Lido Proposes Expansion of Distributed Validator Technology (DVT) Testing
Lido Finance, the leading Liquid Staking solution on Ethereum, has announced a proposal to expand the testing scope of Distributed Validator Technology (DVT).
Lido Proposes Expansion of Distributed Validator Technology (DVT) Testing
Lido Finance recently posted a proposal on its forum to expand the testing scope of DVT to 4% of the total network value.
A proposal for the expansion of the Simple DVT Module has been published on the Lido forum 🌐
— Lido (@LidoFinance) May 24, 2024
If approved, this would:
1⃣ Allow for the creation of larger Node Operator clusters.
2⃣ Increase the maximum target share of the Simple DVT module to 4%.
Check the full proposal here:… pic.twitter.com/AajyOLyrXo
Lido's proposal for expanding DVT testing. Source: Lido Finance Twitter (24/05/2024)
Reasons for the Proposal:
The author explained that the preliminary mainnets of Obol Network and SSV Network have been deployed, and other testnet plans in Q2 provide a solid foundation for expanding the technology's limits.
Key Changes in the Proposal:
- Increase Total Clusters: From 45 to 72 (36 clusters for each project).
- Increase Maximum Validators per Cluster: An estimated temporary maximum of 80 Validators.
- Raise DVT Application Limit: Up to 4% of the total network value.
- Establish 10 Super Simple DVT Clusters: Comprised of different Node Operator groups within the network.
The proposal is currently in the drafting phase and requires further community discussion before being put to a DAO vote. This is part of the reGOOSE roadmap, recently approved by the Lido DAO, aimed at decentralizing and reducing network risks.
great to see reGOOSE pass in governance, I strongly believe this is the right direction for Lido https://t.co/6p0RPk8gxb
— Hasu⚡️🤖 (@hasufl) May 24, 2024
Lido DAO's reGOOSE roadmap aimed at decentralization and risk reduction. Source: Twitter (24/05/2024)
In November 2023, Lido approved the initial testing of Simple DVT, but the limit was set at 0.5% of the network's total value.
About Distributed Validator Technology (DVT):
DVT distributes Validators into clusters, splitting signatures among Validators to reduce attack risks and optimize Validator performance.
Key Highlights:
- Current Testing Limit: Initially set at 0.5% of the total network value.
- Proposed Increase: To expand the limit to 4% of the total network value.
- Validator Clusters: Increase from 45 to 72 clusters.
- Max Validators per Cluster: Temporarily estimated at 80.
- Super Simple DVT Clusters: Establishment of 10 clusters comprising various Node Operators.
This proposal marks a significant step in enhancing the security and efficiency of Lido Finance's staking operations through advanced validator distribution technologies.
