Community Staking Module

[Izzy]

@FelixLts

I believe Lido DAO decision-making on stake distribution should be disconnected from module development and acceptance proposals and requires its own mechanism to ensure a long-term optimal and sustainable solution.

This is what I am taking an initial deep dive into via recently LEGO-approved Staking Router Distribution Mechanism research. I invite people interested in this topic to join the conversation and communication channel established around it linked in the thread!

I think it’s a bit less about competition and more about addressable market size + taking into account the relationship between “bond-bearing” stake and unbonded stake the balance between them, and allowance for other likely bonded modules in the future. I know we use the “target share” phrasing, but I think it’s more accurate to think of this as a “stake share ceiling” rather than a “target” share. It’s very likely that multiple modules may eventually have 100% “target share” parameter values – it just basically means that the mechanisms of the modules are sustainable and battle-tested enough to be able to accommodate 100% of the protocol’s stake if needed and the supply+demand conditions and constraints are met. Which is why a more mature and intelligent distribution and reallocation mechanism will be needed by that time as well!

Regarding SR distribution and re-allocation mechanisms, while the research is important I’d just couch this desire with a consideration for timeframes here. Given the complexity of major changes to stake distribution mechanisms in the SR, I think these changes would be unlikely to affect what the mechanisms will likely look like in the next 12 months or so.

[FelixLts]

Makes sense and fully agree to the last point. This is likely going to be a longer journey to see through if some decision is reached and implemented, so some intermediate solution will definitely be needed.

[dgusakov]

Hello everyone!

I’m glad to share an intermediary document describing a possible approach to the bonding mechanism for CSM and probably some other staking modules. The approach is called Simple Bond. As the name indicates, this is a limited yet viable approach to implementing a bonding mechanism on the staking module level.

In the document, one can find not only a description of the Simple Bond but also alternatives considered.

Given the limitations of the Simple Bond compared to a more robust in-protocol bond approach, it is assumed that it will only be used for modules of a limited scale. I hope Lido contributors will be able to provide exact numbers later.

Bond Mechanics in Lido - HackMD

Community feedback and questions are appreciated!

[dgusakov]

Another day, another update!

Lido CS contributors are thrilled to present a working draft of the CSM Architecture

🏛️ CSM Architecture - HackMD

This document covers the main design aspects regarding possible CSM implementation. It corresponds to the initial CS Landscape document.

As for the next steps, Lido CS contributors will finalize the document and proceed with the development of the module code.

Community feedback and comments are appreciated!

[Obol.Labs]

Embracing the Future of Staking with Obol Techne Credential Holders and Lido’s CSM

Hey Lido Community!

In our previous communication, we expressed our enthusiastic support for the Community Staking Module (CSM) and its potential to revolutionise Ethereum staking. As pioneers in Distributed Validator Technology (DVT), we at Obol Network highlighted how DVT can enhance the resilience and performance of solo stakers, thereby levelling the playing field and providing the technical infrastructure necessary for a more inclusive staking environment.

Recap of Our Ongoing Commitment

Our commitment to the CSM is driven by our core mission to advance the Ethereum ecosystem through innovative, decentralised solutions. Distributed validators (DVs), which we’ve championed and refined, represent a critical step forward in achieving these goals. By ensuring uptime, security, and performance, DVs are ideally suited to support the robust and decentralised nature of the CSM.

Why Techne Credential Holders are Ideal for CSM

The Obol Techne Credential Program is designed to identify and elevate those who have demonstrated skill and reliability in operating distributed validators. These individuals are proficient, and uphold industry standards and commitment to the Ethereum staking ecosystem.

We see Techne Credential holders as prime candidates to be node operators within the CSM. Their proven experience ensures that the CSM can achieve high-quality adoption right from the start, aligning with Lido’s mission of making staking simple, secure, and decentralized.

Supporting Early Adoption

To facilitate this, we encourage early adopters of the CSM to consider Techne Credential holders for node operation roles. These operators bring a wealth of experience and a track record of high performance, backed by on-chain credentials that attest to their capabilities.

Learn More and Get Involved

Interested in becoming a part of this transformative initiative? Whether you’re looking to earn a Techne Credential or explore how Techne holders can contribute to the Ethereum ecosystem, here are some resources to get you started:

Obol Techne Credential Program Overview

Current Wave Agenda & Status: Join the wave and start your journey!

Quickstart Guide to Distributed Validators

We’re excited to see how Techne Credential holders will help shape the future of decentralised staking through the CSM. Join us in this journey to empower a more robust and inclusive Ethereum ecosystem.

Looking forward to your feedback and engagement!

[dgusakov]

Thanks for the support of CSM!

I fully agree that Obol Techne credentials holders should be proposed to the Lido DAO to be Early Adoption participants.

[dgusakov]

A draft version of the CSM spec is now available.

Preliminary versions of the smart contracts code are available in the GitHub repo as well as Oracle code and CSM Prover Bot code.