Last February Lido has purchased the Unslashed coverage for 196749.858268 ETH from 5% slashing. As there’s more than 250000 ETH pooled already and new Node Operators are joining the mainnet, it could be useful increase the insurance coverage.
Currently Unslashed can provide the coverage for 5% slashing on 385000 ETH. The insurance extension to this amount would cost the Lido about 33 ETH (the exact number varies with insurance token price fluctuations and time passing). The non-consumed ETH at the end of the cycle on June the 22th will be automatically rolled over to provide insurance over the following cycle or could be withdrawn by the Lido DAO. Thus the relatively high cover amount would save Lido from rushing to the buying more insurance in short time.
I support this proposal. I believe the bigger Lido gets, the more important our insurance coverage will be. The treasury has accumulated enough stETH via staking rewards to pay the additional 33 ETH.
It is for transferring 36 stETH to the insurance purchaser contract that we’ve used the last time for the same purpose. The actual amount of stETH spent will be lower but not known yet because of possible fluctuations of stETH/ETH price and insurance premium price; it should be closer to 34-35 stETH. Any unspent amount of stETH will be transferred back to the DAO treasury by the purchaser contract.
We’ve bought the extra insurance to protect another 203885.64563 ETH staked from 5% slashing. This gets the Lido covered for 5% slashing on more than 400000 ETH staked until the June 22nd.