Lido Proposes Modular ‘stVaults’ in Upcoming V3 Upgrade
Lido, the largest staking service on Ethereum, has proposed a revamp with modular "vaults" to enhance its staking platform.
- The new framework introduces stVaults, customizable components aimed at accommodating institutions and complex staking strategies.
- Lido allows users to pool their ether (ETH) for staking, securing the network in exchange for interest.
- It pioneered liquid staking, offering users staked ETH (stETH) receipts that can be traded anytime.
- stVaults are modular smart contracts designed to meet diverse needs of Ethereum participants.
- The upgrade targets institutional stakers, high-volume node operators, and asset managers.
- This reflects increasing institutional interest in Ethereum staking as firms seek yield-generating crypto products.
- The goal is to rebuild Lido as a foundational layer for various staking setups tailored to user risk profiles.
- The proposal aligns Lido with other modular DeFi products using vault mechanisms for lending and restaking.
- Core developers presented Lido V3 to the Lido DAO for approval, with potential launch on Ethereum’s mainnet by Q3 2025.