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Alisa Davidson
Published: July 10, 2025 at 10:17 am Updated: July 10, 2025 at 10:17 am
Edited and fact-checked:
July 10, 2025 at 10:17 am
In Brief
Lido has launched V3 of its Ethereum-based liquid staking protocol on the Holesky testnet, introducing a modular, institution-grade staking infrastructure with full mainnet deployment scheduled for October 2025.
Ethereum-based liquid staking protocol Lido announced that its latest iteration, Lido V3, is now operational on the Ethereum Holesky testnet, with the mainnet rollout planned for October 2025. The updated version enables institutions, node operators, and asset managers to begin constructing and launching vaults, engage in the collaborative design of staking strategies, choose validator partners, and establish tailored liquidity and redemption mechanisms.
Lido V3 represents a structural evolution of the protocol, transitioning it from a liquid staking product into a modular, transparent, and infrastructure-oriented platform designed to meet the standards of institutional staking operations.
Lido V3: What Is It?
Lido V3 represents an advancement in Ethereum’s staking architecture, integrating elements of decentralization, liquidity, and configurability. Functioning as staking middleware, Lido abstracts Ethereum’s validator infrastructure into an accessible interface that allows ETH holders to delegate their assets to a global network of node operators. This delegation occurs without permission constraints and accommodates any stake size, offering participants the ability to contribute to Ethereum’s security without forfeiting liquidity or optionality.
The latest version introduces two separate components. The first, Lido Core, continues to support stETH issuance and distributed staking via over 600 node operators. The second, stVaults, establishes a flexible staking layer designed to accommodate various use cases, including institutional needs, yield optimization strategies, and neutrality-focused preferences. Each stVault retains the capacity to mint stETH, ensuring immediate liquidity access.
stVaults provide a modular framework, allowing users to determine their preferred node operators, select between custodial and non-custodial configurations, decide whether to mint stETH, and customize both reward distribution and validator logic. Additional services, such as MEV strategy implementation and pre-confirmation mechanisms, are also available as optional enhancements.
The introduction of vaults aims to remove opacity from institutional staking processes. Validator selection becomes publicly visible, the financial dynamics of node operation are fully auditable, on-chain tracking of rewards is available, and liquidity is embedded directly into the system. Transparency is intentionally embedded in the protocol’s structure.
With Lido V3, Ethereum benefits from more decentralized staking flows. While the majority of current stake remains with curated operators, new stake allocations are directed through Distributed Validator Technology (DVT) and Custom Staking Module (CSM) frameworks. This approach is designed to gradually redistribute the validator set, improving network resilience and fostering broader geographic distribution.
Lido Finance operates as a decentralized finance protocol with a focus on liquid staking, offering a mechanism through which users can stake any quantity of ETH while receiving a corresponding tokenized asset, known as stETH. This derivative accrues staking rewards and remains tradable, allowing it to be utilized across various DeFi applications including lending, trading, and yield-generating strategies.
Recently, the decentralized autonomous organization responsible for the governance of Lido, Lido DAO, implemented a feature referred to as Dual Governance on the Ethereum mainnet. This governance enhancement introduces a framework aimed at reinforcing on-chain user protections for participants who stake through Lido.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
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