Nikolas Sargeant
The SSV-powered distributed validators (DVs) in the new Simple DVT Software Module are now live and ready for deposits.
In a press release shared with Cryptowisser, the team revealed that SSV Network Distributed Validator Technology (DVT), among others, will be used by cluster participants to operate the DVs associated with Lido, the liquid staking middleware solution for Ethereum.
With the Simple DVT module, it is now easy to diversify the node operator set connected to and utilize the Lido protocol while benefiting from the technology’s ability to increase resilience, distribution, and security. The module also ensures the development of more scalable and permissionless DVT-based modules in the future.
While commenting on this latest deployment, 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 team revealed that the module capacity will initially be capped at 0.5% of all ETH tokens staked by middleware users (currently valued at around $30.1B).
The threshold was increased to 4% following a Lido DAO vote. The team added that 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 launch of DVT within the Lido software suite will help 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.
Furthermore, node operators might potentially benefit from reduced hardware and capital requirements for stakers. In addition to that, 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.
Will Shannon, a contributor supporting the Lido middleware, added that,
“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 taking a central role in decentralizing ETH staking and making the entire network less susceptible to attacks. With DVT, there are no single points of failure and it helps minimize the potential for slashing by allowing a validator to be operated by multiple parties, such as professional node operators and at-home stakers.
SSV.Network is an open-source protocol that enables entities to use the network's staking technology to create DVT-powered staking applications and services.
Since its Permissionless launch in December, SSV.Network and its 700+ node operators are now celebrating securing over 1,000,000 ETH. This amount will go higher as the Simple DVT module goes live.
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.
Meanwhile, 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.
