Lido, the largest Ethereum staking protocol, is set to revamp the Ethereum staking landscape with the introduction of Lido v3.
This new era of Ethereum (ETH) staking comes with the launch of stVaults, the modular customizable infrastructure that will see Lido (LDO) bring institutions to the ETH staking ecosystem.
Lido v3 also means advanced staking strategies as well as enhanced integration across the decentralized finance market, the project told crypto.news via a press release. stVaults will offer modular smart contracts, with its functionality in addition to the Lido Core Protocol key to the targeted institutional adoption.
“With stVaults, the protocol expands into Ethereum Staking Infrastructure, offering a flexible foundation for the next phase of staking while upholding the security and decentralization the Lido protocol is known for,” said Konstantin Lomashuk, a founding contributor of the Lido protocol.
Lido v3’s modular design supports features such as customizable validator configurations, operational control, and personalized setups for institutional stakers. Node operators, curators, and asset managers are also set to benefit from the rollout.
“stVaults make it easier to create new use cases leveraging stETH’s universal collateral properties, providing seamless integration with the broader DeFi ecosystem,” the Lido team noted.
As the restaking market expands, the need to protect staked Ether holders from potential restaking risks grows. In response, stVaults will offer a compatible opt-in model for shared security, allowing users to access restaking opportunities without exposure to socialized risks.
The rollout of this functionality via Lido v3 will proceed if the Lido DAO community approves its design and general roadmap. Lido v3 will be implemented in phases, including an early adopter program, a testnet phase, and a mainnet launch.
