Lido Dao - a network and cryptocurrency that collected USD 13 billion in a year

Initially, Lido Dao was created to allow stacking in the new Ethereum 2.0 ecosystem. However, before the merge of this cryptocurrency ended, the equivalent of USD 13 billion was deposited there in the first year, and the provision of liquidity began with the network Solana and Terra. Is it still worth investing in Lido Dao and how does it all work? We check.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced, and also the most controversial cryptocurrency projects around the world. Today it's time for Lido Dao - blockchainwhich forced its holders to block their tokens for a whole year. And no one complained.

What is Lido Dao

Lido is a solution supported by the world's largest staking providers. It allows you to pledge the ETH, e.g. for lending. The solution was supposed to be helpful during the merge Ethereumso that you can simultaneously block the cryptocurrency, but also use it to support other blockchain protocols. But it began to be popular much earlier.

Lido Dao was launched in December 2020, weeks after the ETH 2.0 plans were made public by P2P Capital, KR1 and Semantic Ventures. The main investors include such famous names as Julien Bouteloup and Kain Warwick. Thanks to this, the project gained trust very quickly. By the time the protracted Ethereum update saw the light of day, the equivalent of $ 13 billion had already been deposited into it - and that's in less than a year after its inception. Much earlier than the new Ethereum 2.0 network came to the fore, tokens were placed via the Terra blockchains (from March 2021) and Solana (from September 2021). Thanks to this, cryptocurrency holders could earn money by staking, while maintaining the flexibility of exchanging them at any time. 

How does Lido work?

In the initial phase of the project, stackers of their tokens received sETH in the ratio 1: 1 to ETH. sETH could be further stacked or used to provide liquidity like regular ETH. Importantly, staking did not require meeting any limits: neither time nor quantity. 

You also got Lido Dao tokens for staking, as well as for depositing your resources with DeFi. During the entire time they were deposited, the funds were not blocked either. This allows you to select and add them to the liquidity pool, obtain or issue loans, or earn income from the referral program. Everyone chooses what is more profitable for him at a given moment. 

Interestingly, from December 2020, the stacked Lido tokens have been completely blocked for a whole year. The entire pool of liquidity - by voting - was managed by its holders. At that time, only 36% of the total supply was in circulation, which of course greatly contributed to the increase in the price of DAO tokens. The positive sentiment in the entire cryptocurrency market at that time was also important. 

LDO cryptocurrency quotes

The Lido Dao cryptocurrency can now be traded on 24 cryptocurrency exchanges around the world, including the largest of them - Binance. 312 out of the target 951 tokens are currently in circulation. As of September 154, 1, each of them will cost $ 000, which translates into a project capitalization of more than $ 000 million. The peak of quotations took place on September 000, 20, when as much as USD 2022 was paid for each DAO token.