Demand for Ethereum staking secured by Distributed Validator Technology (DVT) is heating up. Evidence of this trend can be seen in the latest figures released by SSV.Network, one of the infrastructure projects advancing the technology’s implementation.
Almost $150M in ETH is now locked into staking contracts secured by SSV. Over 2,000 Ethereum validators are using SSV.Network, which records a total of over 67,000 ETH staked. Around 80 operators are currently using SSV’s mainnet to access DVT-based staking.
Staking Apps Launch on SSV
Despite its mainnet only being a few weeks old, SSV.Network is already seeing robust demand for its services. The growth has been augmented by an array of staking applications that have launched and which make use of SSV’s technology. Claystack, Metapool, Stake Together, 01Node, StakeStar, and StaFi are among the apps to have debuted on the SSV mainnet.
To incentivize adoption, the SSV DAO is providing an APR boost of up to 50% for validators that utilize the network, be it directly or through third party applications. Adoption of SSV’s DVT implementation has also been helped by major staking pools including Lido electing to introduce the technology.
Staking Ecosystem Gets Stronger
The liquid staking industry on Ethereum is in rude health with over $26B locked into protocols such as Lido and Rocket Pool. These protocols allow users to stake small amounts of ETH if desired and to withdraw their stake at any time in return for collecting a small fee from the yield obtained.
Because staking protocols tend to use the same validator sets, however, there is a risk of centralization creeping in. DVT has the potential to solve this problem by making it safer to use a more distributed validator set. In turn, this increases decentralization, making the network harder to attack.
Strength in Numbers
SSV’s DVT implementation is designed to increase infrastructure diversity and support greater uptime. The open source technology is free for third party developers to utilize. A number have already taken the opportunity to create apps catered towards specific sections of the staking market, be it institutional clients or solo stakers.
By allowing validators to distribute operations across a greater number of node operators, DVT supports a strong and reliable network. The SSV DAO oversees the protocol, helping to direct rewards and provide grants for the development of apps that will further enhance its growing staking ecosystem.
Since the start of December, public validators have been free to join SSV.Network and distribute their staking load to numerous node operators. Node operators, meanwhile, can earn SSV rewards for providing staking services. While SSV’s growth has been impressive since launch, its team is confident the current TVL is just a fraction of what’s to come as more Ethereum staking operators embrace DVT.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/12/dvt-powered-ethereum-staking-heats-up-as-ssv-nears-150m-tvl