Lido DAO
Crypto Overview
Overview
Lido DAO is a liquid staking protocol that enables users to stake their Ethereum and other tokens while maintaining liquidity of their assets. When users stake ETH through Lido, they receive stETH tokens that represent their staked ETH plus staking rewards. These stETH tokens can be used in DeFi protocols while the underlying ETH continues earning staking rewards.
Intended Utility
The LDO token serves as the governance token for the Lido DAO, allowing holders to vote on protocol parameters, upgrades, and treasury management. Token holders can participate in decision-making regarding validator selection, fee structures, and protocol improvements.
Actual Utility
Lido has become the largest liquid staking protocol in the cryptocurrency ecosystem, with over $20 billion in total value locked (TVL) as of 2024. The protocol controls approximately 32% of all staked ETH. LDO tokens are actively used for governance, with regular proposals and voting taking place.
Token Distribution and Governance
The initial token distribution allocated tokens to founders, investors, and the DAO treasury. There are vesting schedules in place for team and investor allocations. The DAO treasury manages a significant portion of tokens, which are used for protocol development and ecosystem growth.
Technology Assessment
The core technology revolves around liquid staking, which allows users to maintain liquidity while participating in network security. The protocol does not involve traditional interest-bearing mechanisms, but rather distributes staking rewards proportionally to participants.
Crypto Impact
To assign a comfort level investing in Lido DAO from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Lido DAO.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.