Lido Deep Dive: Everything You Need To Know 💧

By now, you’ve probably heard of Lido, known as the “liquid staking solution for Ethereum.” 

Since debuting earlier this year, users have diligently aped into the protocol, depositing more than $6.10 billion to it. 

The team behind Lido has also been hard at work expanding the protocol. They’ve already debuted new staking options to the platform in recent months in the form of LUNA and SOL in search of even more users.

Lido developers expanding the protocol

But what is liquid staking? 🤔  💧 🧐

And how does it let users double-dip yields? 🤯 💰💰

What’s the deal with stETH, bLUNA, stSOL, and LDO? 🪙 ​​ 🪙 🪙

And why is everyone so damn excited about Lido? 🎉 🥳 📈

Let’s find out together.

Lido = Liquid Staking

Lido describes itself as “an Ethereum-based liquid staking solution supported by leading blockchain staking providers.” It allows users to receive rewards for staking ETH, LUNA, or SOL.

How does that relate to double-dipped yields?

Well, Lido seeks to solve one of the major downsides to staking —  namely the illiquidity, immovability, and inaccessibility of funds usually dedicated to staking. 

To do so, the protocol essentially enables users to double-dip on their tokens. Users can earn rewards in the form of stETH, bLUNA, and stSOL, while still allowing these tokens to be deployed across the DeFi ecosystem.

Users can stake their tokens individually by running their own validator node or by delegating to a validator based on the size of their deposit. Rewards are distributed on a 1:1 basis representing their staked currency — ETH deposits are rewarded with stETH, LUNA deposits with bLUNA, and SOL deposits with stSOL. 

Each token can then be used to earn extra yield — aka be double dipped. That means more return on investment, so make sure your bags are ready.

Bugs Bunny Looney Tunes GIF - Bugs Bunny Looney Tunes Cash GIFs
Double-yields = more ROI

What are stETH, bLUNA, stSOL, and LDO?

stETH is a token that represents staked ETH in Lido, while bLUNA represents staked LUNA, and stSOL represents staked SOL. 

They are pegged 1:1 to the corresponding currency staked to the protocol, and balances are updated daily when oracles report changes in total stake. These tokens can be used largely the same as their partners, allowing users to earn staking rewards while still taking advantage of higher yields available across other DeFi protocols (there’s that double-dipping we were mentioning earlier.)

LDO, meanwhile, is the governance token for the Lido DAO. The DAO oversees staking protocols, key parameters, and protocol upgrades. Holders are granted voting rights for each token they hold; more LDO means more voting power. 

Considering apeing into LDO? See LDO price information over the past month from CoinMarketCap below (but remember — this is not financial advice 😉).

Learn more

Lido data, bounties, and more have arrived at Flipside Crypto and we want you to get involved.

First, join our community on Discord, and subscribe to our weekly newsletter, the Bounty Brief. That way you won’t miss out on any of our bounties, educational content, and more. You can also check out Flipside Crypto’s video tutorials. They’ll help you get started with Velocity and learn how to get paid for solving crypto bounties.

Or, if you’d like to learn more about Lido, check out the Lido website. You can also check out their FAQ, or follow Lido on Medium or Twitter.

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