Epoch Forge x Lido DVT Testnetโ
We have been busy building alongside the Ethereum community as active participants in the third round of Lido's integration of the SSV Network on Holesky! We are a member of a cluster of European-based, professional and independent node operators who are testing the new Community Staking Module (CSM) for Lido. This is a huge step forward for decentralizing node operation as Lido represents the largest staking pool on the network.
Here is a link to our operator page!
The CSM offers a competitive risk adjusted profile, by further diversifying the Lido node operator set from 37 operators to potentially hundreds. The risk of accepting more operators to the active set is mitigated by DVT, where each operator is only a small piece of a larger cluster that runs any given validator. This is to the benefit of both stakers on Lido's platform and to the network as a whole. Learn more about Lido's CSM and its economic model here.
Distributed Validator Technologyโ
With the Proof-of-Stake industry growing rapidly, many groups are trying to quantify risk in the space. Particularly, Rated is actively working on systems that try to classify the Ethereum staking landscape on the operator side. What they have found is significant concentration risk around large-scale professional operators.
Epoch Forge believes that DVT is the future of staking digital assets because it significantly reduces risk while only marginally increasing operational cost. DVT allows for stakers, staking products, companies, organizations and individuals to craft clusters of operators that are diverse. The operators chosen in a given cluster can be tailored to best reduce the risk profile for the staker.
While we are actively researching best practices for cluster creation, knowing that this is still nascent technology, we do have some initial thoughts and observations. For example, there are several factors that are often talked about in the community, like client and geographic diversity of the operators. But then there are less obvious factors, like infrastructure resiliency, key management, efficiency, and tail-risk control. This wholistic approach to risk management is one of the key elements of Epoch Forge that makes us a great DVT partner.
Stake with Usโ
We will be on SSV mainnet when it goes live for permissionless entry, and then you will be able to select Epoch Forge as an operator when building your Ethereum operator cluster. In the meantime, if you are looking for a secure, tailored approach to Ethereum staking, reach out to Epoch Forge at info@epochforge.com or reach out to our team on LinkedIn.