Anchor vault upgrade. On-chain voting announcement

Proposals
1

Context

In June 2022, a proposal was published on the research forum to discontinue the stETH <> bETH Anchor integration. A follow-up snapshot vote ratified the proposal.

Upgrade announcement

The current announcement proclaims an implementation of the proposal above (in the form of the AnchorVault on-chain upgrade together with necessary actions with UI frontends and auxiliary tooling).

The hosted UI frontend (https://anchor.lido.fi/) would be shutting down after November, 6th. It will be still possible to withdraw stETH funds by burning bETH either via Etherscan or via the IPFS version of the widget.

The upgrade action plan is as follows:

  • run a vote to perform an upgrade to the AnchorVault which prevents bETH from minting;
  • stop the rewards distribution bot;
  • sunset the hosted version of the Anchor widget UI.

Rewards distribution notice

At the moment of writing, ~2768 stETH is locked on the contract. Upon the vote enactment (if supported), users will no longer be able to submit stETH and mint bETH. The withdrawal of funds continues to work without deadline boundaries, however rewards distribution will be discontinued and bETH holders redeem their stETH with 1:1 ratio except only for scaling penalties down on hypothetical severe protocol losses.

Tentative timeline

  • Oct-3-2023 (Tue): Start Aragon voting.
  • Oct-5-2023 (Thu): Main voting phase ends.
  • Oct-6-2023 (Fri):
    • Objection phase and overall voting conclude. Enactment if passed.
    • Update https://anchor.lido.fi/ for supporting a new version
    • Shutdown the reward distribution bot
  • Nov-6-2023 (Mon): Discontinue support of the hosted UI (https://anchor.lido.fi/), add IPFS version of UI

Technical details

A list of the major AnchorVault changes:

  • added a deprecation notice
  • disabled submit function - users cannot submit stETH and mint bETH anymore
  • disabled collect_rewards function
  • removed can_deposit_or_withdraw function
  • removed emergency_admin - only DAO Agent can pause or resume the contract now
  • cleaned up unused addresses, variables, interfaces and constants

Voting script

The voting script item is planned to be added to omnibus onchain vote.

Note on timings and contingencies

In case of operational obstacles or last-minute security findings, the Anchor Vault upgrade will be rescheduled, and new dates will be communicated here in the thread.

Discussion

Please let us know if you have any additional input or sentiment about this announcement.

6 Likes
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Hello, statemind.io here. We were tasked with a code review of the anchor vault upgrade We are glad to report that no open vulnerabilities were found. Cheers, and happy sunsetting :slight_smile:

6 Likes
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Thank you for posting the announcement and providing all of the explanations :+1:

The code is good and safe for me and looking forward to seeing this story end gracefully.

NB: an IPFS version of the widget will be deployed and shared here later on.

2 Likes
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Hi there, Gregory of the Lido Audits Committee here. Chiming in to add more color regarding the security assessment of this upgrade.
Considering audit options we found the risks imposed by this upgrade on the protocol participants and stakeholders to be fairly limited.

  • In fact, the total amount of stETH held in the Anchor vault is currently under 2,800 stETH, and is not expected to increase since the integration isn’t live for a long time now.
  • Besides, the contracts involved aren’t connected to the Core protocol, Oracle, and DAO contracts in any way, which isolates risks from other Lido assets.
  • Additionally, the scope of the upgrades includes changes that we found to be somewhat trivial, while a full-fledged audit would require significant time, effort, and funds to add little security.

Based on the reasons above, it has been decided to only submit the code to our long-time partners at Statemind for external review – on top of already pretty robust internal Lido security standards.
I would like to thank @Misha_Statemind and the team for their exemplary performance (just as ever).

3 Likes
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The new one on-chain voting has started!
https://vote.lido.fi/vote/165
It includes several topics for voting. Item 10 is dedicated to the Anchor Sunset.

Please check out and submit your votes!

3 Likes
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The voting was successful and supported by the DAO.
Enactment tx Ethereum Transaction Hash (Txhash) Details | Etherscan

The implementation for Anchor vault has been changed. Users cannot submit stETH and mint bETH anymore. The full list of changes is available in the initial post.

Thank you to everyone who voted :pray:

5 Likes
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Anchor widget supporting has been discontinued. UI redirects to IPFS version now.
Thanks to everyone for participating!

3 Likes