Lido Finance Publishes V3 Whitepaper, May Launch New ETH Staking Model

• Lido V3 Whitepaper Introduces Innovative StVault Concept
• Lido Finance invites community to participate with technical feedback
• New staking model promises more flexible risk management

Lido Finance has released a draft whitepaper for version 3 of its Ethereum staking protocol, proposing important changes focused on customization and decentralization. The publication marks the beginning of a public consultation period, during which the community is encouraged to submit comments and suggestions ahead of the final launch, scheduled for February 2025.

One of the main highlights of the whitepaper is the introduction of the so-called stVaults, isolated and non-custodial staking structures. According to the developers, stVaults aim to allow greater customization in staking strategies, with a focus on modularity and risk management. The proposal is to allow validators and participants to create solutions adapted to their operational needs and risk tolerance, keeping liquidity separate from the staking operation.

Lido V3 Testnet is here

Starting today, builders can create tailored staking solutions using Lido stVaults on the Hoodi Ethereum Testnet. https://t.co/rJ3qSuuaA6

↓ pic.twitter.com/9zvUBmWdk7

— Lido (@LidoFinance) April 28, 2025

According to pshe.eth, the protocol’s developer, “stVaults are expected to become highly composable building blocks for institutional strategies, protocols, and products.” The move reflects a growing movement within the DeFi space toward more flexible and integratable solutions for the Ethereum ecosystem.

Opening up to public suggestions signals Lido’s effort to maintain open and decentralized governance. The collaborative approach seeks to strengthen trust between users and developers, valuing the active participation of the community in improving the protocol.

With Lido V2, which was previously launched, the focus was on increasing decentralization. Now, V3 aims to make a technical leap forward, expanding users’ ability to shape their staking strategies with greater autonomy. These changes could directly impact the DeFi sector, especially protocols that rely on liquid staking as a basis for liquidity and yield generation.