Lido Finance

Lido stETH

Lido stETH is a liquid staking token on Ethereum representing staked ETH. Yield is generated from Ethereum consensus and execution layer rewards distributed across a diversified validator set.

AUM

$18.88b+0.85%

APY

2.51%+7.76%

BBB+Rated Protocol

Updated Mar 9, 2026

Risk Rating

BBB+

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This rating is based solely on publicly available information. The range from BBB+ to AA reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

TokenContract

0xae7a...fE84

wstETH

0x7f39...2Ca0

InsuranceFund

0x8B3f...De35

WithdrawalQueue

0x889e...F9B1

NodeOperatorsRegistry

0x5503...28d5

Governance (Aragon Agent)

0x3e40...9C8c

Governance (Aragon Voting)

0x2e59...618e

Key Strengths

Extensive audit coverage from top firms including ChainSecurity, Certora, OpenZeppelin, and Consensys Diligence across multiple protocol versions
Recent V3 audits with critical findings resolved by Sigma Prime, MixBytes, Ackee, Certora, and Consensys with full re-verification
$2M bug bounty program on Immunefi covering smart contracts and web applications
Dual Governance activated in June 2025 enables stETH holders to impose delays and trigger rage quit at 10% opposition threshold
Superior client diversity across 680+ node operators with better balance than network-wide distribution
All slashing incidents fully compensated by operators with published post-mortems and zero depositor losses
Strong operational runway with substantial treasury balance and sustainable revenue model from staking fees

Key Risks

Extended withdrawal queues during stress with 16+ day delays and 0.3-0.6% depeg during July 2025 mass exits
Exit liquidity degrades during volatility as leverage strategies unwind and market conditions deteriorate
Secondary market peg can deviate under stress driven by leverage unwinding and extended validator exit queues
Bank-run scenario demonstrated in practice with significant delays though protocol survived with all requests processed
No published incident response playbook despite effective ad-hoc response to oracle compromise
Pending class action lawsuit with fact discovery closing February 2026 and summary judgment hearing in November 2026