As Ethereum ‘merged’ to its current proof-of-stake consensus model, the steep (for retail) minimum stake of 32 ETH created a serious risk of centralisation through staking delegation to centralised entities. Lido DAO was envisioned to preserve staking decentralisation, while also providing additional value for staked ETH in the form of liquid staking tokens (LST). However, as its market share reached the first threshold of 33%, concerns have started to be voiced regarding Lido’s own risk of centralisation. Through its dual governance model where stakers can veto $LDO voters, and the upcoming implementation of distributed validator technology (DVT) and community staking module (CSM), the Lido DAO aims to preserve staking decentralisation.
We were joined by Isidoros Passadis, contributor and Master of Validators at Lido DAO, to discuss Ethereum’s current liquid staking landscape, Lido’s governance model and what steps it takes to ensure staking decentralisation.
Topics covered in this episode:
- Isidoros’ background and how he started working at Lido DAO
- Lido’s core architecture and how it ensures decentralisation
- Transitioning from a curated node operator set to a permisionless model
- Distributed Validator Technology (DVT)
- Lido’s dual governance model
- stETH bridging and use cases in DeFi
- How Lido adapts to Ethereum forks & EIPs
- Maximum validator effective balance and minimal staking issuance
- Ethereum vs. Lido governance
- Lido’s approach to MEV
- Restaking & Eigenlayer
- Expanding Lido to other chains
- Lido’s market share and other liquid staking competitors
Episode links:
Sponsors:
- Gnosis: Gnosis builds decentralized infrastructure for the Ethereum ecosystem, since 2015. This year marks the launch of Gnosis Pay— the world's first Decentralized Payment Network. Get started today at - gnosis.io
- Chorus One: Chorus One is one of the largest node operators worldwide, supporting more than 100,000 delegators, across 45 networks. The recently launched OPUS allows staking up to 8,000 ETH in a single transaction. Enjoy the highest yields and institutional grade security at - chorus.one
This episode is hosted by Brian Fabian Crain & Felix Lutsch. Show notes and listening options: epicenter.tv/528
