Developers behind Lido, the largest staking service at Ethereum, suggested revamping the staking platform with modular “vaults.”
The new plot will introduce stvaults, a customizable outfit designed to help Lido accommodate institutions and more complex staking techniques.
Lido is currently allowing investors to pool their ether (ETH) together and “stake” their crypto -that their network tokens are locked, helping to secure it in exchange for interest.
Lido Pioneered Liquid Staking: Users get a receipt with their deposits called Lido Staked ETH (STETH) that they can trade at any time. With liquid staking in Lido, the entry and release of staking positions has become as simple as buying and selling steth tokens.
Lido V3 stvaults are “modular smart contracts designed to meet the diverse and emerging needs of Ethereum participants,” according to a press release shared with CoinDesk. Upgrading will allow staking setups beyond cut-and-dry liquid staking.
Specifically, stvaults can help institutional stakers who want to personalize their staking setups, node operators who want to attract high-volume stakers, and asset managers who want to create new cases of Using staking.
The move reflects the institutional interest in Ethereum staking as financial companies that explore ways to integrate products that make up yields in their portfolios. Stvaults should accommodate interest by introducing modular building blocks that fit different staking needs.
“What is important to understand with customizable infrastructure, is that you can generally build more complex products,” said Konstantin Lomashuk, the founder of Lido Staking Protocol.
The goal is “for Lido to be built as a layer of foundation,” Lomashuk said. “It’s neutral infrastructure: all can be used, promote their genitals, use it, rest or act and have more liquidity.”
Developers’ vision for V3 is to change Lido to a “open staking market,” the user can choose either staking setup that fits their purpose and profile of risk-a departure from departure from In Lido’s catch-all staking approach, where all users bet in the same way, through the same interface, in exchange for the same interest rate.
The shift brings lido to the line along with other modular decentralized financial products (DEFI), such as Morpho and symbiotic, which uses vault mechanisms for lending and restoration, respectively. Upgrade also makes Lido more useful for restoration -where ETH is “restaked” to secure other protocols in addition to Ethereum. “You can restore your stvault,” Lomashuk explained. “Liquid restoration of tokens can use this infrastructure to grow APR.”
The Lido V3 was formally displayed by a group of major developers in Lido Dao, the decentralized autonomous organization that manages the protocol, on Tuesday. If the DAO approved the proposal, the V3 could survive the Mainnet of Ethereum early in the third quarter of 2025.
“Now it’s a new phase,” Lomashuk told CoinDesk.
Read more: Lido co-founder teases ‘second foundation’ for Ethereum in the middle of community backlash
