Lido Unveils Overhauled Staking Module with Bonded Validators
Lido, the largest Ethereum staking protocol by total value locked, has launched Curated Module v2 (CMv2), a major overhaul of its main staking module. This upgrade requires professional node operators to post bonds with their own capital, marking a shift in accountability from reputation-based models.
The CMv2 migration is expected to consolidate over 8 million staked ETH, worth approximately $16.5 billion, onto a smaller set of validators. Lido estimates that this will reduce the total validator count by about one-third, trimming attestation messages across the network and easing load on the consensus layer.
The Curated Module secures around 90% of the staked ETH in Lido Core, with operators posting bonds to back their stakes. These bonds can be slashed under a new penalty framework to compensate stakers for validator slashing events or extended downtime.