Lido DAO | Trading Non Stop

What is LDO?

Lido DAO (LDO) is a decentralized organization that offers liquid staking services. It lets users stake cryptocurrencies like Ethereum while still keeping access to their funds through special tokens they can trade or use elsewhere.

Leader in Liquid Staking – Users can stake ETH to earn rewards and receive stETH, a token that stays liquid and can be used in other decentralized finance (DeFi) activities.
Community-Driven Governance – LDO token holders vote on important decisions like upgrades, selecting node operators, and managing funds.
Innovative Dual Governance – Power is shared between LDO holders and stETH stakers to avoid any single group from having too much control.

Deep Dive

1. What Lido Does and Why It Matters

Lido addresses a common issue in proof-of-stake networks: when you stake your ETH, it’s usually locked up and can’t be used until the staking period ends. Lido solves this by giving users stETH tokens in return for staking ETH. These tokens represent their staked assets plus rewards and can be traded or used in other DeFi platforms. This way, users don’t have to choose between earning staking rewards and keeping their funds accessible (Lido Docs).

2. How Lido is Governed

Lido DAO is run by its community through decentralized governance. LDO token holders have the power to propose and vote on key issues such as:

Protocol Settings: Deciding fees, choosing node operators, and managing the DAO’s treasury.
Security and Upgrades: Overseeing audits, handling emergencies, and implementing features like Dual Governance, which gives stETH holders a say in blocking controversial proposals.
Use of Funds: Allocating resources for development, insurance, and incentives to keep liquidity flowing.

3. What Makes Lido Unique

Lido’s Dual Governance system, introduced in June 2025, adds extra protection against hostile takeovers. If just 1% of stETH holders oppose a proposal, its implementation is paused. If opposition reaches 10%, a “rage quit” mechanism stops all governance activities until dissenting members leave. This system balances control between LDO token holders (who manage the protocol) and stETH holders (who own the staked assets), making Lido’s governance model one of a kind in liquid staking (Lido Governance Update).

Conclusion

Lido DAO is a key player in decentralized finance, making staking more accessible by combining liquidity with community governance. Its unique approach helps it grow while keeping control distributed among users. The big question is: how will Lido’s evolving governance model support its growth while staying decentralized?