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 (December 2025).

The Lido protocol has a subsystem that ensures withdrawal requests are executed without relying solely on manual operator actions. Since May 2023, Node Operators have used their own or open-source tooling to process exits automatically, and all withdrawals have been fulfilled. 

With the introduction of Triggerable Withdrawals (TWs), exits can now also be triggered by the DAO. This removes the remaining “hostage risk” from operator refusal or negligence, while introducing a new governance responsibility for the DAO. The total volume of processed withdrawals can be found on the dedicated Dune dashboard.

As of Q3/2025, 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. In 2026, the majority of the validators will be migrating to 0x02 withdrawal credential type.

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 Q3/2025, 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 39.8% usage, slightly ahead of Geth at 37.1%.

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 Community Staking Module (CSM) is Lido’s permissionless module that allows independent node operators to join and leave the Lido operator set without going through a governance-driven onboarding process. Instead of curated entry, operators provide a bond and register directly through the CSM smart contracts. With CSM live, anyone who meets the technical requirements and provides the required bond can permissionlessly enter the set, receive rewards, and later exit by withdrawing their bond and completing validator offboarding. This unlocks true openness and decentralization for Lido’s operator ecosystem.

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 Q3/2025, approximately 20% of validators are still operated by North America–based Node Operators (US and Canada), while European entities continue to dominate the landscape at 62%. 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 Q3/25, 22.6% 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). The Triggerable Exits framework is live on the Lido protocol as of October 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. However, the Triggerable Withdrawals framework introduces an additional fallback mechanism if regular exit steps are not carried out, substantially reducing trust assumptions towards NOs and Oracles.

Historically, 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 continues to be the case for most validator exits (e.g., in order to make ETH available for withdrawals) even with the Lido protocol’s support for Execution Layer Triggerable Withdrawals (TW). The TW framework is now live in the Lido protocol (as of October 2025) and enables validator exits to be initiated via the Execution Layer without requiring Node Operator involvement (subject to the applicable exit flow and request being in place). This allows the DAO to directly initiate validator exits in exceptional or emergency situations; however, the DAO’s use of TW for actions such as mass validator exits or stake re-allocation remains subject to the Dual Governance mechanism. As a result, such actions cannot be executed unilaterally or immediately, and stETH holders retain the ability to signal concern, delay execution, and potentially exit their positions before changes take effect.

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 2026 were adopted in November 2024, marking a new focus for the upcoming year.

Reliance on public cloud continues to remain stable at 49% in Q3/2025. 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.

Permissionless participation is key to decentralizing Lido’s validator set and reducing reliance on governance decisions or trusted relationships. It ensures that anyone meeting technical and performance requirements can join the protocol without needing approval, which strengthens trustlessness and network resilience.  

Currently, around 5% of Lido’s stake is operated through the Community Staking Module (CSM). A proposal to raise CSM’s share to 10% has been approved but not yet implemented.

Ethereum’s EIP-7251 has been implemented, enabling validators to consolidate balances above 32 ETH (up to 2048 ETH). This reduces the total number of active validator indices and lowers network overhead, contributing to scalability and long-term protocol health.  

Lido is preparing to adopt consolidation within its validator set as discussed in this proposal.