The Decentralized Staking Module of the Obol Network Is Adopted by Lido Finance
In an effort to increase diversity and security in node operations, Lido Finance has accepted the use of the Simple Distributed Validator Technology from the Obol Network.
The partnership with Obol Labs is a major milestone in the movement to make staking accessible to more people and spread the benefits of strong decentralization across the Lido Node Operators.
Lido Finance, a well-known liquid staking protocol, has approved a critical request to integrate the Simple Distributed Validator Technology (DVT) created from the Obol Network, a development widely hailed as a game-changer in the world of decentralized finance. This significant move is expected to transform the landscape of node operations, providing increased diversity, resilience, and security.
The overwhelming majority of the Lido Finance community agreed with the idea on November 3, as seen by the 99% vote in its favor. This wasn’t the only conclusion reached; the Lido DAO’s cover fund was also agreed upon. This reserve is intended to cover the costs associated with module downtime fines and other unanticipated costs that may arise during module operation.
A spokesman from Lido Finance shed light on the reasoning for the broad clearance, saying, “DVT stands out as the most efficient pathway to usher in a diverse range of new Node Operators into the Lido Node Operator fraternity.” It’s not just about having a large population; diversity, including both individual and group investors, is key. In addition to more diversity, using this technology means wider dissemination and stronger security.
Lido Finance has integrated the Simple DVT module since it is an integral part of their long-term strategy. This development is strategically situated to enhance the Lido Node Operator set on Ethereum, opening the path for following modules that might be both more scalable and run on a permissionless basis, anchored in DVT.
The proposal elaborated on the bigger picture by stating, “The Simple DVT module is intended to demonstrate that utilizing DVT on mainnet is possible while further diversifying the Lido Node Operator set on Ethereum and possibly setting the stage for more scalable and permissionless DVT-based modules shortly.”