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The Lido DAO's Community Staking Module (CSM) aims to decentralize Ethereum staking by attracting independent node operators, offering competitive rewards and a user-friendly experience, with a mainnet launch targeted for 2024. While the initiative has garnered support for its potential to enhance network security and fairness, it also faces concerns over its fee structure, the impact on staking diversity, and systemic risks to Ethereum.
The community is actively discussing the Lido DAO's Community Staking Module (CSM), which is designed to increase participation by attracting a diverse group of independent node operators. The CSM is expected to provide smoother EL rewards and MEV, competitive bonds, a user-friendly experience with low gas fees, and higher profitability compared to solo staking1. The Lido DAO team is aiming for a mainnet launch of the CSM by the end of 20241. Community members such as Zahary, Eliasimos, Lanski, and Allen_Ebunker are looking forward to creating interfaces and integrating the CSM into existing products11,13,14,19. Tools like Sedge from Nethermind, offered by Jorgeth, could simplify the onboarding process for new permissionless operators to the Lido protocol24. Washosk from Ethereum on ARM has emphasized the CSM's potential to balance the Ethereum validator landscape and the importance of including Solo stakers for fairness25. Thorsten_Behrens has discussed Eth Docker's role in simplifying solo staking and its potential integration with CSM, which Lido Finance has already explored through a Proof-of-Concept. He is considering how to ensure compatibility with Eth Docker and the process for accepting a PR into the upstream27.
The proposal has received widespread support and active engagement from the community2,3,4,5,10,14,15. However, it has also sparked debate over the 10% limit, the 1% stake allocation, and its interaction with Simple DVT2,3,8. Some members are concerned that the proposal might favor bond over DVT setups, which could reduce staking diversity14. Micho and Hanniabu have raised concerns about systemic risks to Ethereum and have called for revisions, particularly regarding the fee structure17,20. Skozin has defended the proposal, highlighting that solo operators are motivated by more than profit, such as contributing to network security22. Randomishwalk has justified the proposed 7.5% fee to Node Operators, explaining the economies of scale in running validators and aggregating stake23. A follow-up post by Dgusakov and Mol_Eliza provides a framework for comparing capital efficiency across different bonding designs and fee structures, inspired by discussions with Micho during LidoConnect26.
There are no specific next actions mentioned in the provided summaries. However, the community may continue to discuss the integration of Eth Docker with CSM and the potential acceptance of a PR into the upstream as mentioned by Thorsten_Behrens27.
Posted 25 days ago
Last reply 9 days ago
Summary updated 9 days ago
Last updated 04/12 00:24