Airdropping fork tokens & protecting the peg

It seems there likely will be an airdropped ETH POW fork.

We’ve seen steth depeg from 0.98 to 0.96 on this (people assuming this pow ETH fork will be 4% of ETH market cap)

We should come out and say that if there is any airdropped ETH to ETH stakers, it will be returned to the underlying holders of stETH and that is the policy going forward on ETH and across all chains. Not only do I believe that is the fair thing to do, but right now there is a lot of uncertainty. People have been asking in the discord with no clear answer - “there is no answer to this yet as it’s all hypotheticals. We’ll provide a clear answer if or when it becomes more concrete”

We are already setting up liquidity pool to protect the peg at 0.92 (Setting up an steth-weth pool owned by DAO treasury on Uniswap V3 for the foreseeable merge liquidity risks). Seems like pretty easy thing to do to protect against this outcome and provide clarity to steth holders today and going forward across all chains

With the depeg, LDO will continue to lose share. LDO was taking 90% of incremental share, now its taking 7% and we’ve seen share go from 33% to 31% already. If this depeg continues until withdrawals are enabled and we remain at this incremental share, LDO share likely goes to 20%

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My 2 cents.
I can’t agree that Lido should stand out and support this kind of HF airdrop, which is totally contradicted with the Lido initiative.

Lido has already been gaining a big share of ETH shares with a success. Yes, due to recent stETH discount, the share shrank a little but what makes you think the Lido’s share will keep decreasing after the Merge. For me, there are more and more ETH being staked while Lido should get more TVL from new shares.

Last, if people think the HF token is worth 4% of current ETH marketcap, it is better to buy stETH with 4% discount in dex now!

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I think the best outcome, with the least amount of effort necessary, would be to dump this token for ETH on the market and return the profits to stEth via rebasing

Yep, this could be an option. But it would be nice to provide clarity/policy going forward to steth holders especially as it is a cheap/free way to protect the peg.

First off, personal opinion - the fork is a nothingburger. We shouldn’t spend a lot of effort to manage it because there’s nothing substantial to manage. That’s already more attention than it deserves. Especially true for Lido which is a liquid staking protocol.

Second, in any potential fork it’s extremely unlikely the dao gets an option to handle any forked eth except the one in the treasury. Ether on staking contract will remain on staking contract or maybe will be confiscated to the miners, but won’t get under dao’s control. That’d be counterethical for the fork if that fork had ethical side in the first place.

Third, likely there’ll be no trustless way to sell whatever turns up under governance control. I’ve heard of no decentralized bridge that would work on potential fork - nobodyI know believes in it enough to pour engineer-hours. And we don’t have a legal interface to interact with CEXes from the dao.

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