Lido is a liquid staking solution for Ethereum, Solana, Polygon, Polkadot, and Kusama - allowing investors to put their staked tokens to work, while LDO is the native ERC-20 governance and utility token for the protocol. Users can use LDO tokens to vote on developments for the protocol and earn them through referral programs, airdrops, and more. Whatever your investments, Koinly can help calculate taxes for 400,000+ ERC-20 tokens, including LDO. Here's how.
The taxes you pay on crypto - including LDO tokens - depends on where you live, so read our crypto tax guides for specific information about where you live. But broadly speaking, two taxes may apply to your LDO transactions:
The IRS, and other tax offices, have highlighted crypto as a key focus this tax season, and your LidoDAO investments will be no exception. But can the IRS track crypto?
Your LDO transactions are all recorded on the Ethereum public ledger... and a public ledger is just that - public. Anyone can search for a given address to look at the transactions made - including the IRS. If the IRS can link your identity to a given wallet or transaction - then they may know about your investments, even if you’ve used decentralized protocols like LidoDAO and non-custodial wallets.
As always, we recommend a conservative approach to crypto taxation to avoid provoking the ire of the IRS and potential audits or crypto tax penalties.
How to prepare and file your crypto taxes depends on your tax office, but you'll usually report your gains or income from crypto - including LidoDao investments - as part of your annual tax return.
To do this for your LDO tokens, you'll need to identify each taxable transaction involving LDO tokens, and the kind of tax that applies. So you'll need to calculate a capital gain or loss for every time you sold or swapped LDO tokens, as well as calculate the fair market value in your fiat currency for any LDO tokens viewed as additional income.
If you think that sounds time-consuming, you’d be right - which is why most investors use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including LDO!
Of course, when we talk about LidoDAO taxes, many investors will be wondering whether Koinly can help them calculate their other transactions relating to the LidoDAO protocol - and the answer is yes! You just need to connect your blockchain to Koinly to do so using your public address. Here's how it works.
To import your LDO transactions into Koinly, you’ll need to connect each Ethereum wallet you use to Koinly.
This is really easy to do, you just need your public address - but remember, you’ll need to do this for each Ethereum wallet you use to interact with LDO in order for Koinly to correctly identify your cost basis, transfers, sales, swaps, and more. As well as this, if you're using the Lido protocol to stake tokens and transacting with other tokens - for example, stSTOL, stMATIC, stDOT, and so on - you'll need to connect these blockchains to Koinly as well using your public address in order for Koinly to calculate your crypto taxes accurately.
You can find steps on how to connect a variety of popular wallets to Koinly on our integration pages, but here’s an example of how it generally works.
1. Remember, you’ll need to do this for every wallet you use to interact with LDO tokens (and any other wallets you use to interact with the Lido protocol) in order to calculate your crypto taxes correctly.
2. It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you find any transactions you believe have errors later on much more easily!
3. You may also be able to upload your transaction history to Koinly as a CSV file instead of connecting using your public address if you prefer, but this depends on the wallet you’re using. You can search for your wallet on our integration pages to find out more about how to get a CSV file from your wallet.
Problems connecting to Koinly? No worries - there's help at hand:
Sign up free today to calculate your LDO taxes
LidoDAO is a decentralized autonomous organization that provides a liquid staking solution for Ethereum and other PoS blockchains. It allows users to stake their crypto without locking it up, and receive tokens in return, which represent a stake in the underlying asset but can be used on other protocols.
LDO is the native utility and governance token for the Lido protocol. LDO holders can vote for developments in the Lido protocol, as well as earn LDO tokens through a variety of incentive schemes. As well as this, you can buy, swap and sell LDO tokens like you would any other cryptocurrency.
You can buy LDO tokens on centralized exchanges like Coinbase, Binance, and Gemini, or trade other tokens for LDO tokens using decentralized exchanges like Uniswap. As well as this, Lido has various incentives to earn LDO tokens.
Like all cryptocurrencies, LDO price varies based on market conditions and demand. LDO has previously had an all-time high of $11 and an all-time low of $0.406.
LDO has a circulating supply of 853 million and a maximum supply of 1 billion.
LDO tokens allow holders to vote in governance issues relating to the Lido protocol - but you can also earn, swap and sell them as you would with any other cryptocurrency.
LDO is a popular token thanks to the popularity of the Lido protocol, and Lido regularly offers incentives to earn Lido tokens for participation in various schemes. However, as with any investment, you should do your own research before investing.
LDO tokens can be stored in various cryptocurrency wallets that support ERC-20 tokens, like MetaMask, Trust Wallet, and MyEtherWallet. But it's important to store your tokens securely and keep your private keys safe.
LDO tokens are an ERC-20 token on the Ethereum blockchain.
Lido is a popular protocol with more than $9 billion in assets staked, but it has its risks including technical risk, smart contract security, slashing risks, and the risk of staking tokens like stETH depegging. You should always DYOR to understand the risks involved.
To use Lido, just connect the wallet which holds the tokens you want to stake in to Lido and enter the amount you want to stake. Press stake, confirm the transaction in your wallet and you're done. You'll receive Lido staking tokens instead - for example, stETH in return for ETH and so on.
Yes, if you are a US citizen or resident, you are required to report any gains or losses from LDO, as well as any income from LDO, to the IRS as part of your income tax return. Failure to do so could result in penalties and fines.
You can use your stTokens in a variety of DeFi protocols to compound your rewards, including Curve, Aave, MakerDAO, and 1inch.
One of the main benefits of using Lido is that it lets investors earn staking rewards without having to lock up their asset, so you can continue to use an equivalent token of your asset on other investment platforms, while still earning rewards. As well as this, Lido helps users get around the pitfalls of self-staking, for example, with Lido, users don't need the minimum 32 ETH deposit in order to stake ETH.