- Lido DAO’s V3 rollout is now in its third phase, allowing any node operator to generate sETH across all stVaults.
- It also adds four new tiers for the identified node operators, each with its own reserve ratios and coin limits.
Lido DAO has announced the rollout of the third version of its protocol, V3, which democratizes stETH coin creation across all stVaults. The DAO stated that sETH minting is now permissionless for all stVaults and the minting limit for all identified node operators has been extended.
Lido V3 Phase 3 is live!
sETH creation is now permissionless for all stVaults and the coin creation limit for Identified Node Operators has been extended.
The initial rollout of Lido V3 has been completed
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— Lido (@LidoFinance) March 2, 2026
steTH is the token that users who staked Ethereum via Lido receive. It provides staking rewards from the Ethereum network and can be used on DeFi platforms while keeping the staked Ethereum locked. stVaults Lido’s new stake safe model, introduced in V3. It lets node operators run individual vaults with their own reserves and coin limits, rather than a single large pooled staking system.
Under the latest protocol version, even unidentified node operators can withdraw sETH from their stVaults. However, they must maintain a reserve ratio of at least 50%, which limits coin capacity so that the network can absorb losses and maintain control over liquidity risk.
Additionally, the maximum number of tokens they can earn is set at 5,000 stETH (approximately $10 million) per vault in the standard tier, which includes the unidentified nodes in v3.
For comparison, the lowest level for identified node operators has a reserve ratio of 5% and the minting limit is set at 47,500 stETH. These higher limits are intended to encourage node operators to identify themselves.
Lido’s V3 offers more choice for node operators
V3 also comes with four new levels for identified node operators with higher minting limits, “allowing for more granular configuration based on the assigned category.”
At the basic level, the lowest level has a limit of 47,500 steTH, while the highest level has a reserve ratio of 20% and a limit of 320,000 steTH. The other new tiers are the stVault Professional Operator, the stVault Professional Trusted Operator, and the DVT Cluster.
While node operators can request to be placed in any category, the stVault Professional Trusted Operator category is reserved for those with a successful three-month validation and who can prove they have “a significant amount of potential funds to acquire.”
Image courtesy of Lido Finance.
Lido further announced that all vaults will be managed by identified node operators numbering at least 250 $ETH a 0% fee until March 31. It added that it may consider an extension depending on the length of the queue.
Lido continues to dominate the Ethereum staking sector, as CNF has previously reported. According to Dune Analytics, the company has 8.675 million shares $ETHgood for a market share of 23%, the highest in the sector.