Lido's Simple DVT module goes live on Ethereum mainnet

5/2/2024 by Luca Winter, Founder & CTO
Lido's Simple DVT module goes live on Ethereum mainnet - article thumbnail
Lido's Simple DVT Module

Lido is currently the largest liquid staking protocol on Ethereum. Until now Lido's validator set was run by a small set of curated professional node operators in what is known as the Curated module.

The Simple DVT module is Lido's second protocol module and provides an opportunity for many new operators to participate in running validators for the Lido protocol. This new module underwent thorough testing over the past few years. Serenita actively took part in the 3rd Obol testnet (Agile Antelope cluster) and 3rd ssv.network testnet (Boastful Picnicker & Knowing Soup clusters) taking on the role of cluster coordinator, ensuring everything went smoothly over the course of the testing period.

The Simple DVT module has now been deployed and activated on the Ethereum mainnet. A total of 139 new node operators will join Lido's active operator set through this new module. Serenita is proud to be part of the first cohort of mainnet DVT clusters!

What we like most about this new module is its potential to enhance client diversity on Ethereum. Each member of a DVT cluster can run a different client combination. Validator duties are performed only when all these combinations agree on the chain's state.

Distributed Validator Technology (DVT)

In the background the module uses distributed validator technology (DVT) developed by Obol Labs and ssv.network. DVT technology makes it possible to perform validator duties in a distributed fashion - multiple node operators cooperate to perform them.

DVT works because of the aggregation properties of the Boneh-Lynn-Shacham (BLS) digital signature scheme. Thanks to these properties we can create several partial validator private keys which, when combined, are indistinguishable from a full validator private key. This allows us to split up the validator between several independent parties - node operators. These node operators then work together to perform the validator's duties.

But that's still not the best part. It's possible to create the partial keys in a way where not all of them are needed to perform validator duties. This is called threshold signing and is similar to something akin to a 3-of-5 multisig wallet. In this way we can create a 5-of-7 validator where only 5 of the 7 partial validator keys are necessary to perform a duty. Up to 2 members of this kind of cluster can be offline while the validator continues to chug along!

It's important to note that while the threshold could in theory be set as low as 1-of-7, this is undesirable when applying this technology to Ethereum validators due to the slashing conditions. With a 1-of-7 threshold, each of the 7 partial keys could sign different attestation data leading to a slashing penalty. This is why you'll usually see a >50% threshold being used making it impossible to sign conflicting attestations.

We at Serenita are very excited about distributed validator technology. It brings numerous benefits to the table including higher uptime (a validator is only offline if several of its operators are offline) and drastically reduced slashing risk (a validator cannot get slashed through the actions or mistakes of a single operator). We're looking forward to more validators being run by a diverse operator set thanks to DVT!

About Serenita

Serenita is a leading blockchain infrastructure operator specializing in secure and reliable solutions for managing and growing digital assets, with a primary focus on Ethereum staking. Our seasoned team combines years of experience, technical expertise, and industry knowledge to ensure optimal performance and best-in-class digital asset security. Serenita is committed to contribute to the broader ecosystem by continuing to support home stakers, running minority clients and taking any future measures that benefit the network at large.

We guide our customers through the technical complexities of Ethereum staking, providing non-custodial solutions with the flexibility to stop staking at any time. Reach out to discover how Serenita can help you manage and grow your digital assets, providing expert-driven solutions tailored to your needs.