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Vitalik Buterin expresses worries about DAOs endorsing ETH staking pool operators

Vitalik Buterin expresses worries about DAOs endorsing ETH staking pool operators

Vitalik Buterin, the co-founder of Ethereum, has raised concerns about decentralized autonomous organizations (DAOs) having too much control over the selection of node operators in liquidity staking pools. He warns that this approach can expose the pools to potential risks from malicious actors. Buterin specifically mentions the liquid staking provider Lido as an example, but notes that relying on just one layer of defense may not be enough. He also highlights the risks associated with Rocket Pool’s approach, which allows anyone to become a node operator but can be vulnerable to 51% attacks. Buterin suggests that encouraging the use of multiple liquid staking providers could decrease the likelihood of any one provider becoming too large and posing a systemic risk.

Summary:

– Vitalik Buterin expresses concerns about DAOs controlling node operators in liquidity staking pools.

– He warns that this approach can expose the pools to risks from malicious actors.

– Buterin mentions Lido as an example and notes that one layer of defense may not be sufficient.

– He highlights the risks associated with Rocket Pool’s approach.

– Buterin suggests encouraging the use of multiple liquid staking providers to reduce systemic risk.

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