Lido V2 vs Lido V3

Lido V3 is a major architectural upgrade to the Lido protocol, introducing a more modular, flexible, and programmable staking system compared to Lido V2.
While Lido V2 focused on improving withdrawals and decentralizing the node operator set, Lido V3 focuses on asset segregation and flexibility that can power new staking products, institutional vaults, and advanced delegation strategies.

Here are the key differences:

1. Staking Vaults vs Lido Core Pool

In V2, all ETH deposits go into the same shared pool. In V3, deposits can be directed into independent stVaults, each with its own configuration, operator sets, and permissions.

2. Customizable Node Operations

While Lido Core's set of node operators is indeed diversified, it is also imposed to all participants in the protocol.

Lido V3 allows each stVault to have its own node operator or set of node operators, enabling:

• operator and client customization
• specialized MEV strategies
• vault-specific fees.

3. Self-Sovereignity

One of the most significant changes in Lido V3 is that stVaults are self-sovereign.
Unlike V2’s single global pool—where every participant is bound to the same protocol updates—each vault in V3 can disconnect from the Lido ecosystem and therefore opt-out of undesired protocol upgrades.

4.Granular Governance

V3 also introduces vault-level governance. Instead of governance affecting the entire protocol, users can assign roles for each smart contract method. This granularity allows organizations to operate vaults in a way that fits their processes and operations.