Lido Developers Propose Innovative Staking Platform Revamp
The team behind Lido, recognized as the largest staking service on the Ethereum blockchain, has unveiled an ambitious plan to transform the staking platform through the introduction of modular “vaults.” This innovative framework aims to incorporate stVaults, a customizable component tailored to meet the needs of institutional clients and facilitate more complex staking strategies.
Currently, Lido enables investors to pool their Ether (ETH) and engage in staking—a process that locks up their tokens with the Ethereum network to enhance its security, all in exchange for interest. Lido is a pioneer in liquid staking, allowing users to receive a receipt for their deposits known as Lido staked ETH (stETH), which can be traded at any moment. This feature has revolutionized the way users enter and exit staking positions, making it as straightforward as buying and selling stETH tokens.
According to a press release shared with CoinDesk, Lido V3’s stVaults are described as “modular smart contracts designed to meet the diverse and evolving needs of Ethereum participants.” This upgrade will permit staking configurations that go beyond the traditional model of liquid staking.
Specifically, stVaults are expected to cater to institutional stakers looking for personalized staking solutions, node operators aiming to attract high-volume stakers, and asset managers interested in developing new staking use cases. This strategic move underscores the increasing institutional interest in Ethereum staking, as financial firms seek to incorporate yield-generating crypto products into their investment portfolios. The introduction of modular building blocks through stVaults is designed to accommodate this growing demand and support various staking preferences.
Konstantin Lomashuk, the founder of the Lido staking protocol, emphasized the potential of customizable infrastructure, stating, “What is important to understand with customizable infrastructure is that you can generally build even more complex products.” He elaborated on the vision for Lido, asserting that the goal is to “rebuild Lido as a foundational layer.” He described it as “neutral infrastructure” that allows all users to stake their assets, utilize the platform, restake, and leverage their holdings while maintaining enhanced liquidity.
The developers’ vision for Lido V3 is to evolve the platform into an “open staking marketplace,” where users can select the staking setup that aligns with their objectives and risk profiles. This marks a significant departure from Lido’s previous approach, where all users engaged in staking through the same interface and received identical interest rates.
This shift aligns Lido more closely with other modular decentralized finance (DeFi) products, such as Morpho and Symbiotic, which utilize vault mechanisms for lending and restaking, respectively. Additionally, the upgrade enhances Lido’s utility for restaking—where ETH is “restaked” to secure other protocols alongside Ethereum. Lomashuk explained, “You can restake your stVault. Liquid restaking tokens can utilize this infrastructure to grow the APR.”
Lido V3 was formally presented to the Lido DAO— the decentralized autonomous organization that governs the protocol—by a group of core developers on Tuesday. If the DAO approves this proposal, Lido V3 could be operational on Ethereum’s mainnet as early as the third quarter of 2025. “Now it’s a new phase,” Lomashuk told CoinDesk, signaling an exciting evolution for the Lido platform.
