Bond Luna

Lido is a liquid staking solution for Terra (Luna), backed by industry-leading staking providers. Lido lets users stake their Luna without locking assets or maintaining infrastructure whilst participating in on-chain activities, e.g. lending.

Our goal is to solve the problems associated with Luna staking - illiquidity, immovability, and accessibility - making staked Luna liquid and allowing to improve the security of the Terra network.

When staking with Lido, users receive bLuna tokens on a 1:1 basis representing their staked Luna or stLuna tokens representing their share of overall staked Luna. bLuna/stLuna balances can be used to earn yields and lending rewards.

Liquid staking protocols allow users to earn staking rewards without locking assets or maintaining staking infrastructure. Users can deposit tokens and receive tradable liquid tokens in return. The DAO-controlled smart contract stakes these tokens using elected staking providers. As user's funds are controlled by the DAO, staking providers never have direct access to the users' assets.

stLuna is a token that represents staked Luna in Lido, combining the value of initial deposit + staking rewards. stLuna tokens are minted upon deposit and burned when redeemed. stLuna tokens represent the user's share of overall staked Luna.

To see your stLuna balance in Terra Station wallet you need to add the CW20 token by its name. You can follow this manual.

bLuna is a token that represents staked Luna in Lido. bLuna's rewards have to be claimed manually on the "Claim" tab.

This depends on the protocol so please consult documentation or contact Lido support. When you send your bLuna to an external protocol, that protocol becomes the recipient of the staking rewards generated by the tokens. Some protocols may allow you to claim these rewards whilst others won’t.

The main differences are:

1. stLuna rewards are auto-compounded.
2. stLuna and bLuna are aimed at different DeFi protocols. E.g. you need bLuna for Anchor and stLuna for Mars.

LDO is an Ethereum token granting governance rights in the Lido DAO. The Lido DAO governs a set of liquid staking protocols, decides on key parameters (e.g., fees), and executes protocol upgrades to ensure efficiency and stability. By holding the LDO token, one is granted voting rights within the Lido DAO. The more LDO locked in a user’s voting contract, the greater the decision-making power the voter gets.

Lido is a secure liquid staking solution for a number of reasons:

• Open-sourcing & continuous review of all code.
• Committee of elected, best-in-class validators to minimize staking risk.
• Use of non-custodial staking service to eliminate counterparty risk.
• Use of DAO for governance decisions & to manage risk factors. Usually, when staking Luna you choose only one validator. In the case of Lido, you stake across many validators, minimizing your staking risk.

There exist a number of potential risks when staking Lido using liquid staking protocols.

• Smart contract security There is an inherent risk that Lido could contain a smart contract vulnerability or bug. The Lido code is open-sourced and audited to minimize this risk.
• Slashing risk Luna validators risk staking penalties, with up to 100% of staked funds at risk if validators fail. To minimize this risk, Lido stakes across multiple professional and reputable validators.

For now, there are no Lido fees on the staked Luna (it's to be changed in the future: follow the updates).

Validators apply a lower-than 10% fee on a user’s staking rewards to support their infrastructure.

There are two ways of converting bLuna and stLuna back to Luna:

1. Unbonding. The unbonding process is when your Luna tokens are undelegated from a validator and you get Luna tokens while your bLuna/stLuna tokens are burned. The process takes 21 days. You can unbond your stLuna/bLuna on the "Unbond" tab. When the Unbonding period ends, you Luna will be available on "Claim" tab
2. Selling bLuna/stLuna on Terraswap/Astroport.