Lido Finance is a staking solution provider which provides services for Ethereum 2.0, Terra, Solana and Kusama. Users who stake with Lido are able to maintain the control and liquidity of their staked tokens.
LDO is the native token of the project. The current use cases for LDO include:
Governance: Users can vote for proposals to decide on key parameters such as setting fees, assigning node operators and oracles.
Value Accrual: There is a 10% fee on staking rewards that are split between node operators, the DAO, and a slashing insurance fund. The Lido DAO accrues value through receiving 5% of all staking rewards in real-time.
Liquidity Incentive: Users can provide liquidity to the liquid-staking tokens to receive LDO rewards.
The project consists of the following major components working in conjunction:
Liquid Staking: Users can stake the supported Proof-of-Stake (PoS) assets to receive a liquid token with accrued staking rewards without worrying about the steps and infrastructure required for staking.
As of May 9th 2022, the maximum and total token supply of LDO is 1,000,000,000. The current circulating supply is 338,291,584 (~34% of the total token supply).
Learn more about the token distribution of LDO here.