Staking Router Module Proposal: Simple DVT

Hello everyone, the following post contains an update on the status of the ongoing Simple DVT testnets with Obol and SSV Network. It also contains additional information related to the processes currently being used on the Holesky testnet, which are intended to be replicated on mainnet.

One recurring challenge faced, that will be mentioned in this update and discussed more extensively in future blogs posts, was an underappreciated lack of battle-tested community infrastructure for the Holesky testnet at the beginning of both the Lido Obol and SSV testnets. This includes key infrastructure such as SAFE, MEV-Boost, and relay infrastructure that, while well-established on the Goerli testnet, were only deployed on Holesky near the same time the trials began (some of which was supported by LEGO in order for it to happen), causing some issues.

Nevertheless, the overall testnet process to date for both Obol and SSV has gone smoothly (or as smoothly as coordinating with hundreds of participants running 448 nodes can be); with hundreds of individuals and organizations participating, there’s clear enthusiasm to move forward to mainnet.

The Simple DVT module represents the fastest way to enable hundreds of net-new Node Operators to use the protocol in 2024. Should the DAO vote to deploy the module to mainnet in Q1, the protocol could see 100+ net new Node Operators using the Lido protocol to run validators in less than three months.

As a reminder, the Simple DVT Module Proposal calls for a 30 - 45 day monitoring period. For both the Obol and SSV tesnets, the best consecutive performance of 30 - 45 days starting from the activation of validators or for the time period prior to the exit of validators will be used as the performance result and compared to the outlined benchmarks of Uptime of at least 95%, Block Proposal Success Rate of 70%, and Attestation Effectiveness per Rated Network comparable of that with the broader Holesky validator set.


The Obol testnet began on November 3rd comprising 32 clusters with a 5/7 threshold configuration, with a total of 214 total participants.

In some cases, cluster participants were replaced due to backing out or lack of adequate presence. After going through the validator setup process and running the nodes for ~8 weeks, a total of 196 individuals and organizations are expected to have participated in the full testnet process. This near final count of participants includes over 100 solo and community stakers.

Each of the 32 clusters initially started with 5 validators and, after a performance monitoring period, key limits were raised to 50 validators each. During the subsequent monitoring period, it was observed that while Uptime and Attestation Effectiveness were well above the network benchmarks, the Block Proposal success rate was lagging below the 70% threshold set during the original module proposal. At this point, analysis of the missed proposals identified four issues: 1. General NO misconfigurations, 2. Cluster latency, and two issues related to the early-stage nature of Holesky deployments, 3. Issues with Holesky relays, and 4. Lack of MEV-Boost support.

Shortly after the commencement of the testnet, the Obol team deployed an upgraded version of Charon, v0.18.0, that included support for MEV-boost (vs. prior direct connection to relays via the CL client) and began troubleshooting with the relay teams.

Concurrently, one of the clusters, Glacial Gull, had two members leave the testing round. It was determined at that time that the validators from the cluster should be exited and re-created via DKG with replacement members. The Crimson Coyote cluster also had a member leave the testnet, though the cluster continued to run with 6 participants.

Following a Charon upgrade which improved Block Proposals success rate, and further performance analysis, the validator limits for the vast majority of clusters were raised to 100 validators, while the Glacial Gull and Crimson Coyote clusters remained at 50 validators.

Over the course of December and early January, improvement was observed in the aggregate Block Proposal Success Rate, and for the 45 day monitoring period of November 28th - January 11, the metric stands at 71.2%. In the 7 days prior to this post going live, the daily aggregate Block Proposal Success Rate has remained at 85% or above for 6/7 days.

The first Obol cluster was exited on January 12th, and the remaining Obol testnet participants will begin exiting validators and testing the staking reward claiming process later this week.

An extensive update regarding the trial will be posted on in the following weeks.

SSV Network

The SSV testnet began on November 22nd and includes 32 clusters with a 5/7 threshold configuration, and a total of 192 participants.

During the end of November and early December, clusters coordinated to create Holesky SAFEs representing their clusters in the Simple DVT Node Operator Registry and participants set up their SSV Operators and DKG nodes. Unfortunately, due to infrastructure and tooling issues on Holesky due to its recent deployment, an issue was discovered between Holesky SAFE, Walletconnect on Holesky, and the SSV Webapp. Due to the timing of the holidays, the testnet was put on pause until January 3rd. As of today, 175 individuals and organizations are participating in the resumed testnet.

Over the break, SSV deployed an upgrade to their DKG tooling that significantly improves the efficiency of the process for participants. Over the following weeks, Node Operators updated their DKG nodes and clusters began the DKG process and key submission to the Simple DVT Node Operator registry for their initial 5 validators. So far 26 of 32 clusters have had 5 validators deposited to, and the remainder are expected to be running by the end of the week.

More information regarding the SSV testnet and cluster performance will be shared in the coming weeks, and an extensive blog post will be published at the conclusion of the testnet.

Simple DVT Process Updates

Simple DVT Module Committee

As described in the Simple DVT Module proposal, the “Simple DVT Module Committee” is a multi-sig committee responsible for creating and executing Easy Track motions specifically for Simple DVT that can create new clusters, activate and deactivate existing clusters, raise and lower cluster key limits, and change cluster manager and reward addresses.

The Simple DVT Module Committee will be made up of contributors from the Lido DAO, Lido Node Operator Sub-governance Group, Obol, and SSV Network DAO. The multi-sig is expected to consist of: two Lido DAO contributors, three LNOSG contributors, one Obol contributor, one SSV contributor. In the coming weeks, the participants for this multisig will be shared according to the processes outlined in the Lido DAO Ops Multisig Policy.

The Easy Track optimistic governance process allows for streamlined execution of processes related to the operations of what will potentially be 40-80 mainnet Simple DVT clusters in 2024. On mainnet, a 72 hour objection period exists for LDO voters to veto any active motions related to these cluster operations by using the Simple DVT EasyTrack smart contract, with an optional UI also available.

Simple DVT Reward Distribution

Each cluster participant submits their “Individual Manager Address” (1) and “Individual Reward Address” (2) during the cluster setup phase, from which (1) cluster specific multi-sigs representing their Cluster Node Operator entries are generated and (2) reward splitter contracts are deployed.

To simplify the reward claiming process for Simple DVT Node Operators, both the Obol and SSV Network clusters will utilize two sets of smart contracts: 1. a wrapper developed by Obol that wraps stETH rewards into wstETH, charges an (optional) fee, and sends the remainder of the wstETH to the next smart contract, 2. An 0xsplits set of smart contracts that allows for the distribution of rewards between participants. The Obol wrapper contract was audited by a solo auditor (obol-splits/audit at main · ObolNetwork/obol-splits · GitHub), and the Obol team plans to undergo an additional audit of the contract in the coming months.

A wrapper contract is created via the ObolLidoSplit factory and this contract is specified as each cluster’s reward address. This contract is responsible for wrapping stETH rewards to wstETH and when applicable, gives the DVT provider their reward share. This contract can be called by anyone, and will transfer wstETH to a split contract created via another factory (the main 0xsplit contract), from where each individual cluster participant can claim.

During the third round of testnets to date, the Obol team has deployed the splitter contracts for the Obol testnet, and Lido DAO contributors have deployed the contracts for the SSV testnet.

Additional updates regarding the status of the testnets, cluster performance, the Simple DVT Module Committee, and reward distribution will follow in the coming weeks.

Finally, the fourth round of Lido DVT Testnets for interested participants of the mainnet Simple DVT module is expected to commence in late February/March. If you are interested in participating, please fill out this form: