Cluster Node: Providing DKG and DVT Services for Lido CSM Users

# Cluster Node: Providing DKG and DVT Services for Lido CSM Users ## Proposal Overview Cluster Node is a component offering Lido CSM users an innovative Validator management service by utilizing SafeStake infrastructure like **Distributed Key Generation (DKG)** and **Distributed Validation Technology (DVT)**. Through deep integration with Lido CSM, we aim to address the following challenges: - **Enhanced Key Security**: Eliminates the need for manual management of keystore files, ensuring that Validator private keys never exist in their entirety on any single device, significantly reducing the risk of keystore leakage. - **Simplified Operational Processes**: Unlike the traditional deposit-cli method, there is no need to manage numerous keystore files. Validator generation is completed through automated interactions between Smart Contracts and operational nodes. - **Seamless Integration with Lido CSM**: Specifically designed for Lido CSM, enabling staking operations of unlimited scale. - **User-Friendly Interface**: Provides an intuitive front-end application, allowing Lido CSM users to monitor and manage the complete lifecycle of their Validators. ## Technical Implementation and Integration with Lido CSM ### Key Features 1. **DKG-Driven Key Generation** - Users initiate a Validator generation request through the Cluster Node, coordinating 4 Operator nodes to execute the DKG protocol, generating encrypted key shards (Secret Key Shares) and a public validator key. - Key shards are stored by independent Operator nodes, ensuring no single entity possesses the complete private key. 2. **DVT Fault-Tolerant Validation Network** - Validator tasks (such as block proposals and attestations) are collaboratively executed by multiple Operator nodes, requiring threshold signatures (e.g., 3-of-4) to complete operations. - Even if some nodes are offline or malicious, Lido CSM's staking services can continue to operate. 3. **Seamless Integration with Lido CSM Contracts** - Users can directly invoke Lido CSM contracts through the Cluster Node front-end, automating batch staking (e.g., submitting hundreds of deposits in a single transaction), significantly enhancing staking efficiency. ## Workflow ![Cluster Node DKG workflow](https://hackmd.io/_uploads/BkNQ-JAq1x.png) ### 1. Initialize Validator Generation Lido CSM users connect their wallets through the Cluster Node App and initiate the Validator generation process: - Users bind their Owner identity through the Cluster Contract. - Users trigger the `generateDepositData` task, initiating the DKG process. ### 2. Distributed Key Generation (DKG) The Cluster Node App coordinates designated Operator Nodes to execute the DKG protocol: - Multiple Operator nodes (e.g., Op1, Op2, Op3, Op4) independently participate in computations, generating shared keys for the Validator. - Each Operator node generates Deposit Data with valid signatures. - All data is securely transmitted to the Cluster Node Service and stored in a database, accessible only by the Owner. ### 3. Data Collection and Verification The Cluster Node Service collects and verifies critical data from all Operator Nodes: - **Validator public key:** The public key of the Validator. - **Operator IDs:** A list of IDs for all Operator nodes participating in the DKG. - **Encrypted shared key (Encrypted key share):** Encrypted key shards (Secret Key Share). - **Key share public key:** Public key of the key shard (Public Key Share). - **Deposit data:** Deposit Data of the Validator. ### 4. Integration with Lido CSM For Lido CSM users, the Cluster Node provides a dedicated integration process: - Users select the generated Validator through the Cluster Node App. - Users invoke the Lido CSM contract through the Cluster Node App, enabling staking operations of unlimited scale. ### 5. Validator Activation and Operation The final step registers the Validator to the SafeStake network: - Users call the `registerValidator` method of the SafeStake Network Contract through the Cluster Node App. - The Validator is officially activated and begins executing tasks within the network. - Lido CSM users can monitor Validator performance through the Cluster Node App. ## Funding Request We’ve spent more than 20 weeks to build this module as a fundamental supplement for Lido CSM. We’d like to apply for the Boulder grant. **Address:** 0xf9d6d0f7cd8d034fa26f5c81edcd1e3b0d31763b ## GitHub Repository - [SafeStake Network Contract](https://github.com/ParaState/SafeStake-Network-Contract) - [SafeStake Operator](https://github.com/ParaState/SafeStakeOperator) - [Cluster Node Service](https://github.com/ParaState/ClusterNodeAPI) - [Cluster Node App](https://github.com/ParaState/cluster-node-app) ## Contact Information - Telegram: [Leon](https://t.me/huliang42) - X: [SafeStake](https://x.com/safestakedvt)