LDO

LDO is the governance token of Lido Finance, a liquid staking protocol built on the Ethereum blockchain that allows users to stake their ETH without maintaining validator infrastructure or meeting minimum stake requirements. The token operates as an ERC-20 standard token and serves as the primary mechanism for decentralized governance of the Lido protocol, enabling LDO holders to vote on key protocol parameters, fee structures, and treasury management decisions. Lido addresses a critical limitation in Ethereum's proof-of-stake system by enabling smaller token holders to participate in staking and earn staking rewards through a liquid staking derivative called stETH, which represents their staked ETH and accrues staking rewards while remaining transferable and composable within decentralized finance applications. The LDO token has become one of the most prominent governance tokens in the DeFi ecosystem due to Lido's significant total value locked and its pivotal role in Ethereum's validator ecosystem. LDO token holders earn protocol fees and participate in governance decisions that shape the future development and risk management of one of the largest liquid staking platforms in cryptocurrency.