Lido DAO has approved the deployment of the Simple Distributed Validator Technology (DVT) module, which is a step towards quickly diversifying Lido node operators and promoting innovation within the Ethereum staking ecosystem. DVT is a system that operates similarly to a validator running a multi-signature setup, relying on multiple NOs rather than a single node operator. Each NO manages different nodes, which communicate and work together to fulfill the responsibilities of the validator.

In addition, the role of DVT is to: increase the resilience of validators; reduce failure points and downtime risks; improve decentralization between infrastructure, geography, and clients; and add an additional layer of protection through distributed key generation (DKG).