The developers behind Lido, the largest staking service on Ethereum, have proposed revamping the staking platform with modular “vaults.”

The new framework would introduce stVaults, a customizable component designed to help Lido accommodate institutions and more complex staking strategies.

Lido currently allows investors to pool their ether (ETH) together and “stake” their crypto — locking up their tokens with the network, helping to secure it in exchange for interest.

Lido pioneered liquid staking: users get a receipt on their deposits called Lido staked ETH (stETH) that they can trade at any time. With liquid staking on Lido, entering and exiting staking positions became as simple as buying and selling stETH tokens.

Lido V3’s stVaults are “modular smart contracts designed to meet the diverse and evolving needs of Ethereum participants,” according to a press release shared with CoinDesk. The upgrade would enable staking setups beyond cut-and-dry liquid staking.

Specifically, stVaults will be able to help institutional stakers who want to personalize their staking setups, node operators who want to attract high-volume stakers, and asset managers who want to create new staking use cases.

The move reflects the growing institutional interest in Ethereum staking as financial firms explore ways to integrate yiel

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Author: Margaux Nijkerk