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Hydro LST Review 2026: Liquid Staking and LSTFi on Injective

Hydro LST is a liquid staking and LSTFi platform on Injective, with auto-compounding, lending, a leveraged Loop Stake feature and built-in swaps. It holds about 11.8 million dollars in TVL, but users should check fees and leverage risk themselves.

Injective

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

6.8/10

Good

Visit Hydro LST

Our verdict on Hydro LST

6.8/10

Hydro LST suits Injective users who want to stake and then put the liquid token to work through auto-compounding, lending and pools. Its strength is the range of features built around one staking token, backed by roughly 11.8 million dollars in TVL and two listed audits. The caveat is layered risk: smart contracts, pool liquidity and the leverage in Loop Stake. Fees and team details are not shown on the homepage, so start small and read the docs first.

Score breakdown

How Hydro LST scores

Security: 6.3/10
Ease of use: 6.5/10
Fees: n/a
Features: 7.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Hydro LST?

Hydro LST is the liquid staking arm of Hydro Protocol, a DeFi platform on Injective. DefiLlama describes it as an LSD and LSDFi infrastructure platform, and lists it in the liquid staking category with about 11.8 million dollars in total value locked.

The product goes beyond simple staking. Its documentation covers auto-compounding, a lending market, a leveraged feature called Loop Stake, and a built-in swap linked to Injective DEX pools. The protocol has a token, HDRO, and has been tracked since January 2024.

The homepage itself carries little text, so most detail comes from the project's documentation. Team details and fee tables are not published on the front page.

How Hydro LST works

Liquid staking lets a user stake a token to help secure a proof-of-stake network and receive a liquid receipt token in return. The receipt token represents the staked position and earns rewards, so it can be used in DeFi while the original asset stays staked.

Hydro builds extra layers on top, which it calls LSTFi. According to its documentation, rewards can be auto-compounded, the liquid tokens can be used in a lending market, and a Loop Stake feature applies leverage to staked assets. A built-in swap connects to pools on Injective's Helix DEX and third-party venues such as Dojoswap.

Each layer adds some risk. Liquid tokens depend on smart contracts and on pool liquidity, and leveraged positions can be liquidated if prices move against the user.

6 features

Key features

Liquid staking on Injective

Users stake assets on Injective and receive a liquid staking token that can be used elsewhere in DeFi.

Auto-compounding

Rewards are compounded automatically so users do not need to claim and restake by hand.

Loop Stake

A leveraged yield optimization feature intended to raise the efficiency of staked assets.

Hydro Lending

A lending market with documented core concepts, supported assets, liquidations, risk parameters and fees.

Built-in swap

A basic swap in the interface tied to hosted liquidity pools on Injective Helix and Dojoswap.

LP pools

Documentation describes three main pools on Injective's Helix DEX or third-party DEXs such as Dojoswap.

Pros and cons

What we like

Focused on Injective, so it fits users who already stake INJ within that ecosystem
Auto-compounding removes manual reward claiming
Combines staking, lending, swaps and pools in one interface
Two audits are listed for the protocol
About 11.8 million dollars in TVL gives it meaningful scale for its niche

Watch out for

Smart-contract risk applies to the liquid staking, lending and leveraged Loop Stake features
Loop Stake is a leveraged feature, so losses can be amplified and positions can be liquidated
Concentrated on Injective, so it is exposed to that single chain's health and liquidity
Fee levels, validator selection and team details are not stated on the homepage
Liquid staking tokens can trade away from their underlying value on DEX pools
Documentation and homepage content are sparse, so users must read the docs closely

Hydro LST fees

Hydro's homepage does not publish a fee schedule. The documentation has a fees section under Hydro Lending, and fees for staking and swaps should be checked in the app before confirming a transaction.

On top of protocol fees, users pay Injective network gas, and swaps on pools carry DEX trading fees and price impact. Leveraged positions may also add borrowing costs.

Is Hydro LST safe?

DefiLlama lists two audits for the protocol, but the homepage does not name the auditors or link the reports. Audits reduce but do not remove the risk of bugs in staking, lending and leverage contracts.

Users keep tokens in their own wallet but depend on Hydro's contracts and on liquidity in third-party DEX pools. Loop Stake adds liquidation risk. The project does not mention any hack or incident, and the project does not publish its team or legal status on the homepage.

6 steps

How to get started with Hydro LST

1
Read the Hydro documentation sections on liquid staking, lending and Loop Stake, including risk parameters.
2
Check that online DeFi services are permitted where you live.
3
Set up an Injective-compatible wallet and fund it with the asset you want to stake plus a little for gas.
4
Open the Hydro app from the official site and connect the wallet.
5
Start with a small stake and review the liquid token received and any fees shown.
6
Use auto-compounding first, and approach Loop Stake or lending only after understanding liquidation rules.

Open Hydro LST

Who Hydro LST is for

Hydro LST is for DeFi users who already operate on Injective and want more from staked assets than base rewards. It suits people comfortable with wallets, liquid tokens and liquidation mechanics, and is less suited to beginners or anyone who wants a simple, low-risk staking product.

Hydro LST FAQs

What is Hydro LST?

Hydro LST is the liquid staking part of Hydro Protocol, a DeFi platform on Injective. It lets users stake and receive a liquid token, then use that token in lending, pools and other yield features.

Which blockchain does Hydro run on?

DefiLlama lists Hydro on Injective only. Its documentation also refers to Injective's native Helix DEX and third-party DEXs such as Dojoswap.

Does Hydro auto-compound staking rewards?

Hydro's documentation describes an auto-compounding feature that lets users set it and forget it. Staking rewards are reinvested to grow the position instead of being claimed by hand.

What is Hydro Loop Stake?

Loop Stake is described as a leveraged yield optimization feature that aims to make staked assets work harder. Leverage can multiply losses as well as gains, and a position can be liquidated if its collateral falls too far.

Has Hydro been audited?

DefiLlama shows two audits listed for the protocol. Details of the auditors and findings are not given on the homepage, so read the audit reports in the documentation before depositing. An audit does not remove smart-contract risk.

Does Hydro have a token?

The protocol has a token listed as HDRO. The project does not describe its exact utility, so check the project's docs for how it is used.

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