In recent hours, the price of Lido rose following a significant upgrade. Lido, the leading liquid staking protocol, released Lido v3, an update aimed at providing increased flexibility and composability for institutional Ethereum stakers.
Lido V3 and stVaults
Lido, an Ethereum staking solution, announced that its latest version, Lido v3, is set to launch this summer. The upcoming Lido v3 will feature 'stVaults,' modular smart contracts that enhance the flexibility of its liquid staking framework. These vaults will allow users to implement sophisticated staking strategies using Lido’s stETH token. A primary function of the stVaults includes tailored staking configurations for institutional users, which support compliance requirements and offer operational control. This includes customized validator options and precise deposit and withdrawal procedures.
Trump Administration's Impact on Staking
A Trump administration is expected to be more supportive of cryptocurrency industry innovations, including the launch of the first staked Ether exchange-traded fund (ETF). Bernstein Research anticipates that under a 'new Trump 2.0 crypto-friendly' Securities and Exchange Commission, Ether ETFs will soon include staking yields. In January, World Liberty Financial (WLFI), a DeFi platform associated with the Trump family, deposited 10,000 ether into Lido Finance for staking, raising hopes that staking for spot ETH ETFs might soon be approved.
Changes in Ethereum and Lido
Lido dominates the liquid staking market as the largest protocol, securing over $25.5 billion in total value locked (TVL), representing more than 50% of Ethereum's liquid staking sector. However, Ethereum has faced criticism due to its declining prices compared to competitors, leadership conflicts, and concerns about its development roadmap. ETH's value recently fell to a four-year low against Bitcoin and lost trading activity market share to fast-expanding blockchains like Solana.
The Lido v3 update aims to meet the growing interest from institutions in Ethereum staking. As the largest liquid staking protocol, Lido enables users to implement more sophisticated strategies and contributes to the development of the Ethereum ecosystem.
