Ether.fi integrates SSV Network to enhance protocol asset security

SSV Network announced a collaboration with the liquidity staking project ether.fi to integrate decentralized validator technology DVT and restaking technology for enhanced user asset security and validator diversity, improving protocol decentralization capabilities.

Background: Introduction to SSV Network

SSV Network is a representative case of Distributed Validator Technology (DVT), a decentralized validator technology. Unlike Lido or Coinbase, which do not have control over validator accounts' private keys, SSV Network utilizes Secret Shared Validator (SSV) technology, allowing users to stake ETH on the network without the need for the 32 ETH threshold.

The goal of SSV Network is to address the increasing centralization issue in the Ethereum proof-of-stake (POS) staking economy.

SSV Network Provides Flexible Staking Mechanism

DVT Mechanism Strengthens Security of Ether.fi

Ether.fi has integrated SSV Network into its protocol to enhance the security of Ether.fi's liquidity staking protocol using DVT technology to prevent asset losses due to user errors, geographic risks, and other potential issues that could compromise validators.

Strategic operator selection and geographical diversity. This integration allows Ether.fi to leverage node operators on the SSV Network strategically distributed globally, including Finoa, PierTwo, Allnodes, DSRV, a41, P2Porg, NodeMonster, and Chainnodes, to further reduce the risk of single-point failures and increase diversity.

SSV Network allows stakers to control their keys, with validator keys split into key shares, making it more difficult for malicious actors to compromise validators. This also enables stakers to retain custody of the keys and securely store them offline.

Ether.fi Collaborates with Seven Node Operators

Out of the seven nodes, two nodes can be offline at the same time. By selecting based on different client needs, infrastructure settings, and geographical locations, Ether.fi can enhance the protocol's long-term viability and resilience to external pressures.

In the past few weeks, Etherfi has introduced over 1,960 validators on the SSV network, representing approximately $200 million in assets.