LEGO Q3 Report + Proposal to Diversify LEGO Budget

The 3rd quarter 2022 ended and we’d like to share a report on LEGO’s achievements for this period.

Quick reminder on what LEGO is

LEGO - the Lido Ecosystem Grants Initiative - is a framework by the Lido DAO to fund initiatives which help benefit and grow the Lido ecosystem. It is designed as a straightforward process through which external contributors can seamlessly gather the funding and resources required to act on their concepts.

By rewarding talent early with developer incentives, bounties, and infrastructure support, LEGO acts as a catalyst for growth and helps to maintain Lido as a leading and most useful liquid staking protocol in the whole space.

You can learn more about LEGO and apply for funding by visiting lego.lido.fi.

Summary of Quarter 3

The 3rd quarter of 2022 saw a number of exciting developments of LEGO, including:

  • Compensations for security assessments of Lido smart contracts and Lido-on-X projects;
  • Research grants the biggest one of which is Ethereum consensus rewards analysis;
  • Lego Council has voted for a Boulder grant for development of Vyper — smart contract language for EVM;
  • Boulder-sized grant to Rocklogic to support SyncLink development;
  • Support of beaconcha.in developers bitfly and many others, more details in Q3’22 report

By the end of this period 268k LDO were allocated to LEGO initiatives or 89% of budget fulfilment. The remaining part is carried over to Q4 and to offset the refilling amount. Please see full overview in Q3’22 report.

Ideas for Q4’22

  • Integration of expected security assessments into RCC (Resourcing and Compensation Committee) budget to free up more funds to ecosystem grants, while LEGO still could be used for critical urgent payments in case of deviations;
  • Optimization of LDO in LEGO budget: Reviewing historical data, we noticed 60% of grantees requested to be paid in stablecoins. In order to meet this demand efficiently, we will switch to requesting 40% of the budget in LDO and 60% in DAI from the DAO. This is a compromise to decrease selling pressure on LDO from grantees who have working capital needs in fiat currencies, but keeps the possibility for contributors to partake in developing the overall ecosystem.
  • We propose to fix LEGO budget at $500k level - historical average spending for 9 previous months. At the beginning of each quarter 40% LDO part of the budget will be calculated using 30d TWAP at the day of Easy Track movement creation, the rest refilled with DAI from the treasury.
  • Individual allowances to be recalculated each quarter: USD equivalent using 30d TWAP is calculated for 15k and 10k LDO (council and nominees respectively), if the wallet of LEGO member has higher or equal balance than calculated allowance - it doesn’t get a refill.

Summing up all mentioned above, current estimated (to be updated during Easy Track creation) refill amount and individual allowances for Q4 are following:

изображение

Snapshot voting to be held from the 6th till the 12th of October and, if successful, Easy Track motion to be created for LEGO’s multi-sig wallet top-up for another quarter of operation. The Snapshot link will be provided here once live.

For more information on proposals shared with LEGO, visit research.lido.fi.

8 Likes

The Snapshot is live!
https://snapshot.org/#/lido-snapshot.eth/proposal/0xa3995b1c5a9805aeb897fe94a0120588be394ba3c177c22c67b55c3d2ed5d590

1 Like

Unfortunately we didn’t reach a quorum, we were just 2M LDO short. :disappointed:
The results of the snapshot are following:

For 48M LDO - 99.99%
Against 6.7K LDO - 0.01%

The reason of it most probably that some folks couldn’t reach their wallets due to being at Devcon this week. We will restart the voting shortly.

But we’ve restarted this Snapshot vote and now we ask you to vote again! Please, take part and cast your votes!
https://snapshot.org/#/lido-snapshot.eth/proposal/0xeeadc3b5bfb4565cca611499c2c39e37e84bab8ad63b4f6a74d73b4151b0e791

3 Likes

And it passed, thank you all for the participation!

2 Likes

We have an update - Easy Track motions #265, #266 and #267 started!

As communicated before - refill amount calculated from the historical average spending of $500k per quarter and 40% LDO 60% DAI split, using 30d TWAP (1.5142 USD for LDO) on the day of tx creation to start Easy Track motion (10-21-2022). This amount then netted with outstanding balance of LDO and stables of LEGO multi-sig and we arrived to the following numbers:

Due to current active limits of Easy Track motions we had to split this refill to 3 separate motions (max. 100,000 DAI per motion so 3 x 99,119 = 297,357 DAI in total).

2 Likes

Good day everyone,

I would like to request the LEGO member rotation from @Edi_ShardLabs to me in order to participate more in the governance processes and have a single point of coordination for Lido on Polygon.

Current address used (Edi is the owner): Address 0x1f5504d362311D17C5e00dD2396f4384B898eA28 | Etherscan

Proposed address to be used (I am the owner): Lido: Deployer | Address 0x59d07dc34B135B17b87840a86BFF7302039E7EDf | Etherscan

I am confirming that this request is mutual.

1 Like