NEC Updates
TL;DR:
There are many networks whose communities want to get Lido wstETH officially available, and in order to optimize the utilization in DeFi the NEC needs to to prioritize networks that will provide a “fertile ground” for expansion. If the network and/or wstETH TVL grows significantly, there is a higher chance to prioritize the processing. All other networks that followed the guidelines will be processed in batches twice a year.
At the same time, the original proposal did not provide sufficient information for re-onboarding in case the NEC or the DAO decided to off-board a certain network from the list of official expansions. In both cases, the re-onboarding decision will not be made by the NEC. It will be left for DAO to decide.
Processing network expansions
The NEC is always trying to optimize the effectiveness of network expansions. Optimizations are done twofold:
- Optimizing the technical and governance process
- Increasing the impact of expansions for the stETH growth
The former was well described in the original proposal and the process will not change for the time being. This update focuses on making the latter more transparent to the communities of networks who want to have stETH officially available.
The NEC prioritizes networks by estimating the impact that such expansion could have on the growth of stETH. In case there are certain added values or differentiating factors (having a clear role of wstETH in the ecosystem supported by grants and/or incentives and fertile conditions for prospering in DeFi) that make the network strategically important, these networks will have higher priority in the NEC expansion queue.
Other networks that followed the guidelines and are ready to be formally accepted by the NEC will be processed twice a year in batches. In order to successfully process the onboarding, the proposer needs to ensure there is an external deployment verification provided (example) along with following the QA checklist that will be shared with projects.
Naturally, if a network and/or wstETH TVL is growing and getting more traction, that will increase the chance to avoid waiting for the next batch, and get processed by the NEC outside of the schedule.
Re-onboarding
In case the network gets off-boarded from the list of official networks (as happened with Starknet, for example), the re-onboarding is possible, but will be left for Lido DAO to decide using a snapshot vote.
Re-onboarding should only be attempted by the original proposer after providing a detailed post about the cause for offboarding and the reasoning why the network should be onboarded again. The community needs to be aware of the implications like potential liquidity fragmentation, migration requirements and similar irregularities.