Lido V3 & Solstice: Delivering Yield Strategies for Institutions & Retail
Product Overview
Solstice is a collection of yield-bearing products based on the USX stablecoin. With over $1B staked through Solstice Staking across Ethereum and Solana, the team is launching YieldVault, a delta-neutral hedge fund strategy leveraging Lido stVaults that has been live and proven in the market for over three years.
With stVaults, Solstice simplifies onboarding for institutions seeking access to staking rewards that may exceed those of traditional markets, delivered in a streamlined way. Likewise, Solstice stVaults give retail users access to the same conservative, yield-generating strategies that are typically reserved for accredited and larger investors.
Problems & Opportunities
For Solstice, one of the key challenges in institutional onboarding is ensuring strict asset segregation and transparency—a non-starter for compliance-sensitive clients managing large amounts of capital. Solstice needed a way to offer institutional-grade staking with dedicated infrastructure, isolated vaults, and tailored validator support to meet these operational and regulatory standards.
Why stVaults and stETH?
- Dedicated vaults per client: stVaults allow Solstice to isolate each institutional user’s staking activity, enabling clear asset separation and meeting strict compliance requirements.
- Deep stETH liquidity: stVaults are built around stETH — the most liquid LST in Ethereum DeFi — ensuring smooth execution and capital efficiency.
- No Commingling: Client funds are not commingled and remain fully traceable at all times.
Integration and Tech Setup
Solstice integrates stVaults via a customer portal, allowing institutional users to request and manage dedicated stVaults. This setup ensures that each customer interacts with an isolated vault, enabling clean separation of assets and operations. As part of its commitment to institutional-grade operations, Solstice is running an on-premise operation in Switzerland with the highest standards in such a banking driven jurisdiction.
Expected Outcomes
By integrating stVaults, Solstice enables the deployment of isolated, high-yield staking setups that offer institutional-grade strategies, bridging the gap between DeFi innovation and traditional capital markets. Solstice is further expanding this bridge by actively working with Swiss banks.