How does Lido DAO work?
Lido DAO is a decentralized autonomous organization (DAO) that is built on the Ethereum blockchain.
It is designed to provide a platform for users to pool their funds and earn rewards from staking and liquidity mining. The Lido DAO platform works by allowing users to deposit their funds into a pool, which is then used to purchase and stake various Ethereum-based tokens. The staked tokens are then used to generate rewards for the users in the form of additional tokens or ETH.
The rewards are distributed proportionally based on the amount of funds each user has staked in the pool. In addition, users can also participate in liquidity mining, which involves providing liquidity to certain token pairs on decentralized exchanges (DEXs). By providing liquidity, users can earn additional rewards in the form of fees generated from trades made on these DEXs.
The Lido DAO platform also allows users to vote on various proposals that affect how the DAO operates. This includes voting on which tokens should be added or removed from the staking pools, as well as voting on changes to fees and other parameters of the DAO. Overall, Lido DAO provides an easy way for users to earn rewards from staking and liquidity mining while also having a say in how the DAO operates.
