Simple DVT Module Powered by SSV.Network Goes Live
Tel-Aviv, Israel, July 11th, 2024, Chainwire
11 July 2024 – The SSV-powered distributed validators (DVs) in the new Simple DVT Software Module have officially been deployed and are ready for deposits. SSV Network Distributed Validator Technology (DVT), among others, will be used by cluster participants to run the DVs associated with Lido, the liquid staking middleware solution for Ethereum.
The Simple DVT module is designed to diversify the node operator set connected to and utilizing the Lido protocol while benefiting from the technology’s ability to increase resilience, distribution, and security. The module also paves the way for more scalable and permissionless DVT-based modules in the future.
Eridian, Simple DVT administrator at SSV Network DAO, said, “The Lido middleware utilizing DVT protocols including SSV is an important step towards vastly increasing the number of node operators and enabling solo home stakers to participate as node operators. SSV is optimized to serve as a low/no coordination DVT solution and will facilitate the development of trustless modules in the future.”
SSV.Network’s implementation of DVT forms a component of the Simple DVT Module, which comprises the newest Lido-branded staking software module. The module capacity will initially be capped at 0.5% of all ETH tokens staked by middleware users (currently valued at around $30.1B). This threshold has been increased to 4% following a Lido DAO vote. The DVT clusters that were running on the Lido testnet have been evaluated by the LNOSG committee and have started activating keys on mainnet.
The introduction of DVT within the Lido software suite will spotlight DVT while strengthening the overall staking ecosystem. The technology will drastically increase the number of participating node operators using the Lido middleware, help increase client diversity, enhance fault tolerance, and potentially reduce bond requirements in the future.
Through the usage of DVT, node operators may also potentially benefit from reduced hardware and capital requirements for stakers. Moreover, node operators may also elect to utilize DVT infra such as SSV.Network should they choose to participate in the upcoming permissionless Community Staking Module. Lido is one of several staking protocols implementing DVT by plugging into SSV.Network’s decentralized infrastructure.
Will Shannon, a contributor supporting the Lido middleware, said, “Incorporating DVT is the fastest way to expand the number of node operators using the Lido protocol to run validators. Simple DVT is the first step, with an opportunity to connect over 300 net-new node operators to the middleware in the first six months following the launch of the module. The SSV team has developed a highly performant DVT protocol that over time has the potential to further the decentralization and resilience of node operators across infrastructure, clients, and geographies.”
DVT is becoming increasingly crucial in decentralizing ETH staking and making the entire network less susceptible to attacks. It eliminates single points of failure and minimizes the potential for slashing by allowing a validator to be operated by multiple parties, such as professional node operators and at-home stakers. The technology can significantly mitigate the creeping centralization that is endemic to all complex systems, especially the recent challenges around supermajority clients.
As an open-source protocol, SSV.Network enables any entity to use the network’s staking technology to create DVT-powered staking applications and services. Since its Permissionless launch in December, the protocol and its 700+ node operators are now celebrating securing over 1,000,000 ETH. This amount is set to increase as the Simple DVT module goes live, in tandem with the many builders in its ecosystem.
About SSV.Network
SSV.Network creates easy-to-use and scalable infrastructure for developers. SSV is powered by DVT technology, a pioneering architectural framework designed specifically for Ethereum staking. Thanks to its permissionless design, SSV empowers staking operators and validators to join the network and participate in Ethereum staking.
Learn more: https://ssv.network/
About Lido
Lido is an open-source, liquid staking middleware, providing a simple way to earn rewards using your digital assets. With a mission to democratize staking, the Lido middleware connects node operators and users by allowing users to self-stake their digital assets without the need to maintain hardware. Lido empowers users to self-mint liquid staking tokens which they can freely use across the DeFi ecosystem.
Learn more: https://lido.fi/
