lst protocol review

Lido

Liquid staking protocol issuing stETH and wstETH, with node operator, oracle, governance, and withdrawal dependencies.

reviewedhigh

TVL

$30.00B

Protocol reported or analyst-entered value.

Exposure

$12.70B

Mapped collateral and market exposure.

Dependencies

1 critical dependencies.

Markets

3 monitor signals configured.

Protocol facts

Static fields from the typed research record.

ProductsstETH, wstETH, Withdrawal queue, Node operator registry

ChainsEthereum, Arbitrum One, Base, OP Mainnet, Polygon PoS

Categorylst

Review statusreviewed

Collateral, oracle, cap, and liquidation parameters by market.

1 rows

Market	Chain	Collateral	Oracles	LTV	Liquidation	Supply cap	Borrow cap	Utilization
stETH/wstETH issuance	Ethereum	stETH wstETH WETH	oracle:ethereum:lido:accounting-oracle	0%	0%	$12.00B	$0	44.0%

Findings separate the observed evidence from the analyst outcome.

Severity	Dimension	Finding	Outcome	Evidence	Sources
high	exposure concentration	LST concentration affects many markets	Liquidations can fail or correlated loss can propagate.	wstETH and stETH are accepted across major lending and liquidity markets.	Lido docs

Inbound and outbound trust assumptions touching this protocol.

Severity	Direction	Edge type	Dependency path	Analyst label
medium	outbound	accepts collateral	Lido -> stETH	Lido stETH/wstETH issuance accepts stETH as collateral or core liquidity
medium	outbound	accepts collateral	Lido -> wstETH	Lido stETH/wstETH issuance accepts wstETH as collateral or core liquidity
low	outbound	settles on	Lido -> Ethereum	Lido deployment inherits Ethereum settlement risk
low	outbound	accepts collateral	Lido -> WETH	Lido stETH/wstETH issuance accepts WETH as collateral or core liquidity

Public operational signals and review cadence.

Status	Monitor	Signal	Cadence
planned	Admin and guardian changes	Owner, guardian, Safe signer, threshold, and emergency role changes.	15 min after ingestion
planned	Oracle freshness	Heartbeat breaches, stale rounds, and large reference-market deviations.	5 min after ingestion
manual	Liquidity and cap shock	Supply cap utilization, borrow cap utilization, TVL drops, and liquidity depth changes.	Daily analyst review

Highest-severity paths that could transmit risk into or out of this protocol.

4 paths

Severity	Direction	Edge type	Dependency path	Analyst label
medium	outbound	accepts collateral	Lido -> stETH	Lido stETH/wstETH issuance accepts stETH as collateral or core liquidity
medium	outbound	accepts collateral	Lido -> wstETH	Lido stETH/wstETH issuance accepts wstETH as collateral or core liquidity
low	outbound	settles on	Lido -> Ethereum	Lido deployment inherits Ethereum settlement risk
low	outbound	accepts collateral	Lido -> WETH	Lido stETH/wstETH issuance accepts WETH as collateral or core liquidity