Lido DAO, the decentralized organization behind the largest liquid staking protocol in decentralized finance (DeFi), is planning a major shift in strategy. A newly published proposal outlines a $60 million budget for 2026 aimed at expanding Lido beyond its core Ethereum liquid staking business.
The proposal signals Lido’s intention to evolve from a single-product protocol into a broader, multi-product organization. While Ethereum staking remains central to its success today, the DAO believes long-term growth will require diversification, new revenue streams, and stronger resilience against market changes.
At the heart of the plan is a document titled “2026 Ecosystem Grant Request (EGG): Executing GOOSE-3.” If approved by Lido DAO token holders, the proposal would unlock $60 million to fund the development of new products and ecosystem initiatives starting in 2026.
According to the proposal, the funds would be used to build new earning products and vault structures designed to serve different types of users. These include on-chain treasuries as well as regulated entities that may have more complex requirements when interacting with DeFi protocols. By targeting a wider range of users, Lido hopes to reduce its reliance on a single product line and open up additional growth opportunities.
“The proposed focus for the Foundations in 2026 shifts towards evolving Lido’s position from a single-product protocol focused on liquid staking to an innovative organization with a product portfolio,” the proposal states. It adds that expanding the product offering is key to creating new revenue streams and ensuring the protocol’s long-term sustainability.
Liquid staking has been a major driver of Lido’s rise in DeFi. The model allows users to stake their crypto assets while still maintaining liquidity, meaning they can use their staked tokens across other DeFi applications while continuing to earn staking rewards. This flexibility has helped liquid staking gain widespread adoption, particularly on Ethereum.
However, the proposal suggests that relying too heavily on one product could pose risks over time. Market conditions, regulatory developments, or competition could all impact liquid staking demand. By broadening its scope, Lido aims to better protect itself against these uncertainties.
Before any of these plans move forward, the proposal must be approved through a vote by Lido DAO token holders. If passed, it would mark one of the most ambitious expansions in the protocol’s history, setting the stage for Lido to become a more diversified force in the DeFi ecosystem by 2026.
For now, the decision rests with the community, which will determine whether Lido takes its next step beyond liquid staking.
Also Read: ICE Weighs $5B MoonPay Deal as Wall Street Embraces Crypto
