Simple DVT Overview

📝 Summary

The Simple DVT Module (SDVTM) facilitates the battle-testing of Distributed Validator Technology (DVT) on the Ethereum mainnet, utilizing both Obol and SSV Network implementations. This module acts not only as a foundational step towards the integration of more scalable and permissionless Lido DVT-based modules in the future but also aims at expanding the node operator (NO) set with the first home and community stakers to use the protocol to run validators. DVT brings to the table advantages such as enhanced resilience, diversity, and security for the Lido validator set, further underlining its importance in achieving a broader and more robust network of NOs.

Onboarding for Simple DVT has concluded. The onboarding began in Q4 2023 with both SSV and Obol testnets, and after five onboarding rounds, the program successfully reached a total of each 36 Obol and SSV clusters as well as 5 Obol and SSV super clusters.

You will find a list of all clusters and participants in the SDVT Registry.

🔭 Vision

The ultimate goal for this module is to pave the way for scalable, permissionless DVT-based modules, enhancing the decentralization, accessibility, and censorship resistance of Ethereum staking. By successfully demonstrating DVT in action, a broader and more inclusive node operator community has been fostered around Lido on Ethereum, contributing to a robust and resilient Ethereum staking base layer.

📜 Status

<aside> 🟢 Simple DVT Module on mainnet is live

</aside>

<aside> 🟢 Simple DVT Module on Hoodi is live

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• Vote Details:
  • Snapshot vote Staking Router Module Proposal: Simple DVT (approval)
    • Staking Router Module Proposal - Simple DVT
  • On-Chain vote Lido Vote #172 (module deployment)
    • Simple DVT Release
  • Snapshot vote Expanding the Simple DVT Module (approval)
    • Expanding the Simple DVT Module

🏷️ Characteristics

• Operators Onboarding: Permissioned (note: testnet participation is a pre-requisite)
• Bond Required: None
• Rewards Rate:
  • Normal Clusters:
    • 10% total rewards share, broken down as:
      • 2% allocated to treasury
      • 8% to the module (further shared between Node Operators, and the DVT infrastructure provider)
  • Super Clusters:
    • 10% total rewards share, broken down as:
      • 4% allocated to treasury (2% via splitter contracts)
      • 6% to the module (further shared between Node Operators, and the DVT infrastructure provider)
• DVT: Yes, clusters currently utilize Obol and SSV Network
• Stake Share Limit: 4%, subject to further increases by the DAO

Mainnet Registry (All Participants & Clusters):

• Obol Clusters
• SSV Clusters
• SDVT Registry

Address List – Reward and Split Contracts

• Obol Clusters
• SSV Clusters

Testnets:

| --- | --- | --- |

⚙️ Mechanisms

🛫 Deployments

Mainnet contracts:

• Simple DVT Module Proxy
• Simple DVT Easy Track Factories
• SDVTMC multi-sig SAFE

💹 Economics

The economic model of the Simple DVT module is structured to incentivize participation while ensuring the module's sustainability within the Lido ecosystem.

This balance aims to reward participants and maintain the overall health and security of the protocol.

Initially, the module's capacity was limited to 0.5% of total Lido protocol stake, however, it was subsequently raised and currently stands at 4% of stake share limit after a proposal on the forum and subsequent successful Snapshot and on-chain vote.

🎁 Rewards Share & Incentives

The reward share system for the Simple DVT module is designed to support ongoing development and maintenance while appropriately compensating contributors. A total of 10% of staking rewards is allocated for this purpose, divided into:

• 2% to the DAO Treasury
• 8% to the Simple DVT module

This 8% module share is directed to Node Operators and DVT providers, reflecting the operational and economic differences inherent in DVT clusters compared to individually operated validators. Unlike the Curated Module, which splits its 10% reward share evenly (5%/5%), the Simple DVT module allocates a greater share to NOs and DVT providers. This structure acknowledges the additional complexity and collaborative effort involved in managing DVT clusters, as well as the module’s intention to support a smaller set of validators over a 2–3 year period.