Lido DAO

Halal Rating :
Questionable
Last Price $1.80 Last updated:
Rank 72
1D Change 2.41 %
Market Cap $1.61b
Circulating supply 895,767,868
Maximum supply None

Crypto Overview

Categories
  • DeFi
  • DAO
  • Three Arrows Capital Portfolio
  • Paradigm Portfolio
  • Arbitrum Ecosystem
  • Liquid Staking Derivatives
  • Optimism Ecosystem

Project Overview

Lido DAO is a liquid staking solution for Ethereum and other proof-of-stake blockchains. The protocol allows users to stake their tokens while receiving a liquid representation (stETH for Ethereum) that can be used in DeFi applications while earning staking rewards.

Intended Utility

LDO serves as the governance token for the Lido DAO, enabling holders to vote on protocol parameters, upgrades, and resource allocation. Token holders can participate in decision-making regarding validator selection, fee structures, and protocol improvements.

Actual Usage and Adoption

Lido has become the largest liquid staking protocol with over $19 billion in Total Value Locked (TVL) as of 2024. The protocol currently handles approximately 32% of all staked ETH. LDO token is actively used for governance with regular proposal submissions and voting activity.

Token Distribution and Economic Model

Initial token distribution allocated 64% to investors and the DAO treasury, 22% to developers and founders (with vesting), and 14% for various programs. The project demonstrates strong development activity with regular updates and improvements to the protocol infrastructure.

Revenue Model

Lido generates revenue through a 10% fee on staking rewards, which is distributed between node operators (5%) and the DAO treasury (5%). This model does not involve traditional interest-bearing mechanisms but rather profit-sharing from network validation services.

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.

Justification for our Halal Rating