The post Lido Goes Modular With Vault-Based ‘V3’ Upgrade appeared on BitcoinEthereumNews.com.

The developers behind Lido, the largest staking service on Ethereum, have proposed revamping the staking platform with modular “vaults.” The new framework would introduce stVaults, a customizable component designed to help Lido accommodate institutions and more complex staking strategies. Lido currently allows investors to pool their ether (ETH) together and “stake” their crypto — locking up their tokens with the network, helping to secure it in exchange for interest. Lido pioneered liquid staking: users get a receipt on their deposits called Lido staked ETH (stETH) that they can trade at any time. With liquid staking on Lido, entering and exiting staking positions became as simple as buying and selling stETH tokens. Lido V3’s stVaults are “modular smart contracts designed to meet the diverse and evolving needs of Ethereum participants,” according to a press release shared with CoinDesk. The upgrade would enable staking setups beyond cut-and-dry liquid staking. Specifically, stVaults will be able to 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 staking use cases. The move reflects the growing institutional interest in Ethereum staking as financial firms explore ways to integrate yield-generating crypto products into their portfolios. The stVaults are supposed to accommodate that interest by introducing modular building blocks that cater to different staking needs. “What is important to understand with customizable infrastructure, is that you can in general build even more complex products,” said Konstantin Lomashuk, the founder of the Lido staking protocol. The goal is “for Lido to be rebuilt as a foundation layer,” said Lomashuk.”It’s neutral infrastructure: everybody can use, stake their assets, utilize it, restake or leverage and have more liquidity.” The developers vision for V3 is to evolve Lido into an “open staking marketplace,”user will be…

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Filed under: News - @ February 11, 2025 9:23 pm