Lido v3 White Paper Seeks Public Feedback: stVaults Reshapes Ethereum Stake for Large Institutions

Lido recently released the draft of the v3 white paper for comments (RFC), the core of which is the "stVaults" innovative architecture, designing a separation of staking strategy and liquidity layer, and providing institutions with a highly "customized" Ethereum staking experience. (Synopsis: 1.4 Behind the ETH theft: Lido security teaches the crypto industry a lesson) (Background supplement: Give stETH holders "decision veto"!) Lido's New Proposal or Refactoring DeFi Governance Power Architecture Lido, the leader in the Ethereum staking market, recently released an exposure draft (RFC) of its Lido v3 whitepaper, the most notable innovation being a new architecture called "stVaults." The core goal of stVaults design is to decouple staking methods (such as node operator selection, fee structure, risk appetite, etc.) from the stETH liquidity layer. Provide users with unprecedented customized staking options while maintaining Lido's stETH liquidity. Decoupling: A simple explanation for non-engineers that increases the commonality of a piece of code (or a module) with other codes or modules. For example, different electrical appliances can use a common power plug. stVaults: Modular Design and Risk Management According to the stVaults design document, the architecture uses a hierarchical structure to ensure protocol security and provide design flexibility without affecting the stability of the Lido core protocol. stVaults will serve as a highly composable building block that is expected to lead to a greater diversity of staking strategies, protocols, and institutional-grade products. Risk management is key to the design of stVaults. For example, by introducing mechanisms such as reserveRatio (RR), a 30% RR means that only 70 stETH can be minted for 100 ETH in the vault, Lido limits the potential slashing risk to each vault and ensures that stETH remains 1:1 redeemable with ETH, as described in the white paper RFC. Other mechanisms such as forcedRebalanceThreshold and shareLimit will also work together. What is the potential of V3? stVaults is designed with a particular focus on institutional-grade applications, allowing direct selection of validators and providing optional liquidity access, which is particularly attractive for staking ETFs and structured products. Currently, Lido has launched the V3 testnet on the Holesky testnet for developers to test stVaults and create custom staking solutions. Lido DAO will ensure the governance and security of this new architecture through dual governance and a multi-signature oracle system, and Lido is actively seeking community reactions to the stVaults design and risk management model, especially in balancing stETH risk, redeemability and staker node selection, and inviting the outside world to refine the final design, discuss or give opinions, see the official forum. Related reports Ark Investment raises bitcoin target price: $2.4 million in 2030, institutional influx becomes a key driver Vitalik new proposal to expand Ethereum: Gas Limit reduces node demand and creates some stateless nodes (Lido v3 white paper solicits public comments: stVaults reinvents Ethereum staking for large institutions) This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".