Lido Dao Became 82th Largest Cryptocurrency by Market Cap.

As of November 3, 2022 Lido Dao has the market capitalization of $484 million , making it the 82^nd largest cryptocurrency by market capitalization.

Proof-of-stake is a method uses for processing transaction in blockchains. People can earn rewards by staking in a blockchain network.

Ethereum is moving from Proof-of-Work to Proof-of-Stake. For Ethereum 2.0, it required minimum amount of stake at 32 Ethers. If you want to be a validator on Ethereum blockchain. You might earn 2-5 ETH if you staked 32 ETH.

Furthermore, you need to run a validator hardware, which is a complicated technical skill. Lido Dao is basically a cloud staking service. You can stake Ethereum, Solana, Polygon, Polkadot, or Kusama to earn passive income. Lido would do the work of setting up validator hardware and share 5-10% of earnings with people who use the service.

The highlight of Lido Finance is if you stake the token Lido will give you a new cryptocurrency. For Ethereum, Lido give you stETH. This new cryptocurrency act like a bill of exchange. You can use it to convert back to Ethereum or other cryptocurrency you have staked. You can use it to lending and borrowing in DeFi. The Business model of Lido allow you to earn money from both Lido Finance and DeFi.

Many DeFi accept stETH including Curve, MakerDao, AAVE, SushiSwap Onsen, 1Inch, FTX, Balance, Yearn, ETC.

Token symbol of Lido is LDO. LDO is a governance token. Currently LDO still uses as a governance token only.

Cryptocurrencies you can stake on Lido

1. Ethereum

2. Solana

3. Polygon

4. Polkadot

5. Kusama

In term of investing, Lido Finance is good for staking but for holding tokens, they have very little in capturing value from Lido Finance business.

References

-https://cointelegraph.com/ethereum-for-beginners/ethereum-2-0-staking-a-beginners-guide-on-how-to-stake-eth

-https://lido.fi/