Lido Finance is probably another name you're familiar with if you've been following Ethereum for the past three years.

With its inception shortly after Ethereum started its shift to a proof-of-stake blockchain, the extensive liquid staking protocol currently has the majority of the staking market share.

More than 27.8 million Ethereum have been staked overall across several cryptocurrency exchanges, individual validators, and decentralized protocols like Lido, according to a frequently cited Dune dashboard by Hildobby. This amounts to about $50 billion.

With over 31% of that amount staked, Lido Finance is the most widely used staking service available. However, what is Lido Finance, liquid staking, and how does it all work?

To find out, continue reading.