With the Lido on Polygon protocol upgrade now completed, Lido would like to announce the opening of a new Node Operator onboarding round for Lido on Polygon.
You can find the Lido Node Operator portal here. This landing page contains information relating to previous and current onboarding rounds, and provides a general summary of the application process for all permissioned networks on which Lido operates.
Polygon’s validator set currently consists of 100 validators, for which slots were initially granted on a first come, first served basis. As implemented in PIP-4, new validator slots could potentially become available if a Node Operator fails the Final Notice monitoring period (therefore losing their stake) or as the Polygon protocol expands the number of total validators to 105. Through this process new validators for the Polygon protocol will be determined by Polygon multi-sig holders.
Other than these processes, the only way to replace existing validators is to come to an agreement and have them give up their slot, which is represented by the staking NFT held in the owner account. Due to these constraints, Lido is only able to accept Node Operators that are currently in possession of a validator slot and operating a mainnet Polygon validator.
Following the Lido on Polygon protocol upgrade, Node Operators joining the Lido operator set will no longer have to transfer their validator slot to the protocol. In addition, the upgrade will allow for the rebalancing of stake among validators upon both deposits and withdrawals, more equitably reflecting changes in stake delegated to Node Operators through Lido.
All Lido on Polygon validators must maintain a commission of between 0%-5% to be eligible to join and remain in the operator set. There are at least three reward streams for Lido on Polygon operators:
- Node Operators will be able to collect validator rewards accumulated from their own stake.
- Node Operators receive rewards from the commission set on their delegated stake. The commission rate can be between 0%-5%.
- Node Operators will receive Lido on Polygon rewards (in the form of MATIC) based on the total amount of Lido on Polygon stake, according to the below distribution of daily staking rewards:
- 90% gets restaked (i.e. turned into stMATIC),
- 5% goes to the Lido treasury,
- 5% is distributed equally amongst all active Lido on Polygon Node Operators.
If you’ve applied in a previous round but weren’t selected for the short-list, you may indicate that you have already applied and you will not need to fill out the entire form. Alternatively, you may choose to re-fill out the form in case you wish to add additional details to your application.
The application form will be open from February 1 - February 28 23:59 UTC.
Evaluation and Onboarding
Applications will be evaluated by the Lido Node Operator Sub-governance Group (LNOSG) in early-March and a proposed shortlist will be sent to the DAO for approval. Please note that being shortlisted is not a guarantee that you will be onboarded. The DAO ultimately chooses who will be onboarded, and we will be cognizant of DAO and/or community requests to review and propose further options if they are deemed necessary.
Once approved, onboarding new operators usually takes 1-2 weeks, so we aim for the new set of operators to be live on mainnet in mid to late March. This timeline is subject to change depending on the Lido on Polygon v2 upgrade.