In the future, the competition in the LSD race shows no signs of ending. Currently, Distributed Validator Technology products like Diva are playing an important role, being an indispensable part of the staking infrastructure in the development of Ethereum. So what is the Diva Protocol project? Let's find out details in the article below.
What is Diva Protocol?
Diva protocol is an Ethereum liquidity staking protocol, powered by Distributed Validator Technology (DVT). It takes on the role of an intermediary operator, establishing a direct connection between operator and staker.
Diva's vision is to build a peer-to-peer distributed verification network to perform authentication processes collaboratively. With the support of DVT technology, Diva aims to achieve a truly decentralized staking model on the Ethereum platform
Diva's mechanism of action
Problems Ethereum is facing
After Ethereum switches from Proof of Work (POW) to Proof of Stake (POS) in 2022, running an Ethereum node requires at least 32 ETH as collateral, creating a high threshold and causing many investors to sell Individuals cannot participate. High centralization in Ethereum staking pools and control over validators creates risks of increased centralization.
Large exchanges like Coinbase and Kraken can control ETH and validators, leading to an imbalance between the centralized values and decentralized spirit of Ethereum. These issues pose challenges for sustainable and decentralized development in Ethereum staking.
Diva's mechanism of action
Liquid Stakers
Liquid Stakers participants stake ETH to receive divETH, which automatically generates ETH Staking Rewards (if applicable). Anyone can become a Liquid Staker with no minimum ETH requirement. Those who stake ETH into the Diva Smart Contract will immediately receive a transferable voting token called divETH, representing the ETH they staked+ any Staking rewards it generates.
Diva chose "liquid" as her staking choice because when stakers receive divETH, it can be transferred or traded immediately, with no strings attached.
Wallets holding divETH will see their balance updated daily to reflect its Staking Rewards (or penalties, if applicable). This is done through the rebasing mechanism.
The divETH token can:
- Be redeemed for ETH at any time by requesting a withdrawal from the Diva Staking Contract.
- Used in the DeFi ecosystem for Lending, Farming, Bridge, etc.
- ERC20 standard token allows integration with most DeFi applications.
- If needed, divETH can be packaged into wdivETH, a static balance voting token.
Operators
Operators managing Diva nodes can stake some divETH as collateral to secure Ethereum and generate additional divETH Rewards for Operators.
An operator who correctly performs its verification task will receive divETH as the Operator Reward, in addition to the divETH Staking Reward. To encourage positive behavior, an operator who makes a mistake or misses their verification task can be penalized on staked divETH.
Operators can only receive Key Shares when they provide enough divETH as collateral for the Diva Smart Contract. If an operator causes any loss, this collateral can be transferred to the Bettor as compensation:
- Liquid Stakers receive Staking Rewards protected by operators' collateral.
- Operators receive basic Staking Rewards for their divETH collateral + Operator Rewards.
- The more divETH an operator deposits, the more Key Shares they can receive, increasing their ability to generate rewards.
Non-custodial validation
Unlike other solutions, Operators do not hold assets at all. They never have access to the verifier's funds or key shares. The Diva Smart Contract acts as a bridge, placing ETH into the Ethereum Consensus Layer where they are used to establish validators.
Each Ethereum 32E validator is operated by 16 Diva Key Shares, distributed to different Operators who have placed enough collateral. When a verifier needs to sign its verification task, at least 2/3 of its Key Shares need to reach consensus on what to sign in order to take any action.
This 66% consensus is the key to Diva's private DVT, making the system more reliable and secure. Diva Staking generates keys using Distributed Key Generation (DKG) for verification signing using BLS threshold signature "Boneh–Lynn–Shacham"
Highlights of the Diva project
Diva's DVT technology plays an important role in reducing the centralization of staking services. The DVT architecture offers unique characteristics, including:
- Decentralized Architecture: No one party can fully own the authentication key. This helps reduce the concentration of power and ensure fairness in the staking process.
- Standardized P2P Network: P2P peer-to-peer network is standardized, helping each signer's offline activity not affect the overall operation of the network. This increases system stability and flexibility.
- Consistent Economic Model: Diva defines a consistent economic model between stakers and DVT operators. This solves the problem of trust and fairness in the distribution of operator rewards, penalties and collateral, creating favorable conditions for both parties involved.
DIVA token information
DIVA Tokenomics
Name: Diva
Ticker: DIVA
Blockchain: Ethereum.
Token Standard: ERC20.
Contracts: 0xBFAbdE619ed5C4311811cF422562709710DB587d
Total Supply: 1,000,000,000 DIVA
DIVA Token Allocation
DIVA Token release schedule
(update...)
DIVA Token use case
- Staking: DIVA token holders can stake them into the Diva ecosystem, becoming stakers. Staking offers the opportunity to earn divETH, a transferable token representing the staked ETH along with staking rewards.
- Participate in governance: DIVA token holders can have governance rights in the Diva DAO. They can participate in the decision-making process regarding the development and evolution of the Diva protocol.
- Reward distribution: DIVA tokens participate in the reward distribution mechanism for operators.
Diva Protocol Investors
In January 2023, Diva successfully raised 3.5 million USD with A&T CAPITAL as the lead investor. In addition, the project attracted the interest and participation of many famous investors such as Gnosis, Bankless, OKX Ventures, staked.vc, Aave, EthGlobal, EigenLaye r and Aragon.
Should I invest in Diva Protocol?
With the LSD tracking space expanding and large enough scale, there are currently only about 17 million ETH committed to Ethereum, accounting for a commitment rate of 14.36%. Compared with POS public chains, the commitment rate can reach more than 60%. With the emergence of the Ethereum Shanghai upgrade and the continued development of the LSD sector, it is expected that Ethereum's commitment rate will continue to increase from 14% to 60%. In the future, there are still many opportunities for development, and the entire LSD race may become a battlefield worth hundreds of billions of dollars.
DVT, especially potential projects like Diva, will play an important role in supporting LSD's narrative structure. The entire racetrack is witnessing a technological transformation, and DVT is increasingly becoming a committed solution that is positively evaluated by the public. Projects like Diva have the potential to play a key role in revolutionizing the industry and changing market opportunities. Investing can offer great opportunities in this context.
Summary
Diva, the Ethereum liquidity staking project with DVT technology, plays an important role in the LSD race on Ethereum. DVT's decentralized architecture and standardized P2P network help reduce centralization of power and increase stability.
Diva's consistent economic model solves the problem of trust and fairness, creating favorable conditions for stakers and DVT operators. Diva has important potential in the development of the market, being an investment opportunity in the context of technological transformation and revolutionizing the LSD racing industry on Ethereum.
