A shift away from one-size-fits-all staking

Ethereum staking has largely operated on a pooled model. Users deposit ETH, validators are selected by the protocol, and rewards are distributed under a shared rule set. This approach simplified staking but limited flexibility.

Lido’s new stVaults change that model.

Instead of forcing every participant into the same pool, stVaults allow external teams to define how staking works for their own use cases while still relying on Lido’s core infrastructure.

This marks a move toward modular staking rather than a single global configuration.

What stVaults actually are

stVaults are customizable staking environments built on top of Lido’s staking system. They allow projects to plug into Lido’s validator and liquidity framework while defining their own rules.

Teams can control elements such as:

• validator selection and operator requirements
• reward distribution logic
• fee structures
• governance and policy constraints

Despite this customization, vaults can still interact with the broader Ethereum ecosystem through liquid staking mechanics.

Why this matters for layer-2 networks

Layer-2 networks increasingly want staking to serve their own ecosystem goals. That might include directing rewards toward network incentives, aligning validator behavior with rollup security assumptions, or integrating staking more tightly with bridging and sequencing.

Previously, doing this required building and maintaining a full staking stack.

With stVaults, an L2 can define its staking logic and deploy it on top of an existing, battle-tested system. This reduces engineering effort, shortens time to market, and avoids fragmenting liquidity.

Lower friction for builders and institutions

Beyond L2s, stVaults also appeal to institutions and infrastructure providers.

Building a staking product from scratch involves smart contracts, validator management, security audits, liquidity bootstrapping, and long-term maintenance. stVaults remove much of that overhead.

Teams can focus on policy and product design rather than plumbing. That makes it easier to experiment with staking models that emphasize compliance, risk control, or yield optimization.

Liquidity without fragmentation

One of the biggest challenges in Ethereum staking is liquidity fragmentation. When every protocol launches its own staking token, liquidity spreads thin and composability suffers.

stVaults aim to avoid that outcome.

Custom staking logic can coexist while still benefiting from shared liquidity and existing DeFi integrations. This preserves composability while allowing specialization.

It is a middle ground between fully pooled staking and fully isolated staking systems.

What this signals for Ethereum staking

stVaults reflect a broader trend in Ethereum infrastructure. Core protocols are becoming modular platforms rather than monolithic systems.

Instead of dictating a single way to stake, Lido is positioning itself as a base layer that others can build on. That approach mirrors what has already happened in DeFi, rollups, and application development.

If widely adopted, stVaults could reshape how staking products are designed, especially for networks and institutions that need more control without sacrificing security or liquidity.