Stakers deposit funds into Lido and receive a return on investment in the form of staking rewards (supply-side fees).

Lido is a non-custodial staking protocol built on Ethereum and other blockchains. Lido was founded by a pseudo-anonymous team and launched in 2020.

LDO tokenholders own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Lido’s investors include ParaFi Capital, Bitscale Capital, KR1, etc.

governance

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Liquid staking

Lido Finance

# Lido Finance Fees Methodology

## 1. Overview

Fees are measured as the total economic value generated by Lido Finance's liquid staking products, including Lido Staked Ether. The gross staking rewards generated by the underlying validated assets before protocol fees are deducted are represented by this metric. Because a 10% protocol fee is charged on staking rewards (which is split between node operators and the Lido DAO treasury), total fees are calculated by scaling the protocol's revenue. This metric is utilized to assess the overall economic activity and value generation of the liquid staking platform.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers and `DistributeRewardsEvent` events from `stMatic` contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Lido Staked Ether revenue tracking

- **Purpose**: Capture the protocol's share of staking rewards generated from Lido Staked Ether
- **Logic**: ERC-20 token transfers of Lido Staked Ether are parsed on Ethereum. Transfers to the Lido DAO treasury address from the null address or the accounting contract are identified, excluding a specific denylisted transaction. Prior to the activation of the Staking Router, these treasury mints are multiplied by two to account for the node operator share. After the Staking Router activation, treasury mints are captured as-is, and token transfers to designated staking module addresses (representing node operator shares) are additionally aggregated.
- **Key fields**: `block_timestamp` (timing), `amount` (transfer quantities), `token_address` (asset identification)

### Component B: Lido Staked MATIC revenue tracking

- **Purpose**: Capture the protocol's share of staking rewards generated from Lido Staked MATIC
- **Logic**: `DistributeRewardsEvent` events from `stMatic` contracts are parsed on Ethereum. The reward amount is extracted from the event parameters.
- **Key fields**: `block_timestamp` (timing), `amount` (reward quantities), `token_address` (asset identification)

### Component C: USD conversion and normalization

- **Purpose**: Normalize revenue values to USD
- **Logic**: Combined revenue amounts from Lido Staked Ether and Lido Staked MATIC are normalized by decimal precision using asset metadata. The normalized amounts are then multiplied by end-of-day asset prices to determine the daily revenue in USD.
- **Key fields**: `timestamp` (timing), `revenue` (normalized revenue), `price_usd` (asset price)

### Component D: Total fees extrapolation

- **Purpose**: Calculate total fees from the protocol revenue
- **Logic**: Because the protocol revenue represents a 10% fee on the total staking rewards generated, total fees are calculated by multiplying the daily USD revenue by a factor of 10.
- **Key fields**: `timestamp` (timing), `revenue` (daily revenue in USD), `fees` (calculated total fees)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Lido FinanceLDO

Fees

Fees

Competitive landscape

Chain breakdown