Lido unveils Staking Router v3 to enhance Ethereum staking efficiency

Lido unveiled Staking Router v3 (LIP-35), a protocol upgrade that shifts from count-based to balance-based accounting and raises the effective validator cap to 2,048 ETH (from 32 ETH). The change should improve precision in totalPooledEther calculations (affecting the stETH/ETH exchange rate), reduce operator overhead and gas costs by enabling validator consolidation, and introduce mechanisms (TopUpGateway, deposit reserve, consolidation pipeline) for safer, proof-verified stake migrations. Governance and execution timing matter: announcement on June 3, 2026, a Snapshot vote in late June, audits expected to finish by early July, and tentative mainnet deployment in July 2026. Migration phases extend into ~Q1 2027. Market impact is potentially bullish for stETH liquidity and staking efficiency, but meaningful execution and audit risks create short-term uncertainty for investors.