"Lido Unveils v3: Modular 'tVaults' Boost Institutional Ethereum Staking"

Lido, the leading liquid staking protocol, has recently unveiled a significant upgrade, Lido v3, which introduces modular 'tVaults' to enhance institutional and strategic Ethereum staking. This upgrade is expected to provide increased flexibility and composability for institutional Ethereum stakers, marking a major step towards Ethereum staking as the US awaits staked ETH ETF approval.

Lido v3 Introduces stVaults

Lido, an Ethereum staking solution, has announced the launch of Lido v3 this summer, featuring 'tVaults' - modular smart contracts that enhance the flexibility of its liquid staking framework. These vaults will enable users to implement sophisticated staking strategies using Lido’s stETH token.

The primary function of the stVaults is to provide tailored staking configurations for institutional users, supporting compliance requirements and offering operational control. This includes customized validator options and precise deposit and withdrawal procedures.

This initiative reflects the growing interest from institutions in Ethereum staking as financial firms plan to incorporate yield-generating crypto products into their portfolios. The stVaults aim to meet this demand by offering modular components that address various staking requirements.

The team behind Lido believes that such customization could enhance validator diversity, which would, in turn, improve network security and trigger competition among validators to deliver superior performance.

Lido currently dominates the liquid staking market, securing over $25.5 billion in total value locked (TVL), which represents more than 50% of Ethereum’s liquid staking sector, according to DefiLlama data.

Following Donald Trump's 2024 US presidential election victory, there has been an increase in interest from institutions in Ethereum staking products. This is partly due to expectations that his administration will be more supportive of cryptocurrency over the next four years.

A Trump administration is expected to be more supportive of cryptocurrency industry innovations, including the launch of the first staked Ether exchange-traded fund (ETF). Bernstein Research anticipates that under a “new Trump 2.0 crypto-friendly” Securities and Exchange Commission, Ether ETFs will soon include staking yields.

In January, World Liberty Financial (WLFI), a DeFi platform associated with the Trump family, deposited 10,0