Key Takeaways:
- Lido shifts from count-based to balance-based accounting in Staking Router v3
- Validator cap rises to 2,048 ETH, enabling 64x consolidation per EIP-7251
- Mainnet deployment targeted for July 2026 after audits and community vote
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Lido Staking Router v3 lifts validator cap to 2,048 ETH post-Pectra
Lido Finance on June 3 released Staking Router v3, shifting to balance-based accounting and raising the validator cap to 2,048 ETH.
"The upgrade introduces balance-based accounting and a TopUpGateway secured by on-chain Merkle proofs, replacing a system built for the 32 ETH era," the Lido development team said in the LIP-35 specification.
The new accounting method tracks actual ETH balances rather than treating each validator as identical, directly affecting how totalPooledEther — the variable determining the stETH exchange rate — is calculated. A TopUpGateway handles predeposits and top-ups using on-chain Merkle proofs, removing the need for a trusted intermediary. A deposit reserve will buffer ETH during module migrations. The upgrade follows Ethereum's Pectra hard fork, which introduced EIP-7251 and raised the maximum validator effective balance from 32 ETH to 2,048 ETH. Lido's existing count-based infrastructure could not accommodate the new flexibility without a rearchitecture.
A Snapshot vote is scheduled for late June, with audits expected to wrap up by early July. Mainnet deployment is tentatively penciled in for July 2026, assuming the vote passes and no critical issues emerge. The multi-phase consolidation pipeline, enabling stake migration between Curated Module v1 and v2, is expected to extend through approximately Q1 2027.
Staking Router v3 also serves as the foundation for LIP-33, which will introduce Community Staking Module v3 and Curated Module v2. Without the balance-based accounting and consolidation infrastructure, those future modules would not have the necessary infrastructure to function.
Lido currently holds over 9 million ETH in staked deposits, making it the dominant player in Ethereum liquid staking, according to DefiLlama. The upgrade reduces operational overhead for node operators by allowing them to consolidate what previously required dozens of separate validators into a handful, lowering gas costs and simplifying monitoring.
For stakers, the efficiency gains could translate into higher yields. By reducing the number of validators and streamlining accounting, Lido can lower operational costs that have historically been passed on as fees. The balance-based system also reduces the risk of accounting errors as more ETH flows into the protocol.
The upgrade arrives as competition in liquid staking intensifies. Rocket Pool and Coinbase's cbETH are vying for market share, and efficiency improvements are a key advantage. The balance-based accounting method could also make Lido more attractive to institutional stakers, who require transparent and auditable reward calculations.
The risk to watch is execution. A multi-phase migration extending into 2027 means months where old and new systems coexist. The Snapshot vote outcome will indicate community alignment behind the roadmap. Audit results expected in early July will determine whether the July deployment timeline holds.
This article is for informational purposes only and does not constitute investment advice.
