Lido, a prominent liquid staking protocol, launched its Community Staking Module (CSM) on the Ethereum (ETH) mainnet on October 25. The CSM enables users staking ETH to operate as solo validators, increasing accessibility to Ethereum staking.
Lowering Staking Barriers
The newly launched CSM aims to ease the technical and financial challenges of Ethereum staking. It enables users to become Ethereum validators without requiring the standard 32 ETH deposit. This makes it more accessible for individuals with limited technical knowledge or smaller amounts of Ether.
Early Adoption Phase for Community Stakers
At present, the CSM is in an “Early Adoption” phase, where only selected community stakers can participate. However, Lido plans to transition to a fully permissionless phase in the near future, allowing broader access.
Governance and Support for Mainnet Release
The approval for CSM’s mainnet release involved voting by Lido DAO members, with 109 members allocating 71 million LDO tokens in favor, while 86 members opposed the move.
Lido’s Dominance in DeFi
According to DeFiLlama, Lido remains the largest decentralized application by total value locked (TVL), managing over $24 billion in its smart contracts.
CSM Testing on Ethereum’s Testnet
Before its mainnet launch, CSM underwent a three-month trial period on Ethereum’s Holesky testnet, starting on July 1. During this test phase, the module attracted over 370 unique node operators, including 70 solo stakers within the first 10 days.
Enhancing Accessibility to Ethereum Staking
The high capital and technical expertise typically required to run a validator have long been a challenge for Ethereum staking. Conventional solo staking requires 32 ETH as a bond, which currently amounts to approximately $79,000. However, CSM significantly lowers this entry barrier, requiring just 2.4 ETH to start and 1.3 ETH for additional validators. Lido’s interface also simplifies the process by eliminating the need to set up individual operations.
By welcoming a diverse group of participants, CSM enhances Ethereum’s decentralization efforts.
CSM’s Impact on Ethereum Security and Decentralization
Dmitry Gusakov, the Technical Lead for CSM and a Lido Protocol Contributor, highlighted the module’s significance, stating:
“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.”
Staking Router: A Modular Upgrade
The CSM operates based on the Staking Router, which serves as a modular upgrade. This upgrade enables anyone to develop on-ramps for new node operators, further expanding Ethereum’s validator network.
By introducing CSM, Lido aims to bolster Ethereum’s decentralization while making staking more accessible to a broader audience.
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