What is DVT and how does it improve security in Ethereum

Staking on Ethereum requires keeping your validators always active, with secure key management and high availability. A single hardware failure, a configuration error, or an attack can lead to losses due to inactivity or even slashing.

To mitigate these risks, Distributed Validator Technology (DVT) emerges — it distributes the functions of a validator across multiple nodes that cooperate in a fault-tolerant cluster, eliminating single points of failure while increasing decentralization and resilience.

In this article, we explain how DVT technology works, its current applications, and how we implement it at Stakely to strengthen the security of our infrastructure.

In a traditional validator, a single server stores the private validation key and signs all duties. If that server fails, the validator goes offline.

With DVT, the key is never stored in full on any node: it is split into cryptographic shares through Distributed Key Generation (DKG), and signatures are produced using threshold BLS (m-of-n). In other words, only when a minimum subset of nodes (e.g., 3 of 4) sign together is a valid signature generated for the Beacon Chain. This way, the “master” key can remain encrypted and offline, since only its shares exist in production.

To coordinate, cluster nodes use Byzantine fault-tolerant mechanisms that allow progress even if some nodes disconnect or behave maliciously.

In plain words: you no longer depend on a single server, but on a coordinated set of nodes with higher availability, redundancy, and security. This set is known as a cluster.

Diagram of Distributed Validator Technology. Source: Ethereum.org

The main advantage of DVT is breaking the dependency on a single server or provider. But it brings many more benefits:

• Increased security: keys are never concentrated on a single node.
• Lower slashing risk: by reducing operational errors (outages, duplicates) and using threshold coordination, it significantly decreases the likelihood of penalties (though not completely eliminating them).
• More decentralization: enables multi-operator validators and diversity of clients, hardware, and geographic locations.
• Fault tolerance and higher availability: the cluster continues signing as long as the threshold is met.
• Lower entry barriers: allows professional or community operators to join forces in clusters (e.g., 3-of-4 or 4-of-7), lowering barriers to entry.

A traditional validator concentrates operation and key in a single node: a hardware or network failure, or misconfiguration stops participation and can cause losses or slashing (for example, due to double signing or validator duplication).

With DVT, these limitations are mitigated: if one cluster node goes down, the rest keep the validator active as long as the signing threshold is met. This makes DVT a key technology for reliable and sustainable infrastructure, especially in high-volume environments.

Currently, SSV and Obol lead DVT implementation in Ethereum. Both distribute validator responsibility, but solve it differently. While SSV uses its own consensus layer, Obol does so with middleware that integrates with existing clients.

• SSV Network: splits these components among different operators and adds its own consensus layer (IBFT) to ensure everyone is synchronized before signing. The key never exists fully in one place, eliminating the single point of failure.

• Obol Network: introduces software called Charon, which acts as a “connector” between cluster nodes. Each operator has a share of the key generated via Distributed Key Generation, and Charon coordinates signatures so the validator behaves as one. This way, it integrates directly with existing Ethereum clients without requiring an extra consensus layer.

In practice, both support DKG and threshold BLS, but SSV adds its own IBFT consensus layer, while Obol acts as middleware coordinating the cluster with local BFT.

Adoption of DVT depends not only on the base technology (SSV or Obol) but also on how it is integrated. Let’s look at its real use in Lido, the largest liquid staking protocol on Ethereum, through modules tailored to different validator profiles:

• Simple DVT Module: live on mainnet since April 2024 with Obol and SSV clusters. With professional operators and community stakers managing distributed validators together, it has proven DVT works under real conditions.
• Community Staking Module (CSM): designed to onboard smaller operators and solo stakers with a lower entry deposit. In this module, DVT is optional, and operators must self-coordinate to use it and join a cluster.
• Curated Module: Lido’s “classic” module, managed by selected professional operators. Since 2025, guidelines have been approved to enable intra-operator DVT (Obol or SSV) on an opt-in basis within the Curated Set, meaning each operator creates its own cluster with Obol or SSV, with key limits and prior testnet validation before progressive adoption. In fact, at Stakely we’ve partnered with Obol to apply DVT to our validators as a Curated Module operator.

Beyond Lido, several protocols have integrated DVT into their staking architectures:

• Swell: in its curated set, integrates DVT via SSV, allowing its operators to benefit from DVT resilience and security in its liquid staking model.
• Stader: announced SSV integration in June 2024. Currently, its permissioned operator set runs only with SSV, while in the permissionless operator set, operators can choose Obol or SSV.
• StakeWise: offers support for operators wanting to set up distributed validators with DVT, with specific guides for implementation using Obol and SSV.

At Stakely, we work with DVT in both production and testing environments, combining Obol and SSV. Our contribution stands out for:

• Distributed validators in testnet and mainnet: before any production rollout, we run exhaustive testnet trials to validate stability, latency, and fault resistance.
• Direct feedback to teams: we share performance metrics and data from our validators, helping identify bottlenecks and propose improvements in cluster coordination.
• Active collaboration in technical iterations: we apply changes and optimizations requested by protocols, leveraging our operational expertise to verify effectiveness in real environments.
• Participation in multi-operator clusters: we not only integrate DVT into our own validators but also cooperate with other operators to strengthen ecosystem decentralization and diversity.

Conclusion

Distributed Validator Technology is no longer a future promise, but a production-ready reality that has proven its value. More and more protocols are integrating it, and it’s clear it is here to stay as a cornerstone of Ethereum staking.

At Stakely, we adopted it from its early stages and continue contributing with testing, data, and direct feedback to development teams. Our commitment is clear: to leverage DVT to make Ethereum a more secure, resilient, and decentralized network.