Following up on our earlier posts (1, 2) describing the risk assessment framework and the approach to vault limits and reserve ratios, this update outlines the default parameters that we will propose to be used for stVaults.
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Risk reserves and stETH minting caps for Identified Node Operators are presented in Table 1
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Risk reserves and stETH minting caps for DVT Vaults are presented in Table 2
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Risk reserves and stETH minting caps for Non-Identified Node Operators can be found here
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Fees are presented in Table 3
These parameters define the target state we aim to reach after the initial running-in period. Before that, the Lido V3 rollout will be gradual, with significantly lower initial limits and potential additional restrictions (e.g., operator-level caps, lower and fine-grained minting capabilities).
Limits and reserve ratios
Lido V3 introduces Reserve Ratios and Tiers, setting specific limits for the amount of stETH that can be minted for stVaults. The main goal of these limits, mandatory collateral, and risk tiers is to account for stake concentration and correlated slashing risks, minimizing possible effects on the broader protocol and stETH holders.
A brief recap of the proposed Tier system from the previous post:
Node Operators, Tiers and Vaults
Each Node Operator is assigned a set of Vault Tiers (an example of a vault group). A Tier defines two things: the Reserve Ratio (RR) and the total stETH minting cap.
For example:
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Tier 1 — 5% RR, 47,500 stETH cap;
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Tier 2 — 6% RR, 47,000 stETH cap (94% of 50,000 ETH);
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Tier 3 — 9% RR, 182,000 stETH cap (91% of 200,000 ETH).
A Tier’s minting cap limits how much stETH can be minted, not how much ETH can be deposited into an stVault and then staked. For example, in a Tier 1 with 5% RR and a 47,500 stETH cap, users can deposit any amount of ETH into the stVaults under this Tier. However, stETH can only be minted up to the 47,500 limit. Once the cap is reached, additional ETH deposits are still allowed, but no new stETH can be minted until stETH is burned within the stVaults in this Tier.
Tiers are scoped per Node Operator. This means two Operators may each have a Tier 1 with identical parameters — say, 5% RR and a 47,500 stETH cap—but these Tiers are entirely separate.
Global limit
To preserve protocol resilience, we aim to ensure that even if all ETH entering stVaults comes from Lido Core withdrawals, the remaining ETH in Lido Core stays at least 2x larger than the total ETH in stVaults. The initial total limit of stETH mintable through stVaults is set to ~25% of the Lido Protocol, subject to change through DAO governance if needed.
Please find an illustration showing the relationship between different limits and caps below.
We propose the following parameters as the target state for stVaults:
Default Tiers for Identified Node Operators
Identified Node Operators will follow the tier system described in the original framework. Limits and Reserve Ratios are assigned per tier, gradually increasing from Tier 1 to Tier 5:
Table 1 “Identified Node Operators Tiers”
| Tier Number | Maximum ETH used for mintable stETH calculation (A) | Maximum mintable stETH in Tier (A * (1 - B)) | Reserve Ratio (B) |
|---|---|---|---|
| 1 | 50 000 ETH | 47 500 stETH | 5% |
| 2 | 50 000 ETH | 47 000 stETH | 6% |
| 3 | 200 000 ETH | 182 000 stETH | 9% |
| 4 | 300 000 ETH | 258 000 stETH | 14% |
| 5 | 400 000 ETH | 320 000 stETH | 20% |
| Total | 1 000 000 ETH | 854 500 stETH |
Default Tiers for DVT Vaults
Node Operators leveraging a verified multi-operator Distributed Validator Technology (DVT) will be provided with a separate set of default parameters. These are designed to reflect DVT’s improved fault tolerance while accounting for the inherent risks of the underlying technology. Following parameters are only applicable to a multi-operator DVT and should not be used for an intra-operator DVT setup.
Table 2 “DVT Vaults Tiers”
| Tier Number | Maximum ETH used for mintable stETH calculation (A) | Maximum mintable stETH in Tier (A * (1 - B)) | Reserve Ratio (B) |
|---|---|---|---|
| 1 | 50 000 ETH | 49 000 ETH | 2% |
| 2 | 50 000 ETH | 49 000 ETH | 2% |
| 3 | 200 000 ETH | 196 000 ETH | 2% |
| 4 | 300 000 ETH | 291 000 ETH | 3% |
| 5 | 400 000 ETH | 384 000 ETH | 4% |
| Total | 1 000 000 ETH | 969 000 stETH |
Upd 2025-08-13: Please note that the will be a separate set of DVT Vaults Tiers for each DVT provider (Obol, SSV).
Default Reserve Ratio for Non-Identified Node Operators Vaults
For non-identified Node Operators, a flat 50% Reserve Ratio will apply by default.
Fees
A brief recap of the proposed fee structure from the previous post:
stVaults will allow charging up to 3 fee components: Infrastructure fee, Reservation liquidity fee (Mintable stETH fee) and Liquidity fee (fee on minted stETH). Also users should take into account minted stETH rebase.
Infrastructure fee = Total_value * Lido_Core_APR * Infrastructure_fee_percentage
Reservation liquidity fee = Mintable_stETH * Lido_Core_APR * Reservation_liquidity_fee_percentage
Liquidity fee = Minted_stETH * Lido_Core_APR * Liquidity_fee_percentage,
Where Infrastructure_fee_percentage, Reservation_liquidity_fee_percentage and Liquidity_fee_percentage - percentages set up by DAO.
Please note that stETH_APR = 0.9 * Lido_Core_APR
Fee basis approaches
Fee basis depends on one of the following: Total Value, Mintable stETH, or Minted stETH.
Proposed fee parameters for the stVaults launch
Table 3 “Fees”
| Parameter | Value | Comment |
|---|---|---|
| Infrastructure_fee_percentage | 1% | |
| Reservation_liquidity_fee_percentage | 0% | |
| Liquidity_fee_percentage | 6.5% | This parameter could be adjusted for some cases based on the stake allocation dynamics within the whole Lido protocol, e.g. including impact on Lido Core |
Non-standard parameters
The parameters outlined above (RR, fees, caps) represent the default setup. However, non-standard configurations may be considered based on the specifics of a proposal. Parameters can deviate from defaults in justified cases. Such deviations would be subject to DAO review and approval. The details are a subject of the follow-up Lido V3 launch materials.