Lido rolls out Vaults and Earn products as staking yields tighten
Lido DAO has approved a $60 million operating budget for 2026 and laid out a strategy to expand beyond liquid staking into yield vaults, institutional wrappers, and what it describes as "realbusiness DeFi".
The roadmap, set out in the GOOSE3 governance proposal published Nov. 24, 2025, outlines four priorities: broadening stETH adoption, upgrading protocol infrastructure, scaling new revenue through Lido Earn, and building products that link off-chain corporate finance activity with on-chain liquidity.
Lido remains Ethereum's largest liquid staking provider, holding about 28–30% of all staked ETH. Total value locked has ranged from roughly $18 billion to $40 billion depending on market conditions. With more validators joining the network, staking yields have compressed, with base APRs now around 3–5%, down from higher levels in prior cycles. Lido governance cited that compression as a key driver for diversifying revenue.
Lido V3, including the stVaults product, went live on Ethereum mainnet on Jan. 30, 2026. The upgrade shifts Lido from a single-product staking model to a modular setup that allows institutional operators to tailor vaults to specific custody, compliance, or yield needs.
Two Lido Earn products—EarnETH and EarnUSD—are also live. The offerings use structured strategies with daily compounding and are aimed at both retail DeFi users and stablecoin holders seeking returns above base staking rates.
For 2026, the $60 million budget allocates $43.8 million to core operations and growth, with $16.2 million set aside as discretionary funding for high-impact initiatives such as liquidity incentives and institutional product development.
On infrastructure, the protocol plans to deliver Curated Module v2, Staking Router v3, and ValMart, a validator routing system designed to optimize performance, cost, and decentralization at the same time. Lido currently works with more than 683 unique node operators.
Institutional distribution is being pursued in parallel. VanEck filed an S-1 with the U.S. SEC on Oct. 20, 2025, for a Lido Staked ETH exchange-traded fund (ETF), the first U.S. ETF proposal to reference stETH directly. The filing remained pending as of March 2026.
In Europe, WisdomTree launched a Physical Lido Staked Ether ETP in December 2025. The product is 100% backed by stETH, listed on Xetra, SIX, and Euronext, and began with assets under management between $36 million and $50 million. Lido's participation in the Crypto Council for Innovation and the Proof of Stake Alliance has supported both initiatives.
GOOSE3 calls for additional ETF and ETP partnerships to package stETH and stVaults for traditional capital markets. The proposal's three-year vision positions staking as a steady core revenue line while Lido builds products for corporate treasury management, borrowing, and tokenized assets. Key 2026 KPIs include stVaults TVL, the revenue contribution from Lido Earn, ETF and ETP approvals, and early traction from "realbusiness" pilots.
FAQ
What is Lido's GOOSE3 proposal?
A governance plan detailing Lido DAO's 2026 strategy to expand beyond liquid staking into yield products and institutional DeFi infrastructure.
What is the Lido DAO 2026 budget?
$60 million, split between $43.8 million in baseline spending and $16.2 million in discretionary funds.
Is there a Lido stETH ETF in the United States?
VanEck filed an S-1 for a Lido Staked ETH ETF with the SEC on Oct. 20, 2025; the application remained under review as of March 2026.
What is Lido Earn?
A suite of structured yield products—including EarnETH and EarnUSD—designed to generate returns above base staking rates through daily compounding strategies.
