Lido Finance recently had a proposal to integrate DVT technology from SSV Network and Obol Network. So what is interesting about Lido Finance’s proposal and how big is the potential of the two mentioned projects? Let’s find out together in the article below.
To understand more about Lido Finance, people can refer to some of the articles below:
- What Are Liquid Staking Derivatives (LSD)? Top 5 LSD Projects with Great Growth Potential
- What is Lido Finance (LDO)? Overview of Electronic Conveniences Lido Finance
- What is LSDfi? The First Puzzle Pieces & Potential In The LSDfi Array
- What is Distributed Validator Technology (DVT)? Overview of New Ethereum Technology
Lido Finance’s DVT Technology Proposal
Summary of Lido Finance’s proposal
It can be said that DVT technology is a simple technology and helps Lido Finance quickly reach many completely new Node Operators joining Lido Node Operator. It can be seen that DVT technology helps Lido in some critical points as follows:
- Strongly increase the number of extremely diverse Node Operators such as individual bettors, community leaders, organizations,… thereby improving the decentralization of the network.
- Increase security and improve durability for Validators.
Obviously, DVT technology will be the core technology of Lido V2 which is expected to be launched in the near future. In addition, Lido Finance’s DVT technology will be used by third parties SSV Network and Obol Network.
During initial deployment the number of clusters and validators running per cluster will be set to a minimum number (e.g. 24 clusters running 5 validators each). During this time Simple DVT Module Committee and Lido Finance’s DAO will monitor and evaluate performance and impact on Lido Finance. If DVT technology is effective, it will be scaled up further leading to an increase in the number of validators per cluster.
After at least 3 months of stable operation on the mainnet, the Lido Node Operator Subgovernance Group (LNOSG) will meet to discuss and potentially propose an increase in the number of validators operated by the cluster (e.g. 100 validators). real per cluster).
To encourage Node Operators to participate in the process of promoting the application of DVT technology, Lido Finance proposes to dedicate
- 2% is for service providers here: Obol Network and SSV Network.
- 8% is for Node Operators and DVT Providers.
All rewards coming to Obol Network, SSV Network, Node Operator and DVT Provider will be stETH.
This proposal was officially approved on November 3, 2023 and that is also the reason why Lido Finance’s price has been relatively positive recently. You can read the detailed proposal here.
Overview of SSV Network & Obol Network
SSV Network is an infrastructure platform that makes it easy for anyone to build a Validator on Ethereum based on DVT technology. SSV’s DVT technology allows it to divide the Validator Key into multiple Key Shares and then send it to many different computers to run Validator on many different nodes.
In February 2022, SSV Network successfully raised $10M with the participation of Digital Currency Group, Coinbase, Lukka, OKX Ventures,…
Next to SSV Network is Obol Network. Obol Network is a product of the Obol Labs group in a series of products on different technologies such as Internet Bonds, Distributed Validator Technology and Multi-Operator Validation.
A special thing about Obol Network is that most of the key members of the team have worked at large organizations in the Crypto market such as Binance, Consensys, Matrixport, Nethermind, SKALE,… and other organizations. Big organizations in Web2 such as Walmart, Adobe,… Most especially Consensys – one of the giants building infrastructure for Ethereum.
In addition, Obol Network also raised $12.5M in the Series A round with the leadership of Pantera Capital and Archetype in addition to the participation of many big names such as Spartan Group, Nascent, Etherenal Ventures, Swiss Staking, etc. .
Lido V2 Will Bring DVT Technology To Light
In fact, without Lido Finance, sooner or later DVT technology would quickly become popular thanks to the breakthrough applications it brings. However, with the problems in Lido V1 version, one of the ways to help Lido quickly transform and regain market share from Rocket Pool, Frax Finance, Stader Labs, Binance, Coinbase,…
With DVT technology we will no longer see a centralized Lido, a Lido that seriously affects decentralization on the Ethereum network. With DVT technology, Lido Finance can help Ethereum expand decentralization with thousands of nodes around the world and no need to worry about having a Validator, Protocol,… holding too much ETH in staking .
There’s nothing better than being introduced by Lido Finance and whoever wins the flag, this time it’s SSV Network and Obol Network. Reality shows that, as soon as there were discussions on the topic of DVT, the price of SSV Network had an impressive growth from less than $4 to a peak of nearly $50 in the early part of 2023. In the context of both The market is looking for a bottom at the end of 2022 but SSV’s price is still active and positive. If considering only in 2023, SSV will grow from $10 to $50. After the price peaked, the price of SSV had a relatively strong decrease.
Besides SSV Network and Obol Network, the project has not yet released Tokens.
Summary
Lido Finance is one of the strong driving forces behind the widespread adoption of DVT technology in the Crypto market.
