The SSV network has suggested a new permission staking module for Lido, aimed at improving decentralization and staking infrastructure for institutional participants.
The SSV network recommends a permission staking module that uses SSV (DVT) validator technology distribution to include node (NOS) operators in the Lido operator in Ethereum.
If approved, the proposal will add the first third-party module for the lido staking router, further decentralization of the range of node operators using Lido, according to a March 4 announcement distributed to the cointelegraph.
SSV network proposal. Source: Lido
By seizing the DVT of the SSV Network network, the new staking module aims to enhance access and security, according to Alon Muroch, the founder and CEO of SSV Labs, a major contributing to the SSV network.
The module may increase the set of Lido node operator and improve staking risk, he said in cointelegraph, addition:
“For Nos, an unauthorized path to run a stake for Lido as well as a seamless way to combine DVT – strengthening their own operation.”
“For Ethereum, having more stake run by DVT makes Ethereum more resilient and decentralized (various geography, clients, and infra settings),” he added.
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The proposal will come three weeks after the Lido V3 debut, an upgrade designed to offer greater flexibility and composability for institutional ether (Et) Staking participants.
Staking infrastructure still requires significant improvement to attract greater participation from large financial institutions.
“The current infrastructure still has risks such as single points of failure and coordination issues,” Muroch said, and added:
“By using SSV, coordination is programmatically protected (for example, using DKG), which reduces human error, and by using DVT, institutions can increase performance and reduce downtime risk by distributing node operations between multiple nodes instead of relying on one node only.”
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“The DVT helps with the staking process and provides an ethical-aligned choice for players who are extremely conscious,” he added.
Source: SSV network Explorer
The SSV network is currently getting more than 2 million in staked ether, which costs more than $ 4.7 billion, by over 1,400 worldwide distributed node operators, SSV networks Explorer Shut up.
Ultimately, the SSV network’s proposal aims to benefit the decentralization of Ethereum Mainnet, Elad Gafini, manager of operation at the SSV Foundation, said: adding:
“The SSV Network Foundation invites the growing adoption of our unauthorized infrastructure, which expands access to Ethereum staking and strengthens Ethereum’s decentralization.”
“This suggested module marks a critical step toward safe, unbelievable participation for everyone in the staking ecosystem,” he added.
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