Lido
score
Fees: 10% commission on staking rewards
Good for ETH holders who want liquid staking with deep liquidity and a proven protocol. Weigh the centralization debate around Lido's dominant stake share and remember stETH can trade below peg in stress; this is not financial advice.
What Lido Does
Lido is a liquid staking protocol, launched in 2020, that lets you stake ETH and receive stETH, a liquid token representing your staked position plus accruing rewards. It is non-custodial in that the process runs through smart contracts and you hold the staking token rather than trusting a company balance sheet. Today it is effectively Ethereum-focused after winding down support for other chains.
Liquidity and Performance
Lido's biggest edge is scale: it is the largest liquid staking protocol, and stETH enjoys the deepest liquidity of any staking token across DeFi. That underpins our rewards score of 8 and a fees score of 8, both strong. Transparency and track record earn an 8 as well, reflecting long production history and on-chain visibility. Security and custody sits at 7.5.
The Fee
Costs are straightforward and competitive: Lido charges a flat 10% commission on staking rewards. There are no per-network surprises to untangle, which is part of why fees score so well. Combined with reliable reward performance, the flat rate makes the net yield easy to reason about.
The Centralization Debate
The main caveat is structural rather than operational. Lido commands a large share of all staked ETH, which raises legitimate concerns about network centralization — a debate that matters to Ethereum's health even if it does not affect your rewards day to day. There is also secondary-market risk: stETH briefly de-pegged during the 2022 market stress, a reminder that the token can trade below its underlying value under pressure.
Bottom Line
Lido suits ETH holders who want liquid staking with deep liquidity, a proven protocol, and a simple flat fee. You should go in aware of the centralization critique around its dominant stake share and the possibility of a stETH de-peg in a crisis. If those trade-offs are acceptable, it is a mature, well-tested option. This is not financial advice.
Overall 7.4 / 10 — the weighted average of the criteria above. How we score →
- + Largest liquid staking protocol with deep liquidity for stETH across DeFi
- + Non-custodial via smart contracts; users receive a liquid staking token
- + Transparent on-chain operations and a long production track record
- + Competitive flat 10% fee with strong reward reliability
- − Its large share of staked ETH raises legitimate network-centralization concerns
- − stETH briefly de-pegged during the 2022 market stress, exposing secondary-market risk
- − Now effectively Ethereum-focused after winding down support for other chains
Is Lido safe?
+
Lido is non-custodial and runs on audited smart contracts with a long production track record, earning security and custody a 7.5. The notable risks are the network-centralization debate around its size and the chance that stETH trades below peg during market stress, as it briefly did in 2022.
What is Lido's fee?
+
Lido charges a flat 10% commission on staking rewards. That single, predictable rate is competitive and helps its fees score an 8, with no per-network variation to untangle.
What is stETH?
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stETH is the liquid staking token you receive when you stake ETH with Lido. It represents your staked ETH plus accruing rewards and can be used across DeFi thanks to its deep liquidity, though it can trade below its underlying value during stress.
Why do people worry about Lido's size?
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Because Lido holds a large share of all staked ETH, critics argue it concentrates too much of Ethereum's validation, raising network-centralization concerns. This is a debate about network health rather than a direct threat to your individual rewards.
Does Lido support chains other than Ethereum?
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Lido is now effectively Ethereum-focused after winding down support for other networks, which is why asset coverage scores just 5. For multi-chain staking you would need a different provider.