About Lido Staked Polkadot
Lido DOT Liquid Staking Protocol, built on the Polkadot chain, allows their users to earn staking rewards on the Polkadot chain without locking DOT or maintaining staking infrastructure. Lido on Polkadot make DOTs liquid while staking. It ensures maximized yield and availability of staking and makes leverage options possible while being decentralized and secure.
Users can deposit DOT to the Lido smart contract and receive stDOT tokens in return. Unlike DOT staked directly on the Polkadot network, the stDOT token is free from the limitations associated with the lack of liquidity and can be transferred at any time. The stDOT token balance corresponds to the amount of the Polkadot chain DOT that a holder can withdraw.
That becomes possible because of permissionless validator node selection and dynamic reallocation algorithms along with slashing hedging deployed on Moonbeam parachain and empowered by XC-20 cross-chain token standard.
