Staking Modules Updates

Curated Module

Curated Module v2 Migration

Curated Module v2 (CMv2) is a new module expected to be included into Lido Core if supported by the Lido DAO. Bringing 0x02 validators to the protocol, this will allow to keep the Lido protocol fully aligned with Ethereum’s long-term scaling roadmap and evolving validator architecture, helping ensure a resilient and future-proof staking set-up.

An early heads-up has already been shared with Curated Node Operators. To prepare for the migration at this early stage, operators are asked to:

• Have ~25 Hoodi ETH available for the testnet bond
• Share the address(es) you plan to use to create your sub-operators

On Timing

The first migrations on the Hoodi testnet are expected to begin in the second week of March. To support a smooth transition, Lido contributors will publish a detailed migration guide in February, giving operators ample time to familiarize themselves with new features and the consolidations interface well ahead of mainnet.

Mainnet migration is currently expected in Q2 2026. Given validator entry queue dynamics — even with early seeding of new validators to accelerate the process — the full migration is expected to take approximately six months.

Protocol Costs for 0x02

Supporting 0x02 validators set-up and migrating the Curated Module is technically complex and operationally costly for the protocol. This represents what can be described as a decentralization premium, the additional operational and financial overhead required to support Ethereum’s evolving validator primitives while migrating nearly 90% of the protocol’s staked ETH in a way that preserves safety.

The Research Forum post breaks down the financial implications and operational constraints associated with this migration. Community feedback is essential in shaping the approach to balance decentralization, sustainability, and long-term protocol health.

Understanding Protocol Costs for 0x02 and the CMv2 Migration

Over the past months, several teams across Lido have been analyzing what it will require to migrate and consolidate the Curated Module from its legacy architecture (CMv1) into CMv2, which will support 0x02 validators. This is, in part, due to the required evolution of Lido’s largest module to an efficient and mostly autonomous state, but also in order to support the Ethereum network’s roadmap. This post summarizes the financial implications we’ve analyzed of this migration, the expected operati...

research.lido.fi

Community Staking Module

Stronger Decentralization for Lido Core

Following LDO tokenholder approval via on-chain Vote #198 and the successful completion of the Dual Governance review, the Community Staking Module’s stakeShareLimit was increased to 7.5%, while the priority exit threshold — the TVL share at which CSM is prioritized for exits to fulfill withdrawals — was raised to 9%. Together, these changes further strengthen Lido decentralization by expanding the role of permissionless validators within Lido Core.

Round Three ICS Application Results

Since its introduction alongside the CSM v2 upgrade, the Identified Community Staker (ICS) framework has continued to gain strong traction, with 498 applications evaluated and 363 approvals to date.

On January 22, the third ICS application review round concluded. This additional round was held shortly after the conclusion of Round #2 to enable more independent stakers to join the CSM and to provide another opportunity for operators who narrowly missed qualifying in the previous round ahead of the increase in the module’s stake share limit to 7.5% in January.

As a result, 18 additional Node Operators qualified for ICS status. Applicants can check their results via CSM interface:

• eligible operators may claim their ICS operator type directly in the UI,
• new operators will have the ICS type assigned automatically upon creating their operator profile.

If you're an independent staker and haven’t applied yet, there’s still plenty of time to submit your application! Applications will remain open, with another review round expected in late Q1 or early Q2 — stay tuned for updates on the exact timeline.

Your CSM Journey in 2025 Wrapped

Spent the year running validators as a CSM operator in the Lido first permissionless module? Take a look back at your journey with CSM Wrapped 2025 at csm.lido.fi/wrapped-2025.

Share your stats with the CSM community on X or Discord:

• How many days did you validate in 2025?
• How many keys did you upload?
• How many blocks did you propose?
• How much ETH did you earn?
• And don’t be shy to share your average performance!

Here’s to validating with CSM in 2026 and continuing to build a permissionless decentralized Ethereum together

Simple DVT Module

Following the operator rotations that took place in January, several clusters are currently operating below full allocation and are steadily activating new validators.

Node Operator Community

Lido V3 & stVaults Fully Launched

Lido V3 Is Live: Modular Infrastructure for a New Paradigm of Ethereum Staking

Lido V3 is live on Ethereum mainnet, introducing stVaults: modular staking infrastructure for builders, powered by stETH.

blog.lido.fi

For stVaults Builders

Start building on Lido V3 today via the stVaults Documentation Center. For a deeper dive into core concepts — including Reserve Ratios, minting limits, and risk tiers — see the Lido V3 Whitepaper.

The stVaults onboarding process is permanently open. Node Operators can submit identification requests by following the stVaults Node Operators Identification guide.

Teams building institutional staking products, operator-led offerings, structured DeFi vaults, or L2-native staking integrations are highly encouraged to get in touch with the stVaults contributors:

Contact the stVaults team

tally.so

To support early adopters amid a long Ethereum’s validator entry queue, the stVaults Lido Infrastructure fee is reduced from 1% to 0% until March 31, 2026. This applies to identified vaults with a Total Value exceeding 250 ETH. Full details are available here.

DVT & DVV Incentive Allocation Changes

LDO tokenholders supported the proposal introducing a variable incentive allocation model for DVT-related incentives accrued to the Lido protocol and split between Node Operators and the Mellow Distributed Validator Vault (DVV), replacing the previously fixed allocation. This model is designed to better reflect the real and evolving costs of operating DVT-based validators under current market conditions.

By aligning incentives more closely with actual operating costs, the new mechanism supports sustainable Node Operator economics, helping ensure that running DVT validators remains viable for a broader set of Lido operators. In turn, this strengthens Lido’s contribution to Ethereum resilience and advances network’s decentralization through more robust, cost-aware DVT adoption.