# Lido Rolls Out Biggest Core Upgrade Since V2

*Author: Bankless*
*Published: Jul 27, 2026*
*Source: https://www.bankless.com/es/read/news/lido-rolls-out-biggest-core-upgrade-since-v2*

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Lido kicked off its largest [protocol upgrade since Lido V2](https://blog.lido.fi/a-new-lido-core-upgrade-for-protocol-sustainability-and-a-leaner-ethereum/) on Monday, rolling out Curated Module v2 and Community Staking Module v3 while beginning to consolidate more than 8 million ETH (worth ~$16 billion) onto Ethereum's larger, post-Pectra validators.

## **What's the Scoop?**
- **The consolidation:** Lido is migrating over 260,000 Curated Module validators from legacy 0x01 credentials to the newer 0x02 standard, which allows a single validator to hold up to 2,048 ETH instead of 32. The shift lifts the share of ETH secured by these larger "compounding" validators from about 32% to roughly 52%, while cutting Ethereum's total validator count by close to a third and trimming attestation messages by an estimated 29% per epoch.
- **New guardrails:** For the first time, Curated Module operators must post their own ETH as collateral, which can be seized to cover losses from slashing or operational failures. It's a bond-based backstop layered on top of Lido's existing reputation-based vetting.
- **Permissionless level up:** CSMv3 introduces a new "Identified DVT Cluster" path with lower bonding requirements, native reward-splitting for operators, and faster governance for adjusting staking capacity limits. Following a DAO vote, 72 regular Simple DVT clusters have been wound down, with those operators routed toward CSM going forward.
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