Anyone with the will and the technical ability is free to run their own Ethereum validator and connect to SSV.
Ethereum stakers are rapidly warming to Distributed Validator Technology, which is becoming a mainstay of the staking landscape. Following its introduction by SSV.Network, staking operators, and validators have been swift to embrace the technology for the benefits it brings in terms of performance and security.
$150M is now staked in SSV either directly or through third-party apps that use the network’s open-source technology. This constitutes over 67,000 in staked ETH with 2,000 validators and around 80 staking clients currently making use of SSV’s DVT implementation.
The Rise of DVT
DVT allows Ethereum validator operations to be assigned to numerous independent operators instead of relying on just a handful of dominant players. Validators running on SSV are split between independent operators, creating greater fault tolerance and increasing decentralization. Anyone with the will and the technical ability is free to run their own Ethereum validator and connect to SSV. The technology is designed for solo stakers as much as it is for institutional clients.
Because third parties can build staking apps upon SSV’s network, there is scope for endless customization and personalization. 01Node, StakeStar, and StaFi are among many projects that have already developed SSV-powered apps that make use of Distributed Validator Technology. Claystack and Metapool have also gotten in on the act.
In addition to projects building on SSV.Network, others are implementing its technology into their current staking infrastructure. This allows them to prevent disruption to their existing staking operations when introducing DVT. Staking heavyweights such as Stader, StakeWise DVT vaults, ChainUP, ANKR, XHash, and Lido through its Simple DVT Module have started testing and using the technology.
Industry Analysts Are Bullish on DVT
In its crypto theses report for 2024, analyst Messari is bullish on DVT, highlighting some of the liquid staking protocols that are implementing the tech “to make their staking products and Ethereum staking itself more robust.” As dominant staking providers such as Lido increase their TVL, the need to balance convenience with decentralization, to prevent single points of failure, is imperative. DVT provides one way to address this by reducing reliance on narrow validator sets.
There are currently added incentives for Ethereum validators to explore what DVT has to offer. The SSV DAO has approved a 50% APR boost for validators that connect to its network in the form of SSV rewards. As for the incentives to integrate DVT, as SSV.Network explains, “DVT facilitates the distribution of validator operations across independent operators, leveraging QBFT consensus protocol and threshold signatures. These technologies foster a secure, robust environment for flawless execution of validator operations.”
This results in greater uptime, improved fault tolerance, and a network that is stronger from the protocol level all the way up the stack.