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Isidoros Passadis: Lido DAO – Staking Decentralisation for Ethereum and LSTs in DeFi

Dec 30, 2023

Isidoros Passadis, co-founder of Lido DAO, discusses Ethereum's liquid staking landscape, Lido's governance model, stETH bridging, and Lido's approach to MEV. They also explore the benefits of distributed validator technology, dual governance, upcoming protocol changes, restaking, and the expansion of Lido to other chains.

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Introduction

00:00 • 3min

Lido DAO: Balancing Ideology and Market Forces

03:14 • 15min

Distributed Validator Technology and its Benefits

18:17 • 2min

Dual Governance and Staking Decentralization in DeFi

20:34 • 13min

Upcoming Protocol Changes and Staking Rewards

33:36 • 31min

Restaking and its Significance for Lido

01:04:18 • 25min

Gratitude, Industry Updates, and Call to Action

01:29:03 • 2min

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

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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