Liquid staking protocol Lido Finance voted to approve a proposal incorporating Simple Distributed Validator Technology from the Obol Network.
The motion was passed on November 3 with more than 99% support. As a condition, the use of the Lido DAO coverage fund to finance modules was also approved, reducing fines and other costs.
“DVT represents the fastest way to add many new Node Operators to the Lido Node Operator set with a more diverse profile of solo and community stapler participants, while taking advantage of the technology’s inherent benefits such as increased resilience, distribution and security,” a Lido member wrote in the proposal.
“The Simple DVT module aims to demonstrate that using DVT on the mainnet is possible, while furthering the diversification of the Lido Node Operator on Ethereum and potentially paving the way for more scalable and permissionless DVT-based modules in the near future.”
‘An important step’
“This vote signifies support for the progress of this new module. This will be Lido’s first module using Obol DVs on the Ethereum mainnet,” Obol Labs, the company that built the Obol network, wrote on social media. “This module represents an important step towards strong diversification and decentralization of the Lido Node Operator set.”
The Obol Network, developed by Obol Labs, allows individuals to participate in an ecosystem of distributed staking validators.