Lido Finance has launched its v3 update on Ethereum, introducing a modular infrastructure for stVaults that enhances staking flexibility.
Lido Finance has officially launched its v3 update on the Ethereum mainnet, featuring a new modular infrastructure for stVaults based on stETH. This development aims to enhance staking flexibility for different market players.
“Lido V3 is live on Ethereum mainnet, introducing stVaults: Modular staking infrastructure for builders, powered by stETH,” Lido announced on Twitter.
This innovative solution merges individual staking advantages with Lido's liquidity capabilities and network integrations. As detailed by the developers, participants can tailor critical parameters like operator selection, policies, fees, and reward structures while retaining liquidity access via stETH.
Key features of the update include:
- For institutions: Custom vaults using trusted validators and optional stETH liquidity.
- For node operators: A shift from standard delegated staking, allowing for unique offerings with varied fees and rates.
- For developers: A DeFi Wrapper tool to build pools incorporating yield strategies, such as cyclical staking and market-neutral models.
- For Layer 2 protocols: Transforming users' locked ETH into productive assets.
These use cases leverage a common layer via stETH, facilitating compatibility and shared liquidity within the DeFi ecosystem on Ethereum. Lido's team had previously announced the v3 update in February 2025, and it has since undergone extensive testing and audits.
It's notable that Lido reduced its workforce by around 15% in August 2025, following a decrease in its market share of the ETH staking segment to 25%.
