Lido is an Ethereum-centric liquid staking protocol that allows users to maintain DeFi liquidity while receiving staking rewards through stETH or wstETH when they deposit ETH. The Lido document explains that the protocol fee is 10% of the staking reward, and this fee is distributed to the node operator and DAO Treasury. Lido’s core economic structure is “converting illiquid ETH staking positions into liquid ERC-20 collateral assets”.
Investment View
Lido's overall maturity is evaluated at 80.5%. However, Lido's weakness is not the lack of product adoption, but the concentration risk arising from its success. If it fails, Lido will likely remain a mature DeFi infrastructure, still large, but with a weakened growth narrative.