Proposal: Redirect DVT & APM Incentives to Current Meta Treasury and LoL

Proposals
1

Summary

As part of the revamped Lido Earn, specifically the “meta” Earn ETH vault, which now includes the Mellow DVV vault as one of its sub-vaults, this proposal seeks:

  1. Tokenholder support to direct third-party DVT incentive flows, excluding node operator-related rewards, corresponding to the Decentralized Validator Vault (DVV) towards the Lido Earn ecosystem. Node Operator incentives from DVT would continue to be allocated per the parameters outlined in the Jan 2026 Snapshot.
  2. To improve the operational efficiency of handling incentives from Distributed Validator Technology (DVT) & Auxiliary Proposer Mechanism (APM) providers, with post-Node Operator split DVT incentives being routed to the Current Meta Treasury multisig and post-Node Operator split APM incentives being routed to the Liquidity Observation Lab (LoL) multisig.

Background

The Decentralized Validator Vault, implemented by Mellow, was launched in August 2024 as a focal point for user stake and DVT (Distributed Validator Technology) provider incentives. Its primary goals were to:

  • Accelerate adoption of DVT-based validators (Obol and SSV Network) through the Simple DVT Module (SDVTM) and Community Staking Module (CSM);
  • Drive net-new ETH deposits into the Lido protocol;
  • Provide stakers access to Obol and SSV Network incentive programs they could not otherwise directly access.

Deposits of ETH or WETH are staked via Lido and channeled to DVT-supporting modules. Users receive DVstETH tokens representing their vault share, plus Obol contributions and SSV Incentivized Mainnet Program (IMP) rewards. Steakhouse Financial serves as curator, managing withdrawal processing.

Last year, Lido contributors introduced the APM framework to establish an operational framework around an emerging class of proposer-layer innovations and sidecars. In May 2025, the Lido DAO proposal to establish the APM Committee was introduced to provide structured governance over these mechanisms. While this committee is tasked with evaluating and approving the usage of APMs, there needs to be a pragmatic solution for the coordination of incentives distributed by these teams from the DAO.

Rationale

The launch of Lido Earn ETH marks a product evolution that materially changes the DVV’s role, as Earn provides a unified interface for stakers to access curated reward strategies. With Earn ETH now live, the DVV’s function as a standalone incentive coordination mechanism becomes redundant in a more scalable and composable Earn architecture.

Redirecting DVT incentive flows toward Lido Earn creates the opportunity to:

  • Consolidate staker-facing reward strategies in a single product surface
  • Avoid continued operational complexity and governance overhead of coordinating a vault whose primary incentive programs are winding down naturally

With Earn ETH now live, the DVV’s standalone role as an incentive coordination mechanism is effectively absorbed into a more scalable architecture. Redirecting the DVV’s share of DVT incentives to the Current Meta Treasury multisig consolidates staker-facing incentives under a unified operational process. This reduces governance overhead while ensuring DVT-derived rewards continue to benefit Earn participants without interruption.

In particular, APM-derived incentives differ materially from DVT incentives: they are more variable, execution-layer–driven, and often require faster iteration and market-aware deployment.

The Growth Committee is well-positioned to oversee these flows due to its mandate to drive stETH adoption, liquidity depth, and ecosystem expansion. Routing APM incentives to the Liquidity Observation Lab (LoL) multisig complements this by providing an execution environment tailored to liquidity-focused strategies. The LoL multisig enables:

  • More agile and data-driven deployment of incentives;
  • Closer alignment with market conditions;
  • Separation from broader treasury strategies, reducing coordination overhead and enabling faster iteration.

Proposal

While the Node Operator portion of DVT related incentives will continue to follow the split methodology outlined in the Jan 2026 Snapshot, it is proposed that the share of incentives to the Distributed Validator Vault is redirected to the Lido Earn Current Meta Treasury multisig 0xcCf2daba8Bb04a232a2fDA0D01010D4EF6C69B85 where incentives will continue to support Lido Earn related initiatives, namely the Lido Earn ETH vault.

For APM-related incentives, it is proposed that future incentives are directed to the Liquidity Observation Lab multisig 0x87D93d9B2C672bf9c9642d853a8682546a5012B5 with the intention to continue supporting liquidity focused strategies that contribute to the overall health of the stETH ecosystem.

Next Steps

It is suggested that the community reviews this proposal and provides feedback over the next week. If it seems there is alignment, the proposal is suggested to be considered for inclusion within the next Snapshot vote window in early April.

5 Likes
Pol Lanski Delegate Thread
2

Snapshot vote started

We’re starting the Redirect DVT & APM Incentives to Current Meta Treasury and LoL Snapshot, active till Mon, 13 Apr 2026 16:00:00 GMT. Please don’t forget to cast your vote!

3

I have a few questions regarding this reward redistribution model
(correct me if I got something wrong):

  1. Previously, users received rewards directly from SSV (e.g., in project tokens).
    Now it is proposed to pool all Obol/SSV rewards into a single Lido Earn rewards pool.
    Does this mean that, to receive a share of these rewards, users must also provide a proportional share of capital to Lido Earn?
    If so, wouldn’t their rewards be diluted across all Lido Earn participants, regardless of whether they actually participate in Obol/SSV or not?
    It turns out that rewards for one product are received by users of another product?

  2. Would this reduce competition between Obol and SSV for users?
    If users no longer receive additional direct rewards, what differentiates the choice between the two (or not to use these products at all)?

  3. Could this create a disincentive for the underlying projects to provide rewards at all, if their contribution is diluted within a shared pool?

4

Speaking as part of the APM Committee, and a a contributor who has worked with APMs within the DAO, I want to express my support for this proposal.
As the APM framework has matured, one of the persistent friction points has been the absence of coordination mechanisms for the incentives that APM providers distribute. These incentives are structurally different from DVT rewards: they are more variable in timing and magnitude, tied to execution-layer dynamics, and often require fast deployment decisions to be effective. Hence I believe this proposal could hopefully deliver a lot of value to the Lido ecosystem.

I’d also be happy to answer any questions specifically related to the APM incentive component.

1 Like
5

Thanks for the questions.

  1. Since August 2024, the DVT incentives generated via the protocol (both Obol/SSV) have been split between Node Operators that utilize DVT and users of the Mellow Decentralized Validator Vault (DVV). When a user deposited ETH to the DVV, the ETH would be routed to Lido where it would be staked with modules supporting DVT, and the user would then receive Obol and SSV tokens.
    The proposed change suggests moving these rewards to the EarnETH vault, consolidating the incentives in a single strategy so that users do not need to choose between the DVV or other Lido related strategies. The strategy curators would adopt the tokens into the broader EarnETH strategy - e.g. SSV is adding staking to their token, and EarnETH users would receive ETH based rewards as they do today.
    Strategy curators within EarnETH will often use stETH based strategies, meaning that ETH deposited to the vault will flow to Lido as stake in many cases, which will support DVT growth within the protocol.

  2. It won’t have any impact - a Node Operator using the protocol that decides to use Obol’s technology would receive Obol incentives, and the same for SSV. Competition for the Node Operator’s choice depends on ease of use of the technology, cost, and the value of the incentives (all outside of the scope of this proposal).

  3. I don’t believe so - the DVV has existed for almost two years with combined rewards from SSV, Obol, Lido stETH, and Mellow points. DVT utilization within the protocol has continued to increase during that time, and we expect to see even more expansion of DVT in CMv2 later this year.

3 Likes
7

Snapshot vote ended

The Redirect DVT & APM Incentives to Current Meta Treasury and LoL Snapshot vote completed!
The results are:
Support: 57.7M LDO
Reject: 18 LDO