Lido is a company that tokenizes your stake in certain protocols (ETH2, LUNA, SOLANA) into tokens.
It's really easy to use, just connect your wallet and deposit your coins with them!
Disadvantages
Rates
They charge a 10% fee on what you earn from staking to provide you this service.
I would consider this a small fee as you would not have the headache of claiming rewards and worrying about validators changing the rate of commissions.
Advantages
Unlocking Period
You are not subjected to the unlocking period if you changed your mind and would like to unstake your tokens and move the crypto elsewhere.
Liquidity
There's over 6 Billion total value locked in their ecosystem which makes it quite a good liquidity pool on swaps like curve and uniswap.
Total Value Locked in Lido
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Conclusion
Feel free to use LIDO's token for Staking, DEFI or even Trading as it abstracts you away from the protocol's rules!