Lido Core 2026 Upgrade

The 2026 Lido Core upgrade introduces major improvements on the operator and validator layers, strengthening protocol security for stakers while keeping aligned with the Ethereum roadmap.

• Curated Module v2 (CMv2) introduces native support for 0x02 validators, bond and penalty mechanisms, and operator classification. It will gradually replace the legacy Curated Module as ETH stake is migrated to the new module through validator consolidation.
• CSM expands permissionless participation through the new Identified DVT Cluster operator type, alongside technical improvements that make the module more reliable and operator-friendly.

Contributors are now working with operators on validator consolidation over the next few months. The migration could increase the share of ETH secured by 0x02 validators from around 32% to 52%, while reducing the total number of validators across the Ethereum network by around 30%.

Further upgrades to both CMv2 and CSM in the near future:

• CMv2 will introduce a dynamic stake allocation mechanism through which stake can be distributed among Node Operators based on transparent parameters such as fees, performance, and other relevant factors.
• CSM will introduce a dedicated module for 0x02 validators, designed specifically to enable permissionless operators to run 0x02 validators with a bond. This new module will operate alongside the existing CSM instance for 0x01 validators, giving operators the flexibility to choose.

https://x.com/LidoFinance/status/2081757295310983272