Lido's Curated Module v2 Aims to Boost Ethereum Validator Efficiency
Lido, a leading liquid staking protocol for Ethereum, has announced an upgrade to its staking infrastructure. The upgrade, dubbed Curated Module v2, aims to improve validator efficiency while maintaining decentralization on the roadmap.
The new component brings support for Ethereum's 0x02 withdrawal credential format, allowing validators to operate with a larger effective balance of up to 2,048 ETH within Lido's staking framework. This can lead to fewer independent validator instances needed to steward a given amount of stake.
Lido projects that the upgrade could reduce Ethereum's validator count from approximately 880,000 to about 628,000, implying a roughly 33% reduction. However, it's essential to note that these numbers are based on internal projections and not yet realized outcomes.