Agreed. I’m being involved with conversations on Lido side to help with this as I’ve been working on a model for ordering entering and exiting of validators for a couple hundred hours now. Hopefully can help to bring some ideas to what your team already has progressing.
I think there is a path to diversifying Lido operators even without solving the identity problem, and without requiring collateral to the extent of limiting capital efficiency meaningfully. I’ve been talking to Izzy about it.
Agreed, this is not an ideal solution long term. Though I do think it’s worth weighing up the time that would be required for an EIP to go live to do this properly, if that does end up being a solution that’s approved and added to the codebase. If it’s 1+ year, an interim solution like above, where Lido would centralize the keys here might be an acceptable option when the alternative is to wait 1+ year (potentially, just a guesstimate), or wait likely longer for the Nethermind solution to identity.
Personally, I find centralization of keys with Lido in the interim to be an acceptable tradeoff, but I know many would disagree. My main reasoning for this is that the current system requires a worse centralization, which is with the reliance on node operators to act faithfully. I think it would be helpful for more of these conversations to be had in public, so that Lido users can weigh-in on tradeoffs here.
Thanks for your response Vasiliy.