The Lido protocol on the Polkadot network allows stakers to deposit their DOT tokens to receive staking rewards and also use their staked position as a liquid asset in other DeFi applications. Currently, to stake assets on Polkadot, users must lock their funds, which makes them illiquid for other protocols. Lido solves this task via creating a liquid staking position for users, which means that users will still receive rewards on their stake and their funds will also remain liquid for other protocols.
Lido is planning to integrate the stDOT token into various DeFi applications to increase the number of possible use cases of the stDOT token.
Staking with Lido allows users to receive rewards on their stake, with their funds remaining liquid for other protocols.