Lido Proposes Evolution Into Broad-Based DeFi Platform, Outlines Four Strategic Goals For 2026
In Brief
Lido has proposed to evolve into a broader DeFi platform, outlining four goals—expanding staking, strengthening resilience, scaling DAO revenue, and pursuing real-world financial integration.
Decentralized finance (DeFi) platform Lido released a new proposal that details its strategic objectives for 2026 and requests approval from the DAO to transition the protocol from its current role as “Ethereum’s staking middleware” into a more expansive DeFi platform designed to support both crypto-native participants and businesses operating in traditional markets.
Growth in Ethereum staking has moderated this year, with total staking increasing by approximately 5% year-to-date compared to 18% in the previous year, while liquid staking has stabilized at about 47% of all staked ETH. Lido’s position in the ecosystem is described as holding roughly 24.1% of all staked ETH and around 50.8% of liquid staking activity.
Lido characterizes its original mission as largely fulfilled, emphasizing the absence of security incidents with financial consequences since launch, the presence of 683 active node operators, the availability of permissionless CSM, the implementation of Simple DVT, and the activation of Dual Governance for stETH holders.
Additional progress referenced in the proposal includes improvements associated with CSM v2, the Simple DVT module, the introduction of triggerable withdrawals aligned with the Pectra upgrade, updates to curated module operator classification and fee structures, and continued development of V3 stVaults.
With the core staking objectives viewed as essentially complete, the remaining technical tasks such as CMv2 and SRv3/ValMart are described as incremental in nature, allowing the DAO to redirect attention from foundational engineering efforts toward expanding products and strengthening its partner ecosystem.
Lido 2026 Roadmap: Expanding Staking, Reinforcing Resilience, Scaling DAO Revenues, And Driving Real-World Finance Integration
For the 2026 cycle, the proposal outlines four overarching objectives that define the next stage of development: expanding the staking ecosystem, strengthening protocol resilience through a Lido Core upgrade, scaling new DAO revenue channels under the Lido Earn initiative, and exploring vertical expansion along with applications relevant to real-world businesses.
The first objective focuses on broadening the staking ecosystem. With the introduction of Lido V3, stVaults are positioned as modular staking infrastructure intended for integrators, node operators, custodians, and large-scale allocators. The proposal identifies targets such as reaching one million ETH staked through stVaults by the end of 2026 and enabling institutional wrappers built around stETH, including exchange-traded products (ETPs), exchange-traded funds (ETFs), and other structured instruments.
The second objective centers on the resilience of the protocol through a Lido Core upgrade. Curated Module v2 and Staking Router v3 introduce ValMart, a validator marketplace designed to allocate stake according to performance, cost efficiency, and decentralization metrics. This system transitions stake distribution toward a market-based model aimed at increasing DAO revenue, reinforcing risk controls, and maintaining decentralization as the system scales.
The third objective involves expanding the DAO’s revenue sources through Lido Earn, which launched in 2025. Lido Earn provides various vaults directed at DeFi power users, restakers, stablecoin-oriented users, passive participants, and onchain treasury managers. The stated goal is to develop Lido Earn into a diversified suite of products capable of generating additional revenue for the DAO.
The fourth objective explores vertical expansion and real-world financial applications. The proposal describes a dual-track approach consisting of smaller experimental initiatives involving integration middleware, real-world business access to DeFi, and new entry points for Lido products, accompanied by a single high-conviction pursuit of a major opportunity within real-world finance once the appropriate angle and timing have been identified.
A parallel track focuses on LDO alignment under the GOOSE-2 initiative, implemented through the NEST system. NEST is intended to leverage DAO revenue, denominated in stETH, to repurchase LDO on secondary markets, thereby linking token performance with protocol performance. The underlying technical components are under development, and the framework is currently open for discussion.
The proposal also outlines a three-year vision that treats staking as a mature and profitable business line rather than the sole focus of the protocol. It describes plans for vertical growth to capture additional value and strengthen user engagement, horizontal expansion into stablecoins and other asset categories, and positioning Lido as a primary gateway for real-world capital engaging with onchain treasury and financing use cases.
Throughout these plans, the document reaffirms the core principles that guide decision-making: prioritizing security and resilience, maintaining measurable outcomes and cost discipline, validating initiatives iteratively by scaling effective solutions and discontinuing ineffective ones, and enforcing clear risk parameters to ensure that new ventures never compromise the guarantees provided by the core protocol.
Voting and discussion on the proposal are currently open.
The protocol’s initial mission of establishing and decentralizing a leading liquid staking system is presented as complete, setting the stage for using this foundation to pursue broader growth.
According to the proposal, the current landscape presents a larger opportunity that extends beyond Ethereum staking toward new products, asset types, and avenues for value creation. In this framework, staking becomes the foundational layer from which further vertical and horizontal expansion can occur.
According to Lido, the next phase is grounded in the same principles of security, resilience, and pragmatic development that have defined the protocol so far, aiming to guide its evolution and maintain its position within DeFi in the years ahead.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
