Lido is a liquid staking solution for proof-of-stake (POS) blockchains, aggregating node operator partners who run the underlying validator infrastructure on the Ethereum, Solana, and Terra blockchains. The project launched in December 2020 when Ethereum 2.0 (“beacon chain”), Ethereum’s POS chain, first entered Phase 0 and only allowed users to stake on Ethereum 2.0 in multiples of 32 ETH. Once ETH is staked to the beacon chain, it cannot be bridged back to the original Ethereum (“Ethereum 1.0”).

For example, Lido provides liquidity by issuing stETH in exchange for users depositing ETH, allowing them to earn staking rewards on Ethereum 2.0 while maintaining liquidity and reducing the 32 ETH requirement to any amount. When the beacon chain is rolled out, users will be able to “unstake” their stETH for the corresponding amount of ETH2 on the beacon chain. In essence, when holding any Lido st-assets, users can earn staking rewards while maintaining their liquidity. As of February 2022, Lido DAO has support for Ethereum 2.0, Solana, and Terra, with support for more POS blockchains to come.