Lido is a liquidity pool pledge solution. Lido allows users to bet on the PoS public chain with compound returns while participating in on-chain activities such as loans, with no minimum deposit or maintenance infrastructure required.

Lower the user pledge threshold, in the form of derivatives to improve the liquidity of assets.

Generally speaking, for ordinary users, the pledge threshold of PoS public chain is high, and once the pledge cannot be redeemed in a short time, the liquidity of funds will deteriorate.

Gather user funds and get compound returns by participating in DeFi through the derivatives generated after pledging.

Take Taifang 2.0 as an example. For pledors, they can pledge any amount of ETH to Lido's contract account, and Lido will distribute a corresponding amount of stETH (an ERC-20 token) to the user. The stETH balance is updated at 24:00 UTC each day to ensure that the stETH and ETH on the beacon chain are the same amount, thus realizing the real-time acquisition of pledge income each day. StETH is a liquid asset that can participate in a variety of DeFi activities, such as lending, insurance, mortgage, transaction, etc.

1. Grant governance rights to Lido DAO. 2. Management expense parameters and allocation. 3. Manage the addition and deletion of Lido node operators.

While lowering the pledge threshold, the utilization efficiency of assets is improved.

Support a variety of PoS public chain pledge, and continue to expand.

A total of 1 billion LDO tokens are allocated as follows: ● A total of 321.8 million pieces for investors (32.18%) ● 220 million pieces for seed investors, which will be unlocked linearly over 12 months starting in December 2021 ● 100 million pieces for Paradigm investors, which will begin in May 2022 ● Initial Lido developers will receive 200 million (20%) coins, which will be unlocked in 12 months starting December 2021 ● Founders and future team members will receive 150 million (15%) coins, which will be unlocked in 12 months starting December 2021. ● 65 million (6.5%) verified nodes and multi-signers will be unlocked in 12 months starting December 2021 ● 28.4 million (2.84%) in circulation Most of this LDO is released to stimulate the mobility of stETH/ETH (about 5 million pieces per month). Partnerships with 1Inch, Arcx, Unslashed, DeveriFi, Bancor and airdrops also consumed part of the LDO ● The remaining 235 million pieces (23.5%) are still controlled by DAO Treasury.

In DeFi, Lido Finance's competitors are Ankr\StakeHound\Fis\Rocket Pool\Liquidstake\Kira and so on. Their solutions are not fundamentally different. The ETH deposited on the platform by users is provided with a derivative to pledge ETH, and the liquidity between ETH derivatives (similar to stETH) and ETH is encouraged to meet the financial needs of users after pledging. The integration of ETH derivatives with other DeFi protocols can meet users' interest demand for ETH derivatives and reduce the opportunity cost of users' participation in pledge

In terms of TVL, the market value of its mortgage certificate, or the anchoring of its ETH derivatives and ETH, Lido has significant advantages. Its market share has exceeded 70% and is still rising gradually, showing a stable competitive advantage.

Jpmorgan Staking published an industry study on July 1, 2021, arguing that a next-gen upgrade to ETH2.0 could kick-start a $40 billion Staking industry and that "as cryptocurrency volatility declines, The ability to earn a positive real return will be an important factor in helping the market become more mainstream, "he said, adding that" earnings via collateral can reduce the opportunity cost of owning a cryptocurrency compared to other investments in other asset classes such as US dollars, US Treasuries or money market funds."

Although Lido chooses several professional verification nodes to spread risks and uses insurance funds to compensate for losses, losses may still not be covered. Smart contract security risk, DAO key management risk, etc.

In the future, with the progress of ETH2.0 and Lido's current advantages in the track, Lido's TVL will continue to grow. However, with the increase of the total amount of ETH2.0 pledge, the revenue generated by the overall pledge of ETH will decrease marginal, and the increase of LidoTVL will far exceed the decrease of the pledge revenue. Lido's revenue will continue to grow. And with the increasingly blurred distinction between stETH and ETH, and the promise of higher revenue features, Lido is likely to become the DeFi protocol with the largest TVL until ETH2.0 actually goes live.