TokenRadar #004 – Lido (LDO)
Liquid staking at scale – but how decentralized is it really?”
🔹 Quick Profile
| Feature | Details |
|---|---|
| Project | Lido – Liquid Staking Protocol |
| Token | LDO |
| Category | Staking-as-a-Service (Ethereum + multichain) |
| Blockchain | Ethereum (mainnet), Polygon, Solana, Kusama, Polkadot |
| Market Cap | ~$1.8B (April 2025) |
| Circulating Supply | ~880M LDO (max supply: 1B) |
| TVL | ~$25B (DefiLlama) |
| StETH Supply | ~9.5M stETH issued |
| Governance | Lido DAO (Snapshot voting) |
| Legal Entity | No formal foundation, but contributors coordinated via P2P.org and other validators |
🔸 Tokenomics
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Utility:
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Governance token (Lido DAO)
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Does not accrue staking revenue directly
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Revenue Model:
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10% fee on staking rewards (split between node operators and the DAO)
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DAO treasury benefits — not LDO token holders directly
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Distribution:
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36.3% DAO treasury
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22.2% investors
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20% team
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15% validators
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6.5% airdrops
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Concerns:
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No direct staking yield for LDO holders
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Governance value may be underappreciated or speculative
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🔸 Security & Audits
| Sub-Element | Details |
|---|---|
| Auditor(s) | Sigma Prime, Quantstamp, ChainSecurity, MixBytes |
| Audit Reports | Audit repo |
| Last Major Audit | 2023 (Lido V2) |
| Bug Bounty | Active via Immunefi |
| Risk Level | Low – battle-tested with billions TVL over 2+ years |
🔸 Legal Entity & Governance
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DAO-based governance with multisig-controlled treasury
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No single foundation entity – ecosystem coordinated by contributors (e.g. P2P.org, Chorus One, Nethermind)
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Governance decisions handled via Snapshot proposals
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Concerns: Critics cite that large entities (e.g. a16z) hold disproportionate governance power
🔸 Compliance Check
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Jurisdiction: No centralized legal home – DAO structure
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SEC/Regulatory Risks:
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Ethereum staking is in the spotlight; Lido could be affected indirectly
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No official regulatory actions to date
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Risk: Medium – protocol level likely safe, token-level status unclear in the U.S.
🔸 User Reviews & Reputation
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Reputation: Extremely strong among Ethereum validators and users
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Criticism:
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High share in total staked ETH raises centralization concerns
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Token utility often misunderstood by retail
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🔸 Public Trust & Perception
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Transparency: Excellent – open governance, Discord, public audits
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Brand Strength: #1 liquid staking platform in the world
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Leadership: Pseudonymous coordination, but highly engaged
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Media: Frequently cited in Ethereum ecosystem reports, research, and mainstream crypto media
✅ RateEx42 TokenRadar Score
| Category | Score (1–10) | Notes |
|---|---|---|
| 1. Innovation | 9 | Liquid staking pioneer |
| 2. Use-Case & Demand | 10 | Central to Ethereum PoS operation |
| 3. Tokenomics | 5 | Weak direct utility — governance only |
| 4. Security & Audits | 9 | Multiple top-tier audits, Immunefi bounty |
| 5. Community & Adoption | 9 | Leading staking platform globally |
| 6. Liquidity & Volume | 8 | High stETH liquidity on Curve, DeFi usage |
| 7. Market Cap vs TVL | 9 | ~$1.8B MC vs $25B+ TVL = underpriced |
| 8. Legal & Governance | 6 | DAO-led, but no clear entity |
| 9. Compliance Check | 6 | No actions, but indirect regulatory exposure |
| 10. User Reputation | 8 | Strong ETH base, some misunderstandings |
| 11. Public Trust | 9 | Huge brand power in DeFi and Ethereum |
🔹 Final Score: 8.1 / 10
🔍 Conclusion:
Lido is a pillar of Ethereum’s staking layer — but its token value remains governance-centric, which may disappoint passive holders expecting yield. Nonetheless, its dominance, transparency, and technical solidity make it a top-tier protocol, albeit with growing decentralization concerns.
