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New Module Eases Staking Entry with Low Collateral
Lido, Ethereum's largest liquid staking protocol, has launched a new initiative aimed at democratizing Ethereum staking through the recently approved Community Staking Module (CMS).
This new module, which garnered approval from Lido DAO on October 24, enables users to set up Ethereum validators with a significantly reduced collateral requirement. While traditional staking demands a hefty 32 ETH to operate a validator, Lido’s CMS slashes this barrier, allowing validators to be established with just 2.4 ETH in collateral and even 1.3 ETH for those adding additional validators.
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Early adopters, including Ethereum and Gnosis solo stakers, CSM testnet participants, and Obol Techne credential holders, can get started with an initial bond of just 1.5 ETH, coupled with enhanced rewards for their participation.
The CMS initially launched on Ethereum's Holesky testnet in July, attracting over 370 node operators, including 70 solo stakers, within its first ten days. Dmitry Gusakov, Lido Protocol contributor and CSM technical lead, emphasized the module's potential to foster Ethereum’s security and decentralization, asserting it opens the door for anyone, regardless of financial constraints or technical knowledge, to contribute to the network’s robustness.
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This push comes amidst increasing support for lowering staking thresholds to encourage solo participation, notably echoed by Ethereum’s co-founder and chief scientist, Vitalik Buterin.
Earlier this month, Buterin urged Ethereum developers to further reduce collateral requirements for solo staking, suggesting that a mere 1 ETH bond would substantially ease entry for independent validators. Citing community polls, he noted that high collateral remains the primary obstacle for many aspiring solo stakers, with his advocacy aiming to make individual staking accessible on a larger scale.
Despite this push, Buterin also raised concerns regarding the increasing influence of large staking platforms, such as Lido, which now controls approximately 27.9% of Staked Ether, commanding a total value locked exceeding $24.8 billion.
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This development positions Lido’s CMS as a direct competitor to Rocket Pool, another liquid staking protocol that has allowed users to launch validators with a comparatively lower collateral requirement of 8 ETH.
As Lido moves to establish its module as a fully permissionless staking option “in the near future,” it underscores an industry-wide shift toward reducing entry barriers in Ethereum staking and further diversifying validator participation.
This article has been refined and enhanced by ChatGPT.
