Lido Unveils Community Staking Module on Ethereum Mainnet
Liquid staking protocol Lido has introduced its Community Staking Module (CSM), which launched on the Ethereum (ETH) mainnet on October 25. This innovative feature allows users who stake ETH to operate as a solo validator.
Purpose of the Community Staking Module
The Community Staking Module (CSM) is designed to facilitate easier accessibility to Ethereum staking. It enables users to become Ethereum validators without requiring extensive technical knowledge or the traditional 32 ETH minimum deposit.
Current Phase and Future Plans
Currently, the CSM is in its “Early Adoption” phase, allowing a select group of community stakers to participate. A fully permissionless phase is anticipated to launch soon.
For the mainnet launch approval, 109 Lido DAO governance members voted, with 71 million LDO tokens supporting the initiative versus 86 against it.
Lido’s Current Standing in the Market
Lido remains the leading decentralized application in terms of total value locked, boasting over $24 billion across its smart contracts, as per DefiLlama.
Testing Phase on Holesky Testnet
The CSM underwent a trial on Ethereum’s Holesky testnet starting July 1, attracting over 370 unique node operators, including 70 solo stakers, within the first ten days.
Lowering Barriers for Participation
The Ethereum staking environment has historically been challenging due to the significant capital investment and technical skills needed to run a validator.
- Typically, solo staking necessitates a bond of 32 ETH, worth approximately $79,000 at current rates.
- However, CSM reduces the initial requirement to just 2.4 ETH, with 1.3 ETH needed for subsequent validators.
- Validators can utilize Lido’s user-friendly interface, eliminating the need for setting up an independent operation.
This more inclusive approach not only enhances accessibility but also significantly boosts Ethereum’s decentralization.
Insights from Lido’s Technical Lead
Dmitry Gusakov, the Technical Lead for CSM and a contributor to the Lido Protocol, stated:
“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 operates on the Staking Router, a modular upgrade that paves the way for developers to create on-ramps for new node operators.
