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New version of liquid staking provider Lido Finance

On February 7, the popular Ethereum staking provider Lido Finance released its new protocol version, V2. The latest version of the staking protocol aims to be more open, accessible, and decentralized.

By Luc Vesters
• 2 min read
New version of liquid staking provider Lido Finance

On February 7, the popular Ethereum staking provider Lido Finance released its new protocol version, V2. The latest version of the staking protocol aims to be more open, accessible, and decentralized.

Lido V2 is expected to go live in March next year with the successful implementation of Ethereum's Shanghai upgrade. With the new version, investors will be able to withdraw their stake plus earned staking rewards from the second-largest blockchain. These rewards are currently locked up behind a gate.

For Lido, this means users will be able to redeem their staking rewards in ETH after the upgrade. Until now, this hasn’t been possible. The “yield” was issued in the form of stETH, an Ether replica owned by the platform. Additionally, it should become possible for individual stakers to become node operators for Ethereum within the Lido system. The goal is to achieve more variation among validators, they say.

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