- stVaults let investors stake ETH, stay liquid, and pick high-performing validators for better, safer returns.
- Kiln handles validator monitoring, uptime, and compliance, giving institutions a ready-to-use, secure staking solution.
- Lido V3 stVaults combine liquidity, strong performance, and transparency, setting a new standard for institutional ETH staking.
Ethereum staking is entering a new era as Lido V3 partners with Kiln Finance to introduce stVaults, a solution designed specifically for institutional investors. The launch addresses a long-standing challenge: balancing liquidity with performance in ETH staking.
Institutional investors can now stake ETH while choosing which validators manage their funds, all without losing access to liquid assets. Kiln, an approved Lido V3 node operator, handles these validators, ensuring strong performance and simple day-to-day management.
In the past, institutions faced a tough choice. Direct staking let them pick validators and get better results, but their funds were locked up. Liquid staking offered flexibility, yet performance was averaged across a large pool.
This trade-off made it hard for platforms and asset managers to create strategies closely tied to Ethereum’s fundamentals. Lido V3’s stVaults solve this problem, letting institutions enjoy both liquidity and high-performance validator selection.
How stVaults Work
stVaults let ETH stay staked with Kiln’s top-performing validators, while investors can optionally create stETH tokens. This means investors can access liquidity from their staked ETH without losing control over which validators handle their funds. The system is transparent and flexible, letting institutions track each validator’s performance directly on-chain.
Kiln handles all the heavy lifting, including monitoring validators, ensuring uptime, and meeting compliance standards, so institutions get a ready-to-use solution. On top of that, Kiln’s infrastructure meets SOC 2 Type II standards, offering enterprise-level security.
Lido V3 adds audited smart contracts to back each stVault, while vault-level separation keeps assets distinct and makes reporting simple. This clarity helps exchanges, wallets, and asset managers satisfy regulatory and audit requirements. Overall, the setup builds trust and lets platforms offer liquid staking products without introducing extra DeFi or lending risks.
Performance-Driven Outcomes
By letting ETH holders access stETH while using Kiln’s top-performing validators, stVaults offer better returns with lower risk than traditional pooled staking. On top of that, institutions can easily grow their staking operations without hassle, plugging stVaults straight into their existing systems while staying fully compliant. This setup effectively combines strong performance, flexible access to funds, and regulatory clarity, setting a new benchmark for professional Ethereum staking.
