Lido introduces V2 — modularization and stETH withdrawals

Lido is launching Lido V2, a new version of its protocol that moves the needle forward in decentralization. Key updates include a new Staking Router which allows anyone to develop on-ramps for new Node Operators, as well as Withdrawal functionality for stETH stakers at a 1:1 ratio.

Staking router upgrade

The Staking Router upgrade will modularize the protocol by essentially treating the various modules as sets of validator pools that can act as potential supply for the protocol.

Stakers benefit from a more diverse and secure Node Operator set, as their deposits will be distributed over a much greater number of independent entities, mitigating network-downtime risk and improving Ethereum’s resiliency.

Node Operators like solo stakers and professional node operators will be able to increase their avenues of participating in the Lido protocol.

stETH withdrawals

Withdrawals will enable users to unstake their stETH and, in return, receive ETH at a 1:1 ratio for their staked ETH — this will be allowed by the upcoming Ethereum Shanghai upgrade.

Due to the asynchronous nature of Ethereum withdrawals, withdrawals are proposed to function via a Request/Claim process.