Lido is the largest liquid staking provider in the crypto ecosystem. It solves the liquidity problem of traditional staking by issuing stETH, a rebasing token that represents staked Ether. Unlike solo staking, which requires 32 ETH and technical hardware, Lido allows users to stake any amount. The protocol routes these deposits to a diversified set of Node Operators. Recently, the protocol expanded its architecture with the Staking Router, enabling a modular approach where different validator subsets (modules) can be added to the network.

The Lido ecosystem has executed critical upgrades focused on decentralization and economic sustainability:

Dual Governance Activation (July 2025): The protocol successfully activated Dual Governance. This safety mechanism grants stETH holders the ability to veto governance proposals passed by LDO holders. If LDO holders pass a malicious or contentious proposal, stETH holders can trigger a "Global Settlement," pausing the protocol to allow users to exit safely.

Community Staking Module (CSM) Mainnet: In early 2025, the Community Staking Module graduated to mainnet. This marked the first time Lido allowed permissionless entry for Node Operators. Now, solo stakers can run validators for the protocol by posting a bond (in ETH or LDO), significantly decentralizing the validator set beyond the original permissioned cohort.

GOOSE-3 & Buyback Proposal (Nov 2025): The DAO introduced the GOOSE-3 strategy, proposing a transition from a simple staking middleware to a comprehensive DeFi platform. Alongside this, a proposal was introduced to direct surplus protocol revenue toward LDO token buybacks when specific revenue thresholds are met, aiming to align token value with protocol growth.

The LDO token is utilized for the management and oversight of the protocol:

Protocol Governance: LDO holders vote on all protocol upgrades, including the addition of new staking modules and oracle updates.

Node Operator Selection: For permissioned modules, LDO holders vote to onboard or remove Node Operators based on performance.

Treasury Management: The DAO manages a treasury of assets, funding ecosystem grants (LEGO) and core development.

Consensus: DAO Governance (with stETH Veto)

Token Standard: ERC-20 (Ethereum)

Core Product: Liquid Staking (stETH)

Architecture: Staking Router (Modular Validator Sets)

Total Supply: 1 Billion LDO