NodeDAO - Ethereum DVT Solution

NodeDAO and SSV.Network build a complete liquid DVT staking solution for Ethereum

About NodeDAO and SSV.network

NodeDAO provides decentralized blockchain staking liquidity services, including Ethereum staking. It runs as a smart contract for next-generation derivatives, with permissionless drivers, re-staking, and distributed validation mechanisms.

SSV.network is a fully decentralized Ethereum staking network that leverages Secret Shared Validator (SSV) technology to enhance validator key security and promote decentralization. It benefits Ethereum stakeholders, including staking pools, services, and individual stakers, by providing active-active redundancy and strong security measures.

Learn about the DVT solution

The DVT solution uses the DKG protocol to encrypt and distribute validators’ private keys among participants. This approach allows multiple operators to jointly run validators without exposing their keys to any single entity. In addition, the re-sharing protocol ensures secure redistribution of keys between different parties, while the blame mechanism identifies dishonest parties to prevent potential attacks.

Benefits

Expected to launch in the first half of 2023, the DVT solution addresses security issues posed by Ethereum’s updated blockchain while promoting decentralization. By allowing multiple node operators to jointly run validators, the solution enhances robustness and fault tolerance, reducing the risks associated with system downtime or infrastructure issues. In addition, it promotes greater decentralization of Ethereum staking by preventing any single entity from controlling the majority of validators.

NodeDAO integrates SSV Network's validator management scheme

This scheme facilitates the launch of validators, which is critical to improving the reliability of validators and advancing the decentralization of Ethereum validators.

• Select SSV operators: NodeDAO will be responsible for selecting SSV operators to participate in the DKG process. These operators will play a key role in generating the key shares required for Ethereum validator registration.

• Bear SSV costs: NodeDAO will bear the costs associated with SSV operations, including transaction fees/SSV network fees for validator registration/exit. This reduces complexity for users and operators, allowing users to not need to pay attention to how validators are run, while still receiving the APR increase from SSV.

• Coordinate the DKG process: NodeDAO will coordinate the entire DKG process, oversee the launch of the ceremony and facilitate communication between operators.

• Managing validator deposits: As part of the DKG process, validator deposits are required. The NodeDAO will manage these deposits, ensuring they are handled securely and in compliance with the protocol.

• Coordinate validator exits: In addition to managing deposits, the NodeDAO will also coordinate validator exits when necessary. This involves handling withdrawals of deposits and ensuring that users can smoothly unstake their staked ETH.