Since the introduction of the Staking Router, Lido has been announcing its intention to decentralize the operators that actually run validators using the protocol. Two upcoming distinct initiatives to be plugged to the Staking Router are the SDVTM (Simple DVT Module) and the CSM (Community Staking Module).
Dappnode users will be able to participate in both modules and receive validator rewards in wstETH from running validators as a part of Lido, the biggest staking protocol on Ethereum, while boosting decentralization.
Understanding Lido's Decentralization Modules: SDVTM and CSM
To simplify, SDVTM mitigates the risk of operator maliciousness or failure by having multiple operators run the same validators through DVT. It basically means that it uses a multisig for the validator keys so if some operators are down, the rest of the DVT cluster that runs the same validator can pick up the slack. It’s a permissioned module.
CSM, on the other hand, will take an approach closer to Rocket Pool or Stakehouse: the Node Operator will have to put up a bond of some ETH so in case it does not perform their job satisfactorily, the losses that the protocol may incur due to this bad performance can be taken out of the bond. It is going to be a permissionless module.
CSM is still in development, but SDVTM is a reality right now, so we’re going to be focusing on the more mature option and how Dappnode users can take advantage of it.
CSM is still in development, but SDVTM is a reality right now, so we’re going to be focusing on the more mature option and how Dappnode users can take advantage of it.
Opportunities for Dappnode Users: How You Can Contribute to Lido's Decentralization Efforts
As explained above, SDVTM is a permissioned module, which means that the Lido DAO chooses which operators will participate in the DVT clusters running the validators. The way they choose them is via test runs and an evaluation process: they set up clusters in testnet and monitor the performance of the operators. If their performance is positive and they are proposed to move forward by the DAO, they can move on to be a mainnet SDVTM operator.
These test runs are already happening and for those Node Operators that are part of it, they will be able to use Dappnode to manage the software that these testnets (and later on, mainnet) require. Dappnode is currently working and testing these SDVT and CSM packages and these will be ready in time for the upcoming round of Lido’s tests.
If you are not part of these test runs, you still have the chance of applying via this form to run validators via SSV Network, and we highly recommend you to do it!
Who is this opportunity for:
- For everyone that is willing to commit to keeping their Dappnode online for 3 years (this is the expected duration of each batch of SDVTM operators).
- For those looking to receive rewards from successfully running validators via the Lido protocol.
- For those who are already running validators and want to receive more rewards from their existing setup.
- For those who have been accepted to a SDVTM testnet or mainnet and want to use Dappnode to manage their Nodes and DVT software
If helping the decentralization of Ethereum and receiving validator rewards sounds exciting to you, apply for the Lido DVT Testnet by filling this form.
If you don’t have a Dappnode yet, install it in your machine or buy a Dappnode Home!
