Summary
TLDR: Obol Labs partners with Relm and Chainproof to offer insurance for Ethereum stakers using distributed validator technology. Insurance could attract risk-conscious institutions to participate in decentralized Ethereum network. Insurance covers slashing, downtime, and key compromise. Cost of insurance will determine its success in bringing institutions into staking.
Key Points
1. Obol Labs has partnered with crypto insurance platforms Relm and Chainproof to offer insurance for Ethereum stakers that use Obol’s distributed validator technology.
2. Obol’s distributed validators let validators run on more than one node, allowing community members to begin validating transactions with less than 32 ETH and potentially decentralize ETH’s pool of validators.
3. The success of the distributed validator insurance largely depends on the cost, as it could attract risk-conscious institutions to participate in DV staking if the insurance is economically feasible.