Notification: Pier Two Key Limit Increase

Node Operators
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Following recent inflows into the Lido protocol, the number of available depositable validators in the Simple DVT Module has dropped below 500. Meanwhile, the Community Staking Module (CSM) is currently at capacity, pending the upcoming CSM V2 upgrade.

Due to the protocol’s deposit allocation mechanism which prioritizes smaller modules first, Pier Two, a Curated Node Operator onboarded after the acquisition of Numic six months ago, has not yet received any validator deposits.

Pier Two currently holds a 100-key limit, in line with historical practice whereby newly added Curated Operators begin with a limited number of depositable keys to demonstrate performance.

However, given the timing of inflows and the expected increase in module share limits (notably for CSM and the forthcoming SSVLM), Pier Two has indicated a desire to go up to 1,000 depositable keys in lieu of waiting at 100 as is historically the case.

This proactive step is intended to position Pier Two to receive validator deposits in the near term, especially in the event of another wave of outflows ahead of broader capacity expansions.

Pier Two brings extensive experience in running mainnet validators across protocols and for their own clients. They have also served as a Cluster Coordinator across multiple Simple DVT clusters where they participate in operating over 750 validators, further demonstrating their strong operational and technical capabilities as a Node Operator.

Based on these circumstances, NOM contributors believe that such a motion would be reasonable as they are essentially already well-versed with the Lido protocols operations. In any case, since the key limit increase would occur via an Easy Track motion, tokenholders can always object.

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Thanks for the proposal. I fully support it and believe it is aligned with Lido’s mission to make Ethereum more decentralized!

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I also don’t see a problem in increasing the number of keys, but I don’t quite understand how this number is currently determined.

I understand why the starting number is 100 keys, but why not 300 or 2000 later?
How does this even work in the direction of increasing?

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The limit is fairly flexible to increase to the upside, as it is done using the Easy Track optimistic governance process.

Once keys are activated and determined to be performing well, Pier Two can continue to increase their key limit as they would like, however the first batch should be limited to some extent (in this case for up to 1,000 keys).

However, since the original post was published, Pier Two has had 11 keys deposited to, which was followed by a large withdrawal request.

Assuming no large inflows to offset the pending withdrawal request in the buffer over next few days, in practice this means the first Pier Two validators will activate and they will have the opportunity to make sure that there were not any issues before new keys are deposited to. If that is indeed the case, it will further lend strong reasoning for Pier Two to continue to increase their key limit.

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Dear Lido community

Pier Two has created a motion to increase the limit to 1,000 depositable keys.

The Pier Two team is excited to begin this important work as part of the Lido Curated Operator Set, which was successfully voted For (100%) in the proposal to ratify the non-objection to Pier Two’s operational continuation post-Numic acquisition, in November 2024. Which followed the proposal submitted in August 2024.

In relation to Pier Two’s experience and capability:

  1. Pier Two, established 2018, is a top performing institutional staking services provider. Working primarily with funds, custodians and exchanges via the Pier Two Control Centre app and Staking APIs to ensure secure access to staking on top networks.
  2. Pier Two is already participating in the Lido protocol through the Simple DVT Module (both on testnet and mainnet), using DV infrastructure such as SSV and Obol, and participating in a number of clusters on each.
  3. Pier Two has a global team with 24/7 monitoring, alerting, and on-call engineers. Accordingly, the geographical diversity of node operators using Lido on Ethereum will be strengthened.
  4. Pier Two brings further security standardisation, being ISO 27001:2022 and SOC 2 Type I certified while also currently working toward NORS and SOC 2 Type II certifications, both expected this month (June 2025). Pier Two’s security posture bolsters Lido’s security position.
  5. Pier Two aligns closely with Lido’s purpose statement by building an Ethereum light and beam chain client called Lantern, with a vision to keep Ethereum free to access and globally available.
  6. More about Pier Two here.

Pier Two would be happy to answer any questions the community may have in the below thread.

Pier Two

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