FAQ

​

What is Staking

Cryptocurrency staking is the process of holding coins/tokens (stake) to earn rights to participate in the validation of transaction blocks, and in doing so, Validators are rewarded.

​

What is DVT Staking API

DVT Staking API is an innovative product designed specifically for institutions and intermediaries, enabling them to leverage the advantages of Distributed Validator Technology (DVT). Our API simplifies the process of integrating with the SSV protocol, automating the staking process for enhanced efficiency and ease.

​

What is DVT

Distributed Validator Technology (DVT), in the majority of PoS (proof-of-stake) systems, assigns each validator a single staking node. However, Distributed Validator Technology allows for the splitting of responsibilities and risks associated with a single validator node across multiple participants. The primary goals of DVT are to increase the security, decentralization, and resilience of the network by ensuring that no single point of failure exists.

​

What are the advantages of using DVT

Enhanced Security and Fault Tolerance: DVT’s distributed nature means that your staking operations are not dependent on a single node operator. This significantly reduces the risk of system failures, security breaches, and the impact of potential attacks, as responsibilities and tasks are shared across multiple providers. Diversification and Reduced Risk: By spreading your staking across various operators and geographical locations, DVT minimizes the risks associated with relying on a single validator or location. This diversification ensures more stable and reliable staking outcomes. Cost Efficiency: DVT allows for more efficient management of staking operations. By distributing tasks across various nodes, operational costs can be optimized, translating into better cost-efficiency for the clients. High Performance and Reliability: With nodes distributed globally and managed by top-performing operators, DVT systems typically exhibit higher uptime and performance consistency, contributing to potentially greater staking rewards.

​

What are the risks of using DVT

Technology Risks: As with any technology reliant on software and online connectivity, there is always the risk of software bugs, vulnerabilities, or unforeseen technical issues that could affect the system’s stability. Market Risks: A key consideration is the volatility of the SSV token price. Since users top-up the cluster balance with SSV tokens, a price decrease can lead to operators increasing their fee in SSV tokens to maintain their margins. This necessitates users to pay more and constantly monitor their balance to avoid liquidation risks.

​

What is SSV

Secret Shared Validator (SSV) is a technology that allows for the secure and decentralized operation of validator nodes in proof-of-stake (PoS) blockchain networks.

​

What is EigenLayer

EigenLayer is a protocol built on top of Ethereum designed to enhance the economic utility of staked ETH by allowing users to leverage their existing Ethereum stakes to secure additional protocols and applications without requiring additional collateral.

​

What is AVS

Actively Validated Services (AVS) refer to any system that necessitates its own distributed validation semantics for verification. This includes sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments. AVS is integrated into EigenLayer, essentially serving as node operators.