SSV Labs proposes a decentralised staking module for Lido on Ethereum, increasing security and scalability with DVT technology.
Clusterform, an independent subsidiary of SSV Labs, has proposed a new permissionless stacking module for Lido, with the aim of expanding the number of node operators that can use the Lido protocol in a scalable and decentralised manner.
The company has proposed a permissionless staking module that uses SSV Network's distributed validator technology (DVT) to integrate node operators (NOs) into Lido's group of operators (LDOs) on Ethereum.
According to a statement on 4 March, if accepted, the proposal would further help decentralise the group of node operators using Lido by adding the first third-party module to the Lido staking router.
SSSV Network Proposal - Source: Lido
Utilizing SSV Network's DVT, the new staking module aims to make staking more accessible and secure, according to Alon Muroch, founder and CEO of SSV Labs, one of SSV Network's main contributors.
The module could further expand Lido's pool of node operators and improve risk mitigation in staking, he said, adding:
"This is a smooth integration of DVT and a permissionless method for NOs to manage staking for Lido, strengthening their operations."
"Increased staking through the DVT makes Ethereum more decentralised and resilient (due to different infrastructure configurations, clients and geographies)."
SSSV Network Proposal - Source: Lido
Institutional Interest in Ethereum Staking Grows
Institutional interest in Ethereum staking products has increased after the victory of Donald Trump in the 2024 US presidential election, in part due to expectations of a more cryptocurrency-friendly regime in the country over the next four years.
The proposal comes three weeks after the launch of Lido v3, an update designed to offer more flexibility and composability to institutional participants in Ethereum (ETH) staking.
The staking infrastructure still needs significant improvements to attract more participants from large financial institutions.
"The current infrastructure still has risks such as single points of failure and coordination issues," said Murokh.
"With SSV, coordination is handled in a programmed manner (e.g. via DKG), reducing human errors. With DVT, institutions can improve performance and reduce the risk of inactivity by distributing transactions across multiple nodes instead of relying on a single node," he explained.
"DVT offers cautious investors a safe option to select ETH and helps reduce the risks of staking," added Murokh.
🔍 Source: SSV Network Explorer
SSV Network Drives the Decentralisation of Ethereum with $4.7 Billion in Staking
Currently, SSV Network (SSV) hosts over $4.7 billion in Ether in staking through more than 1.400 node operators distributed globally, as shown by the SSV Network Explorer.
The ultimate goal of SSV Network's proposal is to promote the decentralisation of Ethereum, said Elad Gafini, Operations Manager of the SSV Foundation, adding:
"The increasing use of our permissionless infrastructure, which increases access to staking on Ethereum and strengthens its decentralisation, is welcomed by the SSV Network Foundation."
"This proposed module represents an important step towards secure and trustless participation for all in the staking ecosystem," concluded Gafini.
Tom Lee's BitMine strategically accumulates 72,000 ETH ($281M) in the recent crash, bringing its holdings to 3.03M ETH. The institutional accumulation pushes exchange reserves to lows. Tom Lee and Arthur Hayes predict massive price increases, seeing ETH between $10,000 and $15,000.
Clusterform, an independent subsidiary of SSV Labs, has proposed a new permissionless stacking module for Lido, with the aim of expanding the number of node operators that can use the Lido protocol in a scalable and decentralised manner.
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The company has proposed a permissionless staking module that uses SSV Network's distributed validator technology (DVT) to integrate node operators (NOs) into Lido's group of operators (LDOs) on Ethereum.
According to a statement on 4 March, if accepted, the proposal would further help decentralise the group of node operators using Lido by adding the first third-party module to the Lido staking router.
SSSV Network Proposal - Source: Lido
Utilizing SSV Network's DVT, the new staking module aims to make staking more accessible and secure, according to Alon Muroch, founder and CEO of SSV Labs, one of SSV Network's main contributors.
The module could further expand Lido's pool of node operators and improve risk mitigation in staking, he said, adding:
"This is a smooth integration of DVT and a permissionless method for NOs to manage staking for Lido, strengthening their operations."
"Increased staking through the DVT makes Ethereum more decentralised and resilient (due to different infrastructure configurations, clients and geographies)."
Institutional Interest in Ethereum Staking Grows
Institutional interest in Ethereum staking products has increased after the victory of Donald Trump in the 2024 US presidential election, in part due to expectations of a more cryptocurrency-friendly regime in the country over the next four years.
The proposal comes three weeks after the launch of Lido v3, an update designed to offer more flexibility and composability to institutional participants in Ethereum (ETH) staking.
The staking infrastructure still needs significant improvements to attract more participants from large financial institutions.
"The current infrastructure still has risks such as single points of failure and coordination issues," said Murokh.
"With SSV, coordination is handled in a programmed manner (e.g. via DKG), reducing human errors. With DVT, institutions can improve performance and reduce the risk of inactivity by distributing transactions across multiple nodes instead of relying on a single node," he explained.
"DVT offers cautious investors a safe option to select ETH and helps reduce the risks of staking," added Murokh.
SSV Network Drives the Decentralisation of Ethereum with $4.7 Billion in Staking
Currently, SSV Network (SSV) hosts over $4.7 billion in Ether in staking through more than 1.400 node operators distributed globally, as shown by the SSV Network Explorer.
The ultimate goal of SSV Network's proposal is to promote the decentralisation of Ethereum, said Elad Gafini, Operations Manager of the SSV Foundation, adding:
"The increasing use of our permissionless infrastructure, which increases access to staking on Ethereum and strengthens its decentralisation, is welcomed by the SSV Network Foundation."
"This proposed module represents an important step towards secure and trustless participation for all in the staking ecosystem," concluded Gafini.
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