What You Need to Know

• Lido’s V3 Upgrade involves a complete overhaul of its largest staking service on Ethereum, focusing on modular staking vaults called stVaults.
• Users will soon have the chance to stake into customizable stVaults, catering to the needs of institutions and enabling more sophisticated investment strategies, including restaking.
• If approved by the Lido DAO, V3 might launch on Ethereum’s mainnet by the third quarter of 2025.

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The development team at Lido is looking to reshape the staking process by introducing a new series of modular vaults designed to meet various user needs.

Currently, Lido empowers users to pool their Ether (ETH) for staking. Investors lock their tokens and generate interest from their contribution. Essentially, Lido made liquid staking possible, where users receive a receipt of their deposits in the form of Lido Staked ETH (stETH), which can be traded at any time.

The upcoming stVaults will facilitate a broader array of staking strategies, accommodating institutional interests and enhancing the ability to restake tokens across other platforms in addition to Ethereum. “What is important to understand with customizable infrastructure is that you can build more complex products,” stated Konstantin Lomashuk, founder of the Lido protocol.

The objective is for Lido to establish itself as a foundational layer for staking, providing neutral infrastructure accessible to all users who wish to stake, restake, or leverage their assets for increased liquidity.

Lido V3 was presented to the DAO for approval on Tuesday, marking a significant new phase in the project’s evolution. If the proposal is accepted, it signals a shift towards a more modular and user-centric staking experience, differing from the traditional model where all participants stake uniformly through a singular interface.