Lido Upgrades Protocol to Align with Ethereum's Evolving Validator Architecture
Lido Finance has rolled out its biggest Core protocol upgrade since introducing liquid staking in 2020. The overhaul introduces native support for Ethereum's 0x02 validator architecture following the Pectra upgrade.
The update enables validator consolidations, which could reduce Ethereum's validator count by nearly one-third, from roughly 880,000 to about 628,000. Validator consolidations would allow validators to secure larger shares of ETH and increase consensus-layer communication efficiency.
Lido has also expanded its Community Staking Module, introducing a new category for operators using Distributed Validator Technology (DVT). This change allows groups of independent operators to participate under lower capital requirements while adding new reward distribution tools and governance improvements.