: : [Issue] Lido V3: Strategy to Recapture 2.7 Million ETH Author: Ponyo - Lido V2's uniform design failed to meet the diverse needs of stakers. While the staking market grew 73% since mid-2023, Lido's growth was only 34%. The 2.7 million ETH uncaptured represents an annual opportunity cost of approximately $20 million. The outflow was divided between native staking (8.5 million ETH) and competing LST (4.5 million ETH). The yield-seeking (APR Maxi) segment, however, used Lido solely as an inflow channel for EigenLayer and LRT, losing its value-added layer. V3 is designed to address all three of these segments. - V3 structurally resolves the core tradeoff of Liquid Staking. Previous Liquid Staking systems were forced to accommodate a uniform risk pool. Introduced in V3, stVault is a customized staking service where users can choose their own operator, fee structure, and risk profile. Users can secure liquidity by issuing stETH for their Vault positions, or operate like native staking without issuing. However, risk isolation has structural limitations. While Vault risk remains isolated under normal operating conditions, losses are transferred to the Core Pool through a forced rebalancing mechanism in extreme market conditions. In this regard, V3 is rated as achieving 95% risk isolation. V3 provides the foundation for Lido to recapture three segments it has previously overlooked. Native stakers can secure control without sacrificing liquidity, institutions can establish asset segregation and compliance systems, and yield-seeking users can gain composability by leveraging Lido as a foundational layer. With 70% of Ethereum still unstaken, V3 serves as a strategic foundation for Lido to recover and expand its lost market share. 📱 Full Issue Article (Post) 🌎 Full Issue Article (Website) FP Website | Telegram (EN / KR) | X (EN / KR)