Lido, a liquid staking protocol, has launched its Community Staking Module (CSM) on the Ethereum (ETH) mainnet. This new module aims to allow anyone staking ETH to become a solo validator, reducing barriers to Ethereum staking. It does this by enabling individuals to operate Ethereum validators with less technical know-how and a smaller Ether deposit requirement than 32 ETH.
Although currently in the “Early Adoption” phase, only allowing curated community stakers to participate, the fully permissionless phase will be going live soon. The CSM’s parameters approval for the mainnet release saw 109 out of 195 Lido DAO governance members allocating 71 million LDO tokens in favor, while 86 members voted against it.
Lido is currently the largest decentralized application (DeFi) by total value locked (TVL), with over $24 billion in its smart contracts, according to DefiLlama. Prior to the mainnet release, the CSM underwent a three-month test period on Ethereum’s testnet Holesky, beginning on July 1. During this time, over 370 unique node operators, including 70 solo stakers, participated within the first ten days.
One of the main challenges facing the Ethereum staking landscape is the high capital and technical expertise required to run a validator. Unlike conventional solo staking, which requires a 32 ETH bond (equating to $79,000 at current prices), the CSM reduces the threshold to 2.4 ETH to get started and 1.3 ETH for subsequent validators.
Additionally, potential validators can use Lido’s interface and don’t need to set up their own operation. By allowing a wide array of participants to the network, the CSM contributes to Ethereum’s decentralization. Dmitry Gusakov, CSM Technical Lead and Lido Protocol Contributor, 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 is based on the Staking Router, a modular architectural upgrade that allows anyone to develop on-ramps for new node operators.
