Lido Review 2026: Liquid Staking (stETH/wstETH), Fees, Withdrawals, Risks & Restrictions

Liquid staking is one of those crypto inventions that feels obvious in hindsight: if staking rewards are the yield, why should you have to give up liquidity to earn them?

That’s the entire Lido pitch. You stake ETH through Lido, receive stETH in return, and your stETH balance accrues rewards over time. Instead of waiting around with locked ETH, you can hold stETH, trade it, use it in DeFi, or wrap it into wstETH for environments where non-rebasing tokens work better.

Lido isn’t an exchange, and it’s not a custodial platform in the classic sense. It’s a protocol governed by a DAO, with rules, fees, and risk controls baked into smart contracts.

 

Quick platform snapshot

Category	Lido at a glance
Launched	2020 (protocol launch)
Operator	Lido DAO (decentralized governance; no single CEO)
What it is	Ethereum liquid staking protocol
Main tokens	stETH (rebasing), wstETH (wrapped, non-rebasing)
Protocol fee	10% of staking rewards (users receive ~90% of rewards)
Withdrawals	Available via Lido Withdrawal Queue (request → claim)
KYC	Not required to stake via the protocol
Restrictions	Lido’s Interface terms prohibit use from certain sanctioned/embargoed jurisdictions

1) Background: what Lido is (and who runs it)

Lido launched in 2020 as a liquid staking protocol for Ethereum. It’s governed by the Lido DAO, which sets parameters like fee configuration, staking module settings, and protocol operations through governance.

There’s no conventional “CEO” running Lido like a centralized company. Instead, it operates through DAO governance and contributors, with on-chain configuration and published protocol mechanics.

2) What you actually get: stETH vs wstETH

Lido’s user experience is built around two representations of the same staking position:

stETH (rebasing)

• stETH represents your share of ETH staked through Lido.
• It’s rebasing, meaning your stETH balance increases as staking rewards accrue (typically reflected regularly through protocol accounting/oracle reporting).

wstETH (wrapped stETH, non-rebasing)

• wstETH represents the same position, but in a non-rebasing format.
• Your wstETH balance stays constant, while the value per token increases as rewards accrue.
• wstETH is widely used in DeFi apps that prefer “fixed-balance” accounting.

In practice: if you’re a simple holder, stETH is intuitive. If you’re using DeFi, wstETH often behaves better across protocols.

3) Full list of Lido products and services (complete catalog)

A) Ethereum liquid staking (core)

• Stake ETH and receive stETH
• Option to hold stETH or convert to wstETH
• Rewards accrue automatically through token mechanics

B) Withdrawals (unstaking)

Lido supports an on-chain withdrawal process through its Withdrawal Queue:

• Request withdrawal: you lock stETH/wstETH into a request (the protocol sources ETH to fulfill it)
• Claim: once processed, you claim ETH

Under normal conditions, Lido describes the process as typically taking days, depending on queue conditions and Ethereum dynamics.

C) DeFi integrations (utility layer)

Lido is deeply integrated across DeFi, which typically includes:

• Using stETH/wstETH as collateral
• Leveraged staking strategies (deposit stETH, borrow ETH, restake, repeat—high risk)
• Liquidity markets where stETH trades against ETH

This isn’t “extra yield for free”—it’s composability, and composability cuts both ways when markets get ugly.

D) Lido Institutional

Lido offers institutional-oriented documentation and product framing for entities that want:

• A standardized liquid staking position (stETH/wstETH)
• Risk disclosures and operational clarity around smart contract and slashing risks
• Integration-friendly staking exposure

E) Governance (LDO)

Lido DAO governance is driven through LDO, which is used for voting on protocol parameters, module configuration, and operational decisions.

F) Multichain status (what’s active vs sunset)

Lido previously expanded beyond Ethereum, but several non-Ethereum deployments have been sunset:

• Solana: staking was discontinued (no new stake accepted) and the front-end support ended in early 2024 (unstaking after that required non-UI paths).
• Polygon (MATIC/POL): staking deposits were discontinued starting December 2024, with a sunset timeline for UI support and withdrawals.

In 2026, Lido’s primary, actively promoted product is Ethereum liquid staking (stETH/wstETH).

4) Fees and costs: what you actually pay

Protocol fee (the big one)

Lido applies a 10% fee on staking rewards.
That fee is split across protocol stakeholders (configured by Lido DAO staking modules), while users receive the remaining ~90% of staking rewards.

Network fees (gas)

Because this is on-chain:

• Depositing ETH to stake costs gas
• Claiming withdrawals costs gas
• Converting / wrapping / interacting with DeFi costs gas

Market costs (stETH price risk)

Even though stETH is designed to represent staked ETH value, it can trade at a premium or discount on secondary markets. That spread is a real cost/benefit depending on when you enter/exit via markets rather than withdrawals.

5) KYC and AML: what’s required

Lido is a protocol. Staking through the protocol does not require identity verification in the way centralized exchanges do.

However, access to the Lido Interface is governed by Terms of Use and restrictions (see next section). And if you interact with centralized services around stETH (exchanges, custodians, institutions), those third parties may require KYC.

6) Availability and restricted jurisdictions

Lido’s Interface Terms of Use include restrictions that prohibit use by residents/citizens/entities in Restricted Territories tied to sanctions/embargo regimes. The listed restricted regions include:

Crimea, Cuba, Donetsk, Iran, Luhansk, North Korea, Syria and other jurisdictions subject to major embargo/sanctions regimes as defined in the terms.

Simply put: the protocol exists on Ethereum, but the official Interface is not meant to be used from sanctioned/embargoed regions.

7) Risks (read this like a grown-up)

Lido’s own institutional and help materials emphasize three main risk buckets:

Smart contract risk

Bugs or vulnerabilities in protocol contracts can lead to loss of funds, even if code is audited and battle-tested.

Slashing / validator performance risk

Validators can be penalized for misbehavior or downtime. Slashing risk exists in Ethereum PoS, and Lido’s design mitigates it through diversification and operational controls—but it can’t delete it.

stETH price risk

stETH is liquid and tradable. That means it can deviate from ETH in the market, especially under stress, leverage unwinds, or liquidity shocks.

Liquid staking gives you flexibility. It also gives you an extra moving part.

Who Lido is best for

• ETH holders who want staking rewards without giving up liquidity
• DeFi users who need a widely accepted liquid staking asset (stETH/wstETH)
• Institutions that want a liquid staking position with extensive ecosystem integrations
• Users comfortable with smart-contract and market-structure risks

FAQ

1. Is Lido a centralized company?
   No. Lido is governed by the Lido DAO; it is not run like a traditional company with a single CEO.
2. What’s the difference between stETH and wstETH?
   stETH is rebasing (your balance increases). wstETH is non-rebasing (your balance stays the same while value per token increases). Both represent the same staking position.
3. What is Lido’s fee?
   Lido applies a 10% fee on staking rewards, so users receive approximately 90% of the staking rewards (before gas and market effects).
4. Can I withdraw ETH from Lido?
   Yes. Lido supports withdrawals via an on-chain Withdrawal Queue (request withdrawal → claim ETH once processed).
5. Does Lido require KYC?
   No KYC is required to stake through the protocol, but the official Interface has jurisdiction restrictions, and third-party platforms may require KYC.
6. Is stETH always worth exactly 1 ETH?
   Not always on secondary markets. stETH can trade at a premium or discount relative to ETH depending on liquidity and market conditions.
7. What are the main risks?
   Smart contract risk, validator slashing/performance risk, and stETH price risk.
8. Is Lido available everywhere?
   No. Lido’s Interface Terms restrict usage from certain sanctioned/embargoed jurisdictions (including Crimea, Cuba, Donetsk, Iran, Luhansk, North Korea, and Syria).
9. Does Lido still support Solana or Polygon staking?
   Those deployments have been sunset (Solana earlier; Polygon deposits discontinued starting December 2024). Lido’s main active focus is Ethereum liquid staking.
10. Who should avoid Lido?
    Anyone who is not comfortable with smart contract risk, potential stETH market deviations, or complex DeFi composability risks.