Thank you for this proposal @steakhouse.
We support this proposal as it aligns with what we’re building at Karak. Lido’s approach to building the most secure and decentralized LST allows a protocol such as Karak to:
- Unlock more value for stETH users via restaking
- Drive more TVL as a trusted staking partner for native restaking
- Focus on restaking while allowing Lido to manage the ETH staking aspect
- Potentially onboard existing Lido operators to operate Distributed Secure Services (DSS) on Karak
Currently, Karak treats stETH as a first-class citizen asset in the protocol with no intention of ever converting it to another LST or LRT because of our fundamental belief that it is a DSS’s prerogative to decide what assets it wants to accept.
We encourage Lido to remain neutral among all existing and new restaking protocols and instead, aim to create functionality that all restaking protocols can leverage. This would make it much more attractive to simply accept stETH versus engineering a native staking solution from scratch.
Finally, we would be happy to support and explore joining the Alliance working group to help make Lido and the broader community a significant contributor, and benefactor, of the restaking economy.