LDOUSD
Lido DAO / US Dollar (BINANCEUS:LDOUSD)
crypto

Lido is a liquid staking solution for Ethereum and other proof of stake chains. This allows users to stake their tokens without having to lock assets or maintain staking infrastructure. Users who stake via Lido receive daily rewards in the form of staking derivative tokens which are pegged 1:1 to the underlying staked assets. Users that want to stake with Lido deposit their ether into the Lido smart contract which runs on Ethereum 1.0. The user gets stETH in return, which is a tokenized version of ether staked by Lido. Holders of stETH can use the token to participate in other decentralized protocols (e.g. lending). stETH tokens are minted upon deposit and burned when withdrawn. Withdrawals of staked ether is currently not possible, but will be available once transfers and smart contracts are implemented on Ethereum 2.0. The deposited ether is distributed between the node operators that are selected by the Lido DAO. Node operators run validator nodes on behalf of the protocol. The deposited ether are then locked into the Ethereum proof-of-stake deposit contract. Oracles are used to communicate between the beacon chain and the Ethereum 1.0 chain. Concretely, the oracles keep track of the balances of the validators on the beacon chain. They send this data to Lido's Ethereum 1.0 smart contract on a daily basis. The balance of a validator can go up because it receives rewards and go down due to slashing and staking penalties. With every update that the oracle submits, the stETH token ratio is recalculated. If the staking rewards are larger than the slashing penalties, a profit is made. The balance of stETH increases by the same amount. The protocol applies a 10% fee to staking rewards, of which half is distributed to the node operators and split according to their share in the total stake value. The other half goes to the Lido treasury.