Crypto
Lido V3 Tackles Validator Concentration with stVaults
Lido V3 has introduced stVaults to balance control and liquidity for validators. This allows stakers to have more control over validator selection and fee terms while minting stETH.
The protocol maintains stETH liquidity by using an overcollateralized minting model where a portion of the stake remains as a reserve. This structure prevents the total stETH supply from exceeding the underlying staked ETH.
Lido V3 enables institutions to deploy segregated vaults with dedicated validator infrastructure, allowing them to stake ETH across multiple operators with on-demand stETH liquidity.