Lido dev team recently shared the plan for the Merge-ready protocol upgrade (see the "Discussion" link).
The main change required for the protocol to face The Merge is the ability to collect & redistribute post-Merge reward streams. At the same time, there are multiple protocol safety net improvements to be implemented along with this change, increasing the protocol resiliency & stability. Those are highly desired as the Lido has come past the 4m ETH staked threshold.
Below we list all the changes of the “Merge-ready protocol service pack”:
The changes are implemented with the following PR in the official Lido DAO repository: https://github.com/lidofinance/lido-dao/pull/401.
The on-chain code is peer-reviewed internally and audited by the MixBytes team.