Executive Summary
Lido V3 resolves the fundamental control-versus-liquidity dilemma in Ethereum staking through stVaults — isolated staking positions that give users control over validator choice, fee terms, and infrastructure, while retaining access to stETH liquidity.
stVaults are non-custodial smart contracts that delegate ETH to chosen Node Operators while maintaining withdrawal credentials control. Stakers define key parameters: fees, MEV, sidecars, custody, insurance, and more.
Key Concepts
stVaults
Isolated staking positions enabling user-defined validator setups with optional stETH minting. Modular, sovereign building blocks for the staking economy.
stETH Liquidity Layer
Two ways to mint stETH: Core Pool (1:1 ratio) and stVaults (overcollateralized). Maintains fungibility while enabling diverse staking setups.
Overcollateralization
Part of the stake is held back to mitigate slashing risk and preserve stETH fungibility. Health Factor and Reserve Ratio ensure protocol stability.
Sovereignty
Stakers retain a full exit path — similar in spirit to Dual Governance — and can freely disconnect and, if necessary, ossify their stVault to opt out of upgrades.
Supported Use Cases
The stVault architecture enables a wide range of staking strategies:
| Use Case | Description |
|---|---|
| Delegation Liquid Staking | Node Operators attract stake directly and launch their own stVaults with stETH liquidity |
| Custom Staking Strategies & LRTs | Build custom portfolios, integrate restaking (Symbiotic), wrap stVaults (Mellow) |
| Leverage Staking | Mint stETH, borrow more ETH, stake again — capital-efficient loops |
| Institutional Staking | ETFs, ETPs, custodians maintain validator control without idle liquidity buffers |
Quick Links
Full Technical Paper
The complete Lido V3 Technical Paper covers architecture, mechanisms, risks, and implementation details.
Lido V3 Technical Paper
Complete technical specification including stVaults architecture, fee mechanisms, risk framework, and user flows
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Document Contents
The technical paper includes the following sections:
- Introduction — The control vs. liquidity dilemma in Ethereum staking
- stETH as the Liquidity Layer — How Core Pool and stVaults link up
- stVaults — Architecture, anatomy, shared layers, minting mechanics, fees, and sovereignty
- Core Pool — Current state, anchoring role, and strengthening measures
- Known Risks — Smart contract complexity, governance, slashing, liquidity, and oracle risks
- Appendix A — User flows for opening positions, closing positions, and rebalancing
- Appendix B — Risk Assessment Framework for evaluating validator risks
Related Documentation
For implementation guides and technical details, see:
- stVaults Doc Center — Building guides and knowledge base
- stVaults Integration Overview — Technical integration details
- Deployed Contracts — Production and testnet contract addresses
- Predeposit Guarantee (PDG) — Validator deposit security mechanism