The average performance of the Lido protocol validator set is higher than the average Network performance based on the RAVER methodology available at the moment of assessment (May 2025).

The Lido protocol has a subsystem which can self-execute withdrawals with no human participation, apart from requiring Node Operators to maintain tooling (their own or open-source alternatives) to process requests (semi-)automatically. This subsystem ensures withdrawal requests can’t be cancelled (within a bounded period of time) and is designed to work even during chaotic tail-risk scenarios. The total volume of withdrawals processed since May 2023 (withdrawals implementation) can be found on the dedicated Dune dashboard.

As of Q1/2025, each operator continues to operate, via Lido, less than 1% of total stake across the entire Ethereum network, taking into account cross-module totals. Quarterly updates on the details and ratio of amount of stake that is over the soft-ceiling can be found in the Lido Validator and Node Operator Metrics (VaNOM) web-app. Additionally, through the Simple DVT Module and the Community Staking Module, hundreds of net new operators have already started using the Lido protocol in 2024, further reducing concentration of stake share amongst large entities.

Ethereum community potentially could change the protocol with an emergent hard-fork (if there is a consensus to do it) that changes a few bits in the governance contract to revoke the DAO’s oversight permissions.

Open-source development enables Lido protocol clone deployment and running without any DAO votes or third-party permissions.

All Lido on Ethereum participating validators use 0x01 (smart contract) withdrawal credentials.

The major protocol version (Lido V2) is audited by four independent top-tier audit providers: Statemind, Certora(including formal verification), Hexens, Oxorio. The latest deployed V2.1 release has been audited by MixBytes and Ackee Blockchain (including extensive fuzzing test coverage). 

The full list of the Lido on Ethereum protocol audits is available publicly.

Each protocol upgrade and voting is a subject of running full-blown regression test suite.

As of Q1/2025, Node Operators using the Lido protocol continue to utilize a well-balanced suite of Consensus Layer clients in aggregate. Execution Layer diversity significantly improved as a result of Node Operator commitments to reduce their reliance on Geth as a supermajority client. Nethermind remains the dominant Execution Layer client with 38.3% usage, slightly ahead of Geth at 37.0%. Its share declined by 3.5% relative to Q4 2024, when it stood at 39.5%.

The on-chain delegation was enabled in August 2024. Now LDO holders can delegate on Aragon& Snapshot. The delegated LDO amounts and delegates' activity can be viewed on the Lido Delegation Public Dashboard.

The first permissionless module called CSM is now live on Ethereum mainnet. During the Early Adoption (permissioned) phase, over 300 identified likely independent operators joined CSM on mainnet. As of late January 2025, CSM has transitioned to its fully permissionless mode, allowing anyone to use Lido on Ethereum to run validators. As a part of CSM v2 it has been proposed to implement different operator types, allowing for rewards differentiation between operator types, such as permissionless unknown operators versus identified independent stakers.

Lido on Ethereum Liquid Staking Widget is deployed to the IPFS.

Governance includes open discussion, LDO voting (off-chain and on-chain), and a Dual Governance challenge window for stETH holders. On-chain voting runs in two phases: the main vote, then an objection period for 'against' votes only. Tokenholders can override their delegates' votes at any time by voting directly. Dual Governance lets stETH holders delay execution and exit before contentious proposals are enacted. This process balances different interests and provides strong safeguards that protect the protocol from rushed or harmful decisions.

Lido on Ethereum is governed by LDO token voting, but proposals affecting core protocol functions must pass through Dual Governance. This prevents LDO holders from bypassing safeguards and makes hostile takeovers harder.
Dual Governance gives stETH holders power to safely exit through a dynamic timelock mechanism facilitated by an escrow contract that accepts stETH, wstETH, and withdrawal NFTs.
With >1% of the total stETH supply in the escrow, Veto Signalling is activated. This blocks governance motions for 5 to 45 days, depending on the amount of opposing tokens.
With >10% of the total stETH supply in the escrow, Rage Quit is triggered. Governance stays paused until opposing stakers exit the protocol.

As of Q1 2025, approximately 22% of validators are still operated by North America–based Node Operators (US and Canada), while European entities continue to dominate the landscape. Progress in expanding geographical diversity—through the inclusion of operators from Asia and South America, as well as broader validator distribution—remains evident, though largely unchanged from the previous quarter. Continued community efforts are encouraged to further promote decentralization across regions. Latest stats can be found here.

In the Curated Operator module, keys are managed by professional node operators. As of the Q1/25, 23.1% of validators in the module utilize Attestant’s Vouch CL client. While Vouch utilization does not directly correlate to usage of Attestants Dirk key manager that includes threshold signing, it is roughly indicative. In the Simple DVT Module, participants utilize Obol and SSV Network based DVT. All SDVT validator keys are created through a Distributed Key Generation process, with no single Node Operator (or other party) controlling a full private key at any point of their existence.

Currently, if Node Operators don’t process exits on time (in other words, try to block users from obtaining their withdrawn ETH), they suffer penalties (automatically enforced by the protocol, as well as reputational). There have been 0 incidents of non-exit, and one case of delay. The Triggerable Exits framework is expected to be introduced in August 2025. It allows validators to be exited from the Execution Layer without any participation from the NO. NOs will generally still be expected to process exits via the Consensus Layer in fair weather, as it is cheaper and more efficient compared to Execution Layer driven triggered withdrawals.

Currently, validator exits are performed at-will by Node Operators, upon request for a validator to be exited by the protocol's automated Validator Exit Bus. This will continue to be the case for most validator exits (e.g., in order to make ETH available for withdrawals) even once the Lido protocol supports Execution Layer Triggerable Withdrawals.
Execution Layer Triggerable Withdrawal functionality is slated to be enabled in the Lido protocol sometime in Q3/2025. Once Triggerable Withdrawals are added to the protocol — except in the case of exits necessary for staker or protocol safety, e.g., systemic underperformance of validators in CSM — their usage by the DAO will be subject to the Dual Governance mechanism. This would mean that LDO holders would not be able to engage in mass exit of validators or trigger re-allocation of stake from one node operator to another on a whim without giving stETH stakers the ability to express concern, delay, and potentially even exit their positions, before such an action would take place.

Public Delegate Platform and Delegate Incentivization Program were established in August 2024. In Q4, 2024 Lido DAO has 7 delegates with more than 2M LDO delegated to each on-chain, which makes them eligible for incentives. You can see all the public delegates here and check delegates' voting participation here.

The GOOSE framework is utilized to set one-year and three-year goals. The goals for 2025 were adopted in November 2024, marking a new focus for the upcoming year.
Meanwhile, the current goals, adopted in November 2023, were adjusted in May 2024 (reGOOSE), remain active and relevant.

Reliance on public cloud continues to remain stable at 50% in Q1/2025. The usage is balanced against forms of Bare Metal (Colocated, On-Premises or Dedicated Hardware). Details can be found in the Lido VaNOM web-app.