol, Lido does not offer the same levels of Institutional Custodianship and Regulatory Compliance as some jurisdictions may require.

How Much Does Lido Cost and What Plans Are Available?

Pricing information with service tiers, costs, and details
☐Service$CostℹDetails🔗Source
Liquid Staking10% fee on staking rewardsFee split between node operators and Lido DAO. No upfront costs or minimum staking amount.—
ETH Staking~3-4% net APYReceive stETH tokens pegged 1:1 to staked ETH. Rewards accrue daily.Official Lido documentation
stETH Usage$0Use stETH in DeFi protocols, lending, trading while earning staking rewards.—
Liquid Staking10% fee on staking rewards
Fee split between node operators and Lido DAO. No upfront costs or minimum staking amount.
ETH Staking~3-4% net APY
Receive stETH tokens pegged 1:1 to staked ETH. Rewards accrue daily.
Official Lido documentation
stETH Usage$0
Use stETH in DeFi protocols, lending, trading while earning staking rewards.

How Does Lido Compare to Competitors?

FeatureLidoRocket PoolAnkrCoinbase
Liquid Staking TokensYes (stETH)Yes (rETH)Yes (ankrETH)Yes (cbETH)
Minimum StakeNo minimum0.01 ETHNo minimumNo minimum
DecentralizedYes (DAO)Yes (DAO)CentralizedCentralized
Fee Structure10% of rewards15% of rewardsVariable25% of rewards
DeFi IntegrationDeep liquidityGoodModerateLimited
Node Operator DiversityHigh (800+)HighMediumLow
Security AuditsMultiple + Bug BountyMultipleMultipleProprietary
Withdrawal TimeVariable (ETH queue)VariableVariableVariable
Liquid Staking Tokens
LidoYes (stETH)
Rocket PoolYes (rETH)
AnkrYes (ankrETH)
CoinbaseYes (cbETH)
Minimum Stake
LidoNo minimum
Rocket Pool0.01 ETH
AnkrNo minimum
CoinbaseNo minimum
Decentralized
LidoYes (DAO)
Rocket PoolYes (DAO)
AnkrCentralized
CoinbaseCentralized
Fee Structure
Lido10% of rewards
Rocket Pool15% of rewards
AnkrVariable
Coinbase25% of rewards
DeFi Integration
LidoDeep liquidity
Rocket PoolGood
AnkrModerate
CoinbaseLimited
Node Operator Diversity
LidoHigh (800+)
Rocket PoolHigh
AnkrMedium
CoinbaseLow
Security Audits
LidoMultiple + Bug Bounty
Rocket PoolMultiple
AnkrMultiple
CoinbaseProprietary
Withdrawal Time
LidoVariable (ETH queue)
Rocket PoolVariable
AnkrVariable
CoinbaseVariable

How Does Lido Compare to Competitors?

vs Rocket Pool

Currently, Lido has the largest market share of all of the entities utilizing this type of protocol at approximately 30% of the total amount of ETH currently being staked, while Rocket Pool is the next largest entity at approximately 10%. Although Rocket Pool may offer greater appeal to individuals looking to support decentralized networks, as well as to individuals who desire to support permissionless node operators, Rocket Pool offers less DeFi composability and liquidity than Lido.

For maximum DeFi usability/liquidity – Lido; For maximum decentralization – Rocket Pool.

vs Coinbase Staking

Compared to Coinbase's centralization model, Lido is a completely decentralized/non-custodial staking protocol. Therefore, Lido allows users to create stETH for use in DeFi, while Coinbase will lock up the user's assets. Additionally, Lido is more secure in regards to protecting the overall Lido protocol then Coinbase, but Coinbase is far easier to get into for fiat on ramps.

For DeFi power users – Lido; For fiat-first beginners – Coinbase.

vs Ankr

Lido holds the top spot in the Ethereum market share, with much greater stETH liquidity than Ankr, which has the advantage of offering more chain support but far less TVL and liquidity than Lido. In addition to size, Lido has a well-developed DAO while Ankr operates through a centralized model.

Lido is the largest player in the space of Ethereum staking; Ankr is better suited for multi-chain exposure.

vs StakeWise

Both products are permissionless, however, Lido is over 10X larger in terms of TVL and its stETH has significantly more liquidity than sETH2. StakeWise offers a unique solo staking rehypothecation option that is not available through Lido.

For scale/liquidity – Lido; For solo staking enthusiasts – StakeWise.

What are the strengths and limitations of Lido?

Pros

  • Lido has the deepest stETH liquidity — Lido's stETH is the most widely integrated liquid staking token in DeFi.
  • There is no minimum stake required — users can stake any ETH amount without having to meet the 32 ETH requirements.
  • Support for multiple chains — ETH, SOL, MATIC, etc. all supported by one platform.
  • Governance is carried out through a decentralized community — LDO DAO makes protocol decisions.
  • Multiple audits and an active bug bounty program — battle-tested security.
  • Instant liquidity — users can utilize their stTokens immediately when received in DeFi.
  • Rewards are distributed daily — rewards compound automatically.

Cons

  • A 10% fee is charged on rewards — a rate higher than the consensus APY (5-8%) a solo staker would obtain.
  • Risk associated with smart contracts — the success of this product relies on the security of its smart contract.
  • Risk of a depeg of stETH — stETH is sold at a discount during periods of market stress.
  • Concerns about centralization — Lido dominates approximately 30% of the ETH staking market.
  • Delayed withdrawals — ETH withdrawals will be delayed due to queue times.
  • Too much to handle for newbies — users need to know how to operate a wallet and work with DeFi protocols prior to using Lido
  • Counterparty risk — Lido's performance is dependent upon the performance of the node operators

Who Is Lido Best For?

Best For

  • DeFi power users — Deep integration into DeFi — Lido's stETH has deep integration into lending, DEXs, and yield aggregators
  • Small ETH holders (<32 ETH) — Removes the minimum stake required — removes the solo staking hurdle
  • Institutions seeking yield + liquidity — Users are able to keep their DeFi composability while generating staking rewards
  • Multi-chain stakers — One interface for ETH, SOL, MATIC staking
  • Passive yield farmers — Daily auto-compounding of rewards with liquid tokens

Not Suitable For

  • Solo staking purists — We prefer to have total control over our nodes with 32 ETH nodes. Instead we use Rocket Pool mini-pools.
  • Centralization-averse users — There is a significant amount of risk due to the size of Lido's share of ETH (around ~30%). Consider using Rocket Pool instead.
  • Fiat on-ramp beginners — To stake through Lido, users must understand crypto wallets and DeFi platforms. Use Coinbase staking.
  • Immediate ETH withdrawal needs — Users may experience validator queue times when using Lido. Using centralized exchanges would be a better option.

Are There Usage Limits or Geographic Restrictions for Lido?

Staking Fee
10% of staking rewards (node operators + DAO)
Minimum Stake
No minimum (any ETH amount)
Supported Chains
Ethereum, Solana, Polygon
Withdrawal Process
Burn stTokens → queue for ETH (variable time)
stToken Peg
Market-driven, may trade at discount
Node Operator Risk
Slashing/penalties distributed to stakers
Geographic Availability
Global (self-custodial wallet access)
KYC Requirements
None (non-custodial protocol)

Is Lido Secure and Compliant?

Multiple Smart Contract AuditsProtocol protected and verified through extensive third-party audits by Sigma Prime, MixBytes, and Trail of Bits
Active Bug Bounty ProgramContinuous security testing through public bug bounty with up to $1M rewards
Non-Custodial DesignNo one can access or control stakers' funds — users retain private keys
Decentralized Node Operators800+ node operators across 30+ countries reduce single point of failure risk
Open Source CodeFull protocol transparency via GitHub public repository
Decentralized GovernanceLDO token holders vote on protocol upgrades and parameters
Insurance FundDedicated fund to cover potential slashing events and protect stakers

What Customer Support Options Does Lido Offer?

Channels
Community support available 24/7Governance and technical discussionsSelf-service guides at help.lido.ficontact@lido.fi for official inquiries
Hours
Community support 24/7 via Discord and forums
Response Time
Community-driven; typically hours to days depending on forum activity
Support Limitations
•No live chat, phone, or dedicated support agents
•Relies primarily on community and self-service resources
•No guaranteed response times for individual users

What APIs and Integrations Does Lido Support?

API Type
Smart contract interactions via Ethereum Web3 RPC, Ethers.js/Viem compatible
Authentication
Wallet signature-based (MetaMask, WalletConnect); no API keys required
Webhooks
Not natively supported; use The Graph or event listeners for on-chain notifications
SDKs
ethers.js, web3.js, viem; community wrappers for Python/JavaScript
Documentation
Comprehensive at docs.lido.fi; includes contract ABIs, deployment addresses
Sandbox
Test on Sepolia/Holesky testnets with testnet stETH
SLA
Protocol uptime tied to Ethereum network; audited smart contracts
Rate Limits
Ethereum network gas limits apply; no protocol-specific limits
Use Cases
Stake/unstake ETH, transfer stETH, integrate stETH into DeFi protocols, query staking rewards

What Are Common Questions About Lido?

Users send ETH to Lido's smart contract and receive an equal number of stETH tokens; stETH represents both the users' staked ETH and the staking rewards the users' ETH has generated to-date; because stETH is liquid and users do not have to take their assets off-line, stETH can be utilized in DeFi protocols like Curve, Aave, and Maker; users also earn staking rewards that grow their stETH holdings over time.

stETH is Lido's liquid staking token and represents users' staked ETH; while earning staking rewards, users can trade, lend or utilize stETH in DeFi protocols such as Curve, Aave, and Maker; users' stETH balances will increase as users earn staking rewards.

Lido takes a 10% fee on staking rewards. The 10% fee is split equally between Lido's network of node operators and the Lido DAO treasury; the remaining 90% of staking rewards are distributed to stETH holders.

Unlike the requirement of at least 32 ETH needed for solo staking, there is no minimum ETH required for users to start staking through Lido pools as they aggregate deposits from all users and delegate those deposits to validators.

The use of audited smart contracts and delegating to highly vetted, reliable node operators with histories of operation provide a high level of security to Lido’s system. In addition to being audited by leading auditing firms, Lido also operates an active bug bounty program which adds additional security to the system.

Liquid staking tokens for Ethereum (stETH) and native staking tokens for Polygon and Solana support are available through Lido.

While stETH is fully liquid allowing users to sell their holdings at any time via secondary markets; for native ETH withdrawals, users will need to utilize Lido's withdrawal portal and go through the official unstaking queue and wait until Ethereum's validator exit times have passed.

Because Lido is a decentralized platform, it does not store or hold users' private keys. Users retain total control over their assets; however, stETH allows for liquidity exchanges that cannot be matched by other forms of staking, and provides LDO governance, providing users with governance rights within the Lido protocol.

Is Lido Worth It?

Lido’s liquid staking space domination in the Ethereum ecosystem is unparalleled and unmatched in terms of liquidity and TVL exceeding $29 billion; while the protocol has audited contracts, DAO governance and DeFi composability that allow it to function as critical infrastructure, the 10% fee charged and potential for centralization must be considered.

Recommended For

  • Users who own Ethereum but do not have the 32 ETH required to stake to receive rewards or the hardware necessary to do so.
  • DeFi users looking to maximize capital efficiency when using lending and/or yield protocols.
  • Institutional users requiring audited and battle-tested liquid staking infrastructure to meet their institutional requirements.
  • Stakers operating in multiple ecosystems such as Ethereum, Solana, and Polygon.

!
Use With Caution

  • Users who are unwilling to accept the degree of risk associated with smart contracts even though the smart contract has been audited multiple times.
  • Stakers that are risk averse and want total control over their own staking operations; i.e., solo staking.
  • Maximalists that are concerned with Lido's validator dominance (>30% of all Ethereum staked)
  • Retail users that do not understand DeFi composability and therefore cannot appreciate the additional risk created when using composability in DeFi.

Not Recommended For

  • Users that require 100% validator decentralization; i.e., they prefer to use solo staking.
  • Stakers that are cost sensitive and would like to avoid the 10% fee charged by the protocol.
  • Non-technical users that do not feel comfortable with having to manage their own wallet.
Expert's Conclusion

Lido provides access and liquidity to DeFi users that are willing to take the risks associated with using audited smart contracts for Ethereum staking.

Best For
Users who own Ethereum but do not have the 32 ETH required to stake to receive rewards or the hardware necessary to do so.DeFi users looking to maximize capital efficiency when using lending and/or yield protocols.Institutional users requiring audited and battle-tested liquid staking infrastructure to meet their institutional requirements.

What do expert reviews and research say about Lido?

Key Findings

Lido has the largest liquid staking market in DeFi with stETH providing a DeFi primitive on each of the major blockchains. Any amount of ETH that a user wants to contribute to the pool is collected, ETH is delegated to over 800 audited node operators and a 10% fee is charged on staking rewards. Lido achieves decentralized governance through the use of the LDO token to help ensure that the protocol evolves in a decentralized manner. The institutional grade security is provided by the $29B+ TVL (total value locked).

Data Quality

Excellent - comprehensive technical documentation from official site plus detailed analyses from DefiLlama, CoinLedger, and Gemini covering protocol mechanics, governance, and adoption metrics.

Risk Factors

!
Smart contract vulnerabilities can still exist even after multiple audits.
!
The validators could become centralized as Lido currently owns >30% of all Ethereum staked.
!
A 10% fee is charged by the protocol so the net yield from staking will be less than if you were to stake your ETH individually.
!
When there is high unstaking volume, withdrawal queues will likely experience delays.
!
Withdrawal performance from the protocol will be directly impacted by the performance of the Ethereum network.
Last updated: January 2026

What Additional Information Is Available for Lido?

Multi-Chain Support

Lido enables support of Ethereum staking and also supports Solana and Polygon. For each blockchain Lido utilizes the native liquid staking token enabling DeFi composability unique to the individual ecosystems.

Lido DAO Governance

Voting through the LDO token determines the protocol upgrades, node operator selection, fee structures, and treasury allocations. To-date the LDO Treasury has allocated over $100m in funding for security audits, development, and ecosystem grants.

Security Audits

Audits were conducted by major firms including Sigma Prime, MixBytes, and Trail of Bits. Bug bounty is available for stETH with a maximum reward of $1m. Although stETH has massive amounts of TVL it has never been slashed.

DeFi Integration

stETH is used as primary collateral on multiple platforms which provide billions of dollars in secondary yield such as Aave, Maker, Curve, and Yearn. The most liquid of all liquid staking tokens provides for quick and efficient trading.

Validator Diversity

There are approximately 800 node operators operating globally across 30+ countries. Node operator performance is evaluated by the stETH DAO to avoid any single point of failure. Node operators also have a "skin-in-the-game" (collateral) in the form of staked stETH.

What Are the Best Alternatives to Lido?

  • •
    Rocket Pool: Decentralized Ethereum liquid staking using the rETH token. While it utilizes more decentralized node operators, it has lower liquidity than Lido. This is best for those who prefer permissionless validators to DeFi composability. (rocketpool.net)
  • •
    Coinbase Wrapped Staked ETH (cbETH): Centralized exchange staking using the cbETH token. More suitable for new users due to the ease of the user interface; however, the inherent risks exist with being custodial, less composability exists within DeFi. Fees are 25% and are very simple to use. This is suitable for users who wish to be loyal to their respective exchanges. (coinbase.com)
  • •
    Binance ETH Staking: A centralized staking model, provided by one of the world’s biggest exchanges. Extremely liquid for BETH, but the user loses complete custody of their assets and is exposed to regulatory risks. The UI is very basic for users that do not wish to have custody of their assets themselves. Ideal for users of the Binance Ecosystem. (binance.com)
  • •
    StakeWise: Staking of liquid Ethereum through the Vault System. More options for customized staking strategies and completely transparent. Less scalable than Lido and only works with a select group of operators. Ideal for Strategic Stakers seeking options. (stakewise.io)
  • •
    Solo Staking: Set up an Ethereum Validator for yourself, which is a very technically complex endeavor. Requires at least 32 ETH and you get complete control over how the validator is run and complete decentralization. However, it is a huge undertaking to become a validator. Absolutely free with the best possible security. Ideal for users that can afford both the time and money to be able to set up and operate validators on their own behalf. (ethereum.org)

What Are Lido's Staking Yield?

~3-4%
Current APY
~3.5% APY
Base Staking Reward
Up to 5-6% with integrations
DeFi Yield Strategies
Daily (rebasing)
Reward Frequency

What Are Lido's Staking Tvl?

$29.4B
TVL
~30% of staked ETH
Market Share
~9.5M ETH
Staked ETH
300,000+
Unique Stakers

What Is Lido's Staking Fees?

Staking Fee
10% of rewards
Withdrawal Fee
None
Performance Fee
0%
Minimum Stake
No minimum

What Is Lido's Staking Lst Info?

Token Symbol
stETH
Rebasing
Yes (daily balance update)
DeFi Integrations
100+ protocols (Curve, Aave, Maker, Uniswap)
Exchange Listings
Major CEX/DEX (Bybit, OKX, Coinbase, Binance, Uniswap)

What Are Lido's Staking Decentralization?

800+ entities
Node Operators
30+ countries
Geographic Distribution
37
Curated Module Operators
500+ solo stakers
Community Stakers
Multi-client support
Client Diversity

What Is Lido's Staking Security Status?

Smart Contract AuditsMultiple audits by Sigma Prime, MixBytes, Trail of Bits
Bug Bounty ProgramUp to $1M max reward
Insurance CoverageDedicated slashing insurance fund
Slashing ProtectionDistributed validator technology
Open Source CodeFully open sourced on GitHub

What Staking Supported Networks Does Lido Support?

EthereumPolygonSolana

Multi-chain liquid staking across major PoS networks

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