- October 25, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Liquid staking protocol Lido launched its Community Staking Module (CSM) on the Ethereum (ETH) mainnet on Oct. 25. The CSM allows any user staking ETH to become a solo validator.
CSM aims to reduce barriers to Ethereum staking by allowing individuals to operate Ethereum validators with less technical know-how and an Ether deposit requirement smaller than 32 ETH.
However, CSM is currently in the “Early Adoption” phase, allowing only curated community stakers to participate, with the fully permissionless phase set to go live soon.
The parameters approval for the mainnet release had 109 Lido DAO governance members allocating 71 million LDO tokens in favor, while 86 members voted against it.
Lido is currently the largest decentralized application by total value locked, with over $24 billion in its smart contracts, according to DefiLlama.
Notably, CSM underwent a test period on Ethereum’s testnet Holesky initiated on July 1. The three-month trial welcomed over 370 unique node operators, including 70 solo stakers, within the first 10 days.
Enhancing accessibility
The Ethereum staking landscape faces an old challenge consisting of the high capital and technical expertise typically required to run a validator.
Unlike conventional solo staking, which requires a 32 ETH bond — equating to $79,000 at current prices — the CSM reduces the threshold to 2.4 ETH to get started and 1.3 ETH for subsequent validators.
Additionally, potential validators can use Lido’s interface and don’t need to set up their own operation.
Thus, by allowing a wide array of participants to the network, the CSM contributes to Ethereum’s decentralization.
Dmitry Gusakov, CSM Technical Lead and Lido Protocol Contributor, said:
“The Community Staking Module allows more people to contribute to Ethereum’s security and decentralization, creating a healthier, more resilient network. We’re committed to breaking down barriers, so anyone, regardless of financial or technical background, can contribute to Ethereum’s security.”
The CSM is based on the Staking Router, a modular architectural upgrade that allows anyone to develop on-ramps for new node operators.
The post Lido DAO launches its Community Staking Module to boost Ethereum decentralization appeared first on CryptoSlate.
