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SSV Labs suggests new staking module to expand Lido on Ethereum

SSV Labs suggests new staking module to expand Lido on Ethereum

Grafa2025/03/05 09:40
By: Liezl Gambe
LDO+0.05%SSV+0.10%ETH+0.05%

Clusterform, a subsidiary of SSV Labs, has proposed a permissionless staking module for Lido to decentralise and expand the network of node operators using the Lido protocol on Ethereum (CRYPTO:ETH).

According to a March 4 announcement, the proposal would integrate SSV Network’s Distributed Validator Technology (DVT) into Lido’s staking infrastructure.

If approved, this would be the first third-party module added to the Lido Staking Router, potentially improving risk mitigation and accessibility for node operators.

“For NOs, a permissionless pathway to run stake for Lido as well as a seamless way to integrate DVT — strengthening their own operations,” SSV Labs CEO Alon Muroch stated.

He added that distributing stake through DVT would enhance Ethereum’s resilience by diversifying operators across different regions, clients, and infrastructures.

The proposal follows Lido v3’s recent launch, which introduced new features to improve staking flexibility.

Institutional interest in Ethereum staking has also been increasing, especially after Donald Trump’s 2024 U.S. presidential election victory, with expectations of a more crypto-friendly regulatory environment.

Despite growing adoption, staking infrastructure faces challenges, including single points of failure and coordination issues.

“By using SSV, coordination is programmatically taken care of (e.g., using DKG), which reduces human error, and by utilising DVT, institutions can increase performance and reduce risk of downtime,” Muroch explained.

SSV Network currently secures over 2 million staked Ether, valued at more than $4.7 billion, with support from over 1,400 node operators worldwide, according to its network explorer.

SSV Foundation operations manager Elad Gafini emphasised the broader impact of the proposal on Ethereum’s decentralisation.

“This proposed module marks a critical step toward secure, trustless participation for all in the staking ecosystem,” he stated.

At the time of reporting, the Ethereum (ETH) price was $2,182.25.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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