Lido Finance implements SSV-powered 'simple DVT module' to further diversify node operators

Lido Finance, the largest liquid staking protocol for ether staking deposits, has implemented the “simple DVT module” — a distributed validators solution powered by SSV Network. The solution eliminates single points of failure by splitting validator keys into keyshares and distributing them to multiple nodes.

Distributed Validator Technology (DVT) allows Ethereum validators to be distributed over multiple non-trusting nodes, promoting client diversity and enhancing fault tolerance. The simple DVT module enables ETH stakers to become Lido node operators through the use of SSV DVT clusters managed within groups of selected operators.

The goal is to diversify the node operators linked to the Lido protocol, boosting staking decentralization and paving the way for more permissionless staking solutions. Node operators may benefit from reduced hardware and capital requirements.

The module, part of the newest Lido-branded staking software, initially has a capacity capped at 0.5% of all ETH tokens staked, with an approved increase to 4% following a Lido DAO vote.

SSV is one of the few projects, alongside others like Obol, that offers DVT products.

Since its mainnet launch in December 2023, SSV has grown to over 700 node operators, including solo stakers and pooled operators like Lido and EtherFi. It now secures over one million staked ether, worth over $3 billion, across its distributed validator network.

In April, Lido added support for Obol’s simple DVT module.

The SSV Network offers a decentralized staking mechanism by connecting users to a network of “operators” responsible for jointly managing Ethereum validator nodes in a trust-minimized fashion. It offers an alternative to conventional staking services offered via either centralized exchanges or liquid staking that can potentially introduce issues by requiring ETH holders to give up custody of their holdings.