[Crypto projects](https://revain.org/projects/) › Lido # Lido (LDO): how it works, supply and reviews ## In short - **Type**: Liquid staking protocol built from smart contracts on Ethereum, not a separate blockchain - **Initial distribution**: 1 billion LDO minted at the launch of the Lido DAO - **Risks and caveats**: Slashing of node operators can reduce staked assets, and in severe cases exceed rewards - **Checked**: 31 October 2026 ## Key facts - **Ticker**: LDO - **Official site**: [lido.fi](https://lido.fi/) Key facts checked on 31 October 2026 against official sources. ## What is Lido Lido is a liquid staking protocol on Ethereum: users deposit ETH and receive stETH, which tracks their staked ether plus rewards and stays transferable. The protocol is governed by the Lido DAO through the LDO token. ## Network and consensus | Parameter | Details | |---|---| | Type | Liquid staking protocol built from smart contracts on Ethereum, not a separate blockchain | | Runs on | Ethereum; stETH is the main token and wstETH its non-rebasing wrapper | | Validators | Deposited ETH is delegated to independent node operators running Ethereum validators | | Withdrawals | Since Lido V2 (May 2023) stETH can be burned to exit at 1:1 through a withdrawal queue | | Staking vaults | Lido V3 added stVaults: vaults that can mint the same canonical stETH | ## Supply and issuance | Parameter | Details | |---|---| | Initial distribution | 1 billion LDO minted at the launch of the Lido DAO | | Allocation | DAO treasury 36.32%, investors 22.18%, initial developers 20%, founders and future employees 15%, validators and signature holders 6.5% | | Issuance | No fixed emission schedule for treasury LDO (2021 statement) | | stETH model | stETH balance rebases with rewards; wstETH balance is fixed and grows in value against stETH | | Protocol fee | 10% of staking rewards, split between node operators and the DAO Treasury; changeable by DAO vote | ## What LDO is used for - LDO: voting in the Lido DAO on fees, node operators, oracles and upgrades - stETH: represents staked ETH plus rewards and can be used in DeFi - wstETH: wrapped, non-rebasing form of stETH for integrations - stETH holders can delay contentious DAO decisions through Dual Governance ## Who develops and governs Lido - **Governance**: Lido DAO; voting weight proportional to LDO held - **Software**: The DAO is an Aragon organisation; Easy Track handles routine motions - **Dual Governance**: Live since 4 July 2025: stETH holders can delay and exit before contentious proposals take effect - **Vote timing**: DAO on-chain votes take 9 days from start to execution; shortened votes 5 days, Easy Track 3 days - **Open source**: Code is published in the lidofinance GitHub organisation ## History | Date | Event | |---|---| | 15 October 2020 | Lido was introduced as a liquid staking solution for Ethereum's move to proof of stake | | December 2020 | Lido DAO launched with 1 billion LDO minted; founding members' tokens locked for one year | | 15 May 2023 | Lido V2 went live with ETH withdrawals | | 16 October 2023 | Lido on Solana stopped accepting new stake after a DAO vote to sunset it | | 16 December 2024 | Sunset of Lido on Polygon announced after an LDO holder vote | | 4 July 2025 | Dual Governance went live on Ethereum mainnet | | 30 January 2026 | Lido V3 with stVaults went live on Ethereum mainnet | ## Security and audits - Bug bounty on Immunefi since May 2021 with rewards up to $2,000,000; 43 reports rewarded as of 19 August 2026 - Protocol contracts are audited; audit reports are listed in the Lido docs ## Security incidents | Date | What happened | Source | |---|---|---| | 10 May 2025 | Key compromise: A Lido Oracle address operated by Chorus One appears to have been compromised and its ETH balance drained; Lido contributors started an emergency DAO vote to rotate the key in the oracle HashConsensus contracts. Lido says stakers were not affected and the protocol remained secure, with a 5/9 oracle quorum. Funds returned: not stated | [research.lido.fi](https://research.lido.fi/t/emergency-rotation-of-compromised-chorus-one-oracle/10037) | ## Official LDO contracts | Network | Contract address | |---|---| | Ethereum | [0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84](https://etherscan.io/address/0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84) | | Ethereum | [0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0](https://etherscan.io/address/0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0) | | Ethereum | [0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32](https://etherscan.io/address/0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32) | stETH (proxy), wstETH and LDO token addresses on Ethereum, as listed in the Lido deployed-contracts page. ## Risks and caveats - Slashing of node operators can reduce staked assets, and in severe cases exceed rewards - Smart contracts may contain bugs, and DAO votes can change protocol behaviour - stETH can trade at a discount to ETH on secondary markets during stress, and withdrawals wait in a queue - Lido wound down its Solana and Polygon deployments; it now focuses on Ethereum ## Official links - Website: [lido.fi](https://lido.fi/) - Docs: [docs.lido.fi](https://docs.lido.fi/) - Source code: [github.com/lidofinance](https://github.com/lidofinance) - Blog: [blog.lido.fi](https://blog.lido.fi) - Governance forum: [research.lido.fi](https://research.lido.fi) ## Questions and answers **What is Lido?** A liquid staking protocol on Ethereum: users stake ETH and receive stETH, which stays transferable while earning staking rewards. **What is the LDO token?** LDO is the governance token of the Lido DAO; 1 billion LDO were minted at the DAO's launch in December 2020. **What fee does Lido charge?** Lido takes 10% of staking rewards, split between node operators and the DAO Treasury (docs, 31 October 2026). **Can stETH be redeemed for ETH?** Yes. Since Lido V2 in May 2023, stETH can be burned to exit at a 1:1 ratio through the protocol's withdrawal queue. **Is Lido safe?** Lido's own risk disclosure lists slashing, smart-contract, governance and secondary-market price risks; it runs a bug bounty of up to $2,000,000. ## Sources - [Lido Docs - Introduction](https://docs.lido.fi/) - [Lido Docs - Lido DAO](https://docs.lido.fi/lido-dao/) - [Lido Docs - Tokens integration guide](https://docs.lido.fi/guides/lido-tokens-integration-guide/) - [Lido Docs - Deployed contracts](https://docs.lido.fi/deployed-contracts/) - [Lido Docs - Bug bounty](https://docs.lido.fi/security/bugbounty/) - [Lido Docs - Public Risk Disclosure](https://docs.lido.fi/prd) - [lidofinance/lido-dao README](https://raw.githubusercontent.com/lidofinance/lido-dao/master/README.md) - [Lido Blog - Introducing LDO](https://blog.lido.fi/introducing-ldo/) - [Lido Blog - Introducing Lido](https://blog.lido.fi/introducing-lido/) - [Lido Blog - V2 launch](https://blog.lido.fi/lido-v2-launch/) - [Lido Blog - V3 is live](https://blog.lido.fi/lido-v3-is-live-modular-infrastructure-for-a-new-paradigm-of-ethereum-staking/) - [Lido Blog - Dual Governance overview](https://blog.lido.fi/dual-governance-overview/) - [Lido Blog - Solana sunset](https://blog.lido.fi/sunset-lido-on-solana/) - [Lido Blog - Polygon sunset](https://blog.lido.fi/lido-on-polygon-sunset/) ## More in this section - [Optimism (OP)](https://revain.org/projects/optimism/) - [Peercoin (PPC)](https://revain.org/projects/peercoin/) - [The Graph (GRT)](https://revain.org/projects/the-graph/) - [Sky Protocol (SKY)](https://revain.org/projects/maker-sky/) - [Celestia (TIA)](https://revain.org/projects/celestia/) - [ether.fi (ETHFI)](https://revain.org/projects/ether-fi/) - [All Crypto projects →](https://revain.org/projects/) ## How voting works Votes are anonymous and carry no text. 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