LiDAR-inertial odometry (LIO) has been widely used in robotics due to its high accuracy. However, its performance degrades in degenerate environments, such as long corridors and high-altitude flights, where LiDAR measurements are imbalanced or sparse, leading to ill-posed state estimation. In this letter, we present LODESTAR, a novel LIO method that addresses these degeneracies through two key modules: degeneracy-aware adaptive Schmidt-Kalman filter (DA-ASKF) and degeneracy-aware data exploitation (DA-DE). DA-ASKF employs a sliding window to utilize past states and measurements as additional constraints. Specifically, it introduces degeneracy-aware sliding modes that adaptively classify states as active or fixed based on their degeneracy level. Using Schmidt-Kalman update, it partially optimizes active states while preserving fixed states. These fixed states influence the update of active states via their covariances, serving as reference anchors--akin to a lodestar. Additionally, DA-DE prunes less-informative measurements from active states and selectively exploits measurements from fixed states, based on their localizability contribution and the condition number of the Jacobian matrix. Consequently, DA-ASKF enables degeneracy-aware constrained optimization and mitigates measurement sparsity, while DA-DE addresses measurement imbalance. Experimental results show that LODESTAR outperforms existing LiDAR-based odometry methods and degeneracy-aware modules in terms of accuracy and robustness under various degenerate conditions.