SSV Network has introduced a proposal for a permissionless staking module for Lido on Ethereum, aiming to bolster decentralization and improve the staking infrastructure for institutional stakeholders. This initiative employs SSV’s Distributed Validator Technology (DVT) to enhance the integration of node operators into Lido’s setup on Ethereum. Should it receive approval, this would be the first external module incorporated into the Lido Staking Router, further diversifying the operator set that employs Lido.
Alon Muroch, CEO of SSV Labs, highlighted that the new module would enhance staking accessibility and security. He emphasized the potential for increasing Lido’s node operator set while mitigating staking risks, providing node operators a seamless way to integrate DVT to fortify their operation. Moreover, for Ethereum, more stakes processed through DVT would enhance the network’s resilience and decentralization across various geographic and infrastructural configurations.
The proposal was announced following Lido’s recent v3 update designed to increase flexibility for institutional Ether staking participants. Despite advancements, existing staking infrastructure still presents risks like single points of failure. Muroch noted that SSV addresses these risks with programmatic coordination, reducing human errors and downtime risks by distributing node operations.
Currently, SSV Network secures over $4.7 billion in staked Ether across more than 1,400 globally distributed nodes. The aim is to advance Ethereum’s decentralization, as stated by Elad Gafini of SSV Foundation. He welcomed the expanded adoption of their permissionless infrastructure, considering it a crucial step for secure participation in the staking ecosystem.
