Simple DVT: Obol Testnet #4 Results

Stuart James -

The most recent Lido x Obol Simple DVT testnet has officially ended, with the aggregate validator set surpassing all of the minimum requirements to move forward to mainnet!

 

This was the 4th testnet where Node Operators operated validators utilizing the Lido protocol with Obol’s DVT solution, following the first testnet in 2022, the second testnet in 2023 and the third testnet at the beginning of this year.

 

As described in the Simple DVT Module Proposal, participation in a Simple DVT testnet is a requirement for Node Operators seeking to participate in running validators using the Lido protocol via the Simple DVT Module on mainnet.

 

About Simple DVT

The Simple DVT Module (SDVTM) is the second mainnet Lido protocol module, added following an on-chain Aragon vote in February 2024. The module provides the first opportunity for solo and community stakers to participate in running validators using the Lido protocol by leveraging the established design of the Curated Operator Module and DVT solutions provided by Obol and SSV Network. Node Operators work together to run validators in what’s known as clusters.

 

Today, the SDVTM for Lido on Ethereum consists of a total of 57 clusters, with 26 normal Obol Clusters and 21 normal SSV clusters. Additionally, there are 5 Simple DVT Super Clusters utilizing Obol and SSV Network’s technology with the ability to run more validators. For more information on Super Clusters, read the forum post here.

 

Overall, the SDVTM clusters are running over 1,350 validators and are expected to reach ~ 12,000 or 4% of the Lido on Ethereum share. Furthermore, to date, Simple DVT has facilitated the onboarding of 198 net-new Node Operators to Lido on Ethereum, including 125 solo and community stakers. It is expected after the next two onboarding rounds over 300 net-new Node Operators will be utilizing the Lido on Ethereum protocol to run validators. 

 

Another recent initiative related to the Simple DVT Module is the Decentralized Validator Vault, implemented by Mellow with provider incentives from SSV Network, Obol, and Mellow. Its goal is to boost the number of Distributed Validators (DVs) active in the Simple DVT Module, advance the decentralization and resilience of the Lido on Ethereum node operator set, improve network security, and allow stakers to receive DVT provider incentives in the form of points. For more details, please read the blog post here.

 

To learn more about the SDVTM, read the recent blog post here.

 

Lido & Obol Testnet: Overview

Participant Distribution

The 4th Lido x Obol Testnet started in late April 2024 on the Holesky testnet, with 157 total participants including over 80 solo stakers & community stakers, as well as 70+ professional node operators. Participants were split into 24 clusters of 7, with an effort to minimize geographic related latency and achieve a diversity of infrastructure types (e.g. bare metal servers, home machines, and public cloud).

 

Similarly to the previous testnet, each cluster included at least an experienced participant (either members of the Lido Curated Operator Set or participants from the prior Lido x Obol Testnets). In addition, an effort was made to include participants that had indicated significant experience with Obol based DVT during their applications. At the aggregate level, participants from 28 countries across North & South America, Europe, Asia, and Australia came together to run nodes.

 

 

The process

Each cluster started the process by choosing a “Cluster Coordinator”, a participant that would be responsible for creating a Safe multi-sig and initializing the Distributed Key Generation (DKG) ceremony for each cluster. Each cluster’s SAFE also consisted of a 5/7 threshold, and represented their cluster in the Lido Node Operator registry on Holesky.

 

Next, cluster participants each submitted and verified an “Individual Manager Address”, used for signing messages in the Safe and Obol cluster, and an optional “Individual Reward Address” that participants could choose to receive validator rewards in lieu of their Individual Manager Address.

 

Once completed, Cluster Coordinators created their respective cluster Safes and participants configured their nodes, generated 1000 validator keys via DKG, and submitted the keys to the Simple DVT Module on Holesky. The participants started off by using MEV Boost with Aestus, Flashbots, Titan, and Ultrasound as relays. During this onboarding process, some participants were replaced due to technical difficulties or lack of activity, leading to the final number of 157 participants that would complete the trial.

 

Before validators were activated, numerous participants reported error messages in their Validator Client and Charon logs. After analysis by the Obol team, it was determined that due to the large number of Holesky validators as well as issues with certain VCs not being able to parse inactive keys within the set timeout period, an adjustment was required. Once resolved, validators were deposited to and the performance monitoring period started. Early in the monitoring period, similarly to the previous testnet, there were some problems with the Block Proposal Success Rate. While some clusters were able to submit block proposals successfully, a significant number of clusters missed the vast majority of slots, and in some cases missed all of them. 

 

This led to the Obol team analyzing and identifying some issues:

  1. A client bug affecting validator clients;
  2. The large number of inactive keys on nodes causing timeouts;
  3. Performance degradation due to ongoing mass slashing events on Holesky at that time.

 

After the rollout of new Charon versions, the implementation of configuration changes and confirming that everyone was pushing metrics to Obol monitoring correctly, an improvement in block proposal success rate was observed. During this period, cluster key limits were raised to 500–1,000 for several clusters to stress test the nodes with a higher number of validators, as well as to accelerate performance improvements.

 

Over the following weeks, performance improvements continued and the Block Proposal Success Rate improved to 81.24%, surpassing the trial’s minimum requirement of 70%.

 

To conclude the testing, all validators were exited on August 11th, and participants successfully completed claiming of rewards via the Simple DVT Reward Distribution process.

 

Performance Results

 

Obol Cluster Aggregate Results

As seen in the image above, the aggregate metrics for this Lido x Obol testnet surpassed all of the Minimum Testnet Success Characteristics outlined in the Simple DVT Module Proposal, with 97.87% Uptime, 85.71% Attestation Effectiveness, and a 81.24% Block Proposal Success Rate (all metrics per Rated). In addition, outside of Block Proposals, Obol cluster performance also surpassed the tracked aggregate average for the entire Holesky network.

 

Cluster Results 

At the cluster level, 22/24 clusters surpassed the Uptime Benchmark, 22/24 surpassed the Attestation Effectiveness benchmark, and 19/24 surpassed the Block Proposal Success rate benchmark.

 

All in, 75% of clusters, or 19/24, surpassed all of the observed required benchmarks.

 

 

 

 

Participant Performance

While specific participant performance will not be discussed in this blog post, there is an important point to note: participants in clusters that did not reach the minimum performance benchmarks are not automatically excluded from moving forward to mainnet.

 

In many cases, these clusters contained a majority of Node Operators who were highly cooperative within their clusters, responsive to updates and testing requirements, and whose nodes were performant.

 

The LNOSG will meet in the coming weeks to examine the quantitative performance results of the trial at the aggregate, cluster, and participant level and will also have the opportunity to examine the qualitative metrics obtained via survey and notes from the trial from the Lido DAO and SSV contributors.

 

Following that, a forum post will be made on the Lido Research Forum to propose a list of  the clusters and participants to move forward to mainnet. Each participant will receive an email with individual feedback noting the proposed assessment and inviting them to participate in the cluster formation discussion and also optionally in future testnets if they so choose.

 

Path to Mainnet

Following the posting of the LNOSG suggested shortlist of participants to the forums, the DAO will have one week to discuss the proposal and state any objections. If no objections arise, clusters will begin the coordination process and the Simple DVT Module Committee will commence Easy Track motions (which can be rejected by LDO token holders) to register the clusters on the Lido Simple DVT Module registry.

 

In parallel, the SSV Network Testnet #4 is currently underway and expected to be complete by late November or early December. Upon completion, a similar blog post will be shared with the community and an additional LNOSG process will follow for those participants.

 

What's next?

Once the ongoing SSV Testnet #4 concludes, attention will shift towards the Community Staking Module (CSM)’s upcoming mainnet launch, which also allows for usage of DVT. 

 

The Community Staking Module is the first permissionless module, enabling anyone to use the Lido protocol to run validators. Specifically aimed at solo and community stakers, whether running a vanilla node or coordinating as a group with Distributed Validator Technology, CSM enables more people to become operators. This not only enhances decentralization, but also significantly democratizes access to Ethereum staking, making it more inclusive and resilient.

 

Interested in participating? You can join the CSM testnet today or read about the results so far, and follow along with the governance votes for its release and deployment on mainnet.

 

Appendix: Obol Testnet #4 Participants

Cohort 1: NakoTurk, GDiC, Long, CryptoBoru, polikosi, CryptoCrew Validators, Nethermind

Cohort 2: enti, Phuc Vu, hereWeGo, Tessier-Hashpool, Hayhouse Projects, marisarze, POSTHUMAN

Cohort 3: 🔥STAVR🔥, Astro-Stakers, Yspud, CrisOG, Orion, dimkatoy, CVJoint

Cohort 4: Thoma Technologies LLC, enti, Chuy Garcia, Svetlana, lightningstrike, rodion007, StakeCat

Cohort 5: rch, Stake Village, Albinos, Altair, CertHum, RockLogic GmbH, pWse

Cohort 6: Luck, NOXU, Girnaar Nodes, Sam (Stakesaurus), Cosmostation, Blockblaz, TWM

Cohort 7: ITRocket, Tané, hellman, IT Times.com, LinkRiver, nethon, kycoinapple

Cohort 8: XHash, DxPool, Jon | AussieStake, Sam (Stakesaurus), Benedict Chan, Kingnodes, Dora Factory

Cohort 9: Zim, breskulpeak.com, GBeast, Kukis Global, CryptoCrew Validators, Genry, Axol.io

Cohort 10: Viacheslav Smirnov, Cusp, Alirus, Staking4All, Blockblaz, Donna, kamran

Cohort 11: ShardLabs, Marlon, AutoStake, gumat, masha.m, gn2020, Attestant BVI

Cohort 12: enti, Leo Shapeero, StakeCat, Igor, swiftstaking, Jerod, DSRV

Cohort 13: Kiln, AinsleyKeith, 0xFury, ChainUp, Spirit, Tayfun AYDIN, StakeLab.zone

Cohort 14: Eridian, ipetkov.eth, Kiarra, Volodya, kxinon, cryptozab, bountyblok

Cohort 15: farukyasar, VladCrypto, swiftstaking, Nodexplus, crazydimka, GLCstaked, nodeADDICT

Cohort 16: OnThePluto, ShardLabs, Ashalance, Cosmostation, Candyto, aqquma, TRUPROCRYPTO

Cohort 17: Gavryushev, Stardust Staking, shimbob, AmoretAaron, Syncnode, Zhantai, 2xStake

Cohort 18: m0h5en, [NODERS], eth10000, d0ri0n, Strong, Openbitlab, getsafari

Cohort 19: Blockshard, Silent Validator, DreamGallery, larmork, STAKKY, Vault Staking, Dan

Cohort 20: 2xStake, Professor Parpinsons, makaridza, BlockPI Network, Sergi | rwrnodes, Openbitlab, Florest

Cohort 21: Matrixed.Link, Tannie, Monika, Mrs_ml, CrazzyWizzard, SnakePliskin, Pavlo

Cohort 22: bountyblok, Binh Duong, Bablovcoin, Blockshard, Verre, CodeGp, Let's Node

Cohort 23: antotg, smc, Syncnode, Dmitry S, Alex, jeni, Luganodes

Cohort 24: SbGid, Enigma, schisme, jeronima, antotg, 5quat, Stakelab.zone