SSV Network proposes decentralized staking module for Lido on Ethereum

SSV Network proposed a new permissionless staking module for Lido, aiming to improve decentralization and staking infrastructure for institutional participants.

SSV Network proposed a permissionless staking module that leverages SSV’s Distributed Validator Technology (DVT) to integrate node operators (NOs) into the operator set of Lido on Ethereum.

If approved, the proposal would add the first third-party module for the Lido Staking Router, further decentralizing the set of node operators using Lido, according to a March 4 announcement shared with Cointelegraph.

By leveraging SSV Network’s DVT, the new staking module aims to enhance staking accessibility and security, according to Alon Muroch, the founder and CEO of SSV Labs, a core contributor to the SSV Network.

The module may further increase Lido’s node operator set and improve staking risk mitigation, he told Cointelegraph, adding:

“For NOs, a permissionless pathway to run stake for Lido as well as a seamless way to integrate DVT — strengthening their own operations.”

“For Ethereum, having more stakes run through DVT makes Ethereum more resilient and decentralized (different geographies, clients, and infra setups),” he added.

Institutional interest in Ethereum staking grows

Institutional appetite for Ether staking products has been growing since Donald Trump’s victory during the 2024 US presidential election, partly due to expectations of a more crypto-friendly regime in the country over the next four years.

The proposal comes three weeks after the debut of Lido v3, an upgrade designed to offer greater flexibility and composability for institutional Ether (ETH) staking participants.

Staking infrastructure still needs significant improvement to attract more participation from large financial institutions.

“Current infrastructure still has risks like single-points of failure and coordination issues,” Muroch said, adding:

“By using SSV, coordination is programmatically taken care of (e.g., using DKG), which reduces human error, and by utilizing DVT, institutions can increase performance and reduce risk of downtime by distributing node operations between multiple nodes instead of relying on just one node.”

“DVT helps de-risk the staking process and provides an Eth-aligned option for players that are extra risk-conscious,” he added.

SSV Network currently secures over 2 million in staked Ether, worth over $4.7 billion, through over 1,400 globally distributed node operators, SSV Network explorer shows.

Ultimately, the SSV Network’s proposal aims to benefit the Ethereum mainnet’s decentralization, said Elad Gafini, operations manager at SSV Foundation, adding:

“The SSV Network Foundation welcomes the growing adoption of our permissionless infrastructure, which expands access to Ethereum staking and reinforces Ethereum’s decentralization.”

“This proposed module marks a critical step toward secure, trustless participation for all in the staking ecosystem,” he added.