About Lido DAO (LDO)
Lido DAO is a liquidity storage protocol built on the Ethereum network that allows ETH to be stored and converted into ETH2 during the initial phase of consolidation to be stored in other protocols. This use case is important because since the launch of the Proof-of-Stake (PoS) Beacon chain in December 2020, Any ETH coins stored on Ethereum have been locked up and become unavailable for use outside of their storage transaction.
With the help of the network's own digital currency, LDO, Lido DAO enables the conversion of stored Ethereum tokens into stETH, allowing its liquidity to be stored in other protocols. Following the 2022 Ethereum merger, Lido continued to pool users' ETH to validator nodes, allowing anyone to participate in staking regardless of their individual ETH balance.
LDO is used as a network governance token on the Lido platform. The LDO token is key to the governance of Lido DAO and its value is tied to the success of the platform. LDO token holders can vote on proposals that affect how Lido DAO operates, such as fees, adding new storage assets, and choosing node operators. A portion of the fees Lido charges for storage rewards is used to buy back and burn LDO tokens, and this can cause the value of LDO to increase over time as inventory declines.
The LDO token is also used to incentivize various participants such as protocol developers, node operators, and users to contribute to its growth. Binance displays and updates the price of LDO in real time.