The CEO of SSV Labs stated that this module could increase Lido’s node operators and improve staking risk management.
SSV Network Proposes Permissioned Staking Module for Lido
SSV Network has proposed a new permissioned staking module for Lido. This module aims to integrate Ethereum node operators (NOs) into Lido’s operator set using SSV’s Distributed Validator Technology (DVT). If approved, it will be the first third-party module for the Lido Staking Router, further decentralizing the set of node operators.
Alon Muroch stated that the module would enhance staking accessibility and security, expand Lido’s node operator set, and reduce staking risks. Additionally, he emphasized that using DVT would make Ethereum more resilient and decentralized.
A Step Toward Strengthening Ethereum’s Decentralization
Corporate interest in Ethereum staking products increased after Donald Trump’s victory in the 2024 U.S. presidential election, driven by expectations of a more crypto-friendly administration. SSV Network noted that improvements in staking infrastructure are necessary due to risks such as single points of failure and coordination issues in the current system.
By utilizing DVT, SSV programmatically manages coordination, reducing human errors. Moreover, DVT enables institutions to distribute node operations across multiple nodes, enhancing performance and minimizing downtime risks.
SSV Network currently secures over 2 million Ether through more than 1,400 node operators worldwide, with a total value exceeding $4.7 billion. This proposal aims to enhance the decentralization of the Ethereum mainnet and provide broader access to Ethereum staking.
SSV Foundation emphasizes the increasing adoption of permissionless infrastructure and expanded access to Ethereum staking. This module is seen as a significant step toward secure and reliable participation in the staking ecosystem.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.