TL;DR
This proposal recommends that Lido DAO sponsor the Ethereum Fusaka Audit Contest, an initiative organized by Sherlock in collaboration with the Ethereum Foundation. The contest is scheduled to begin in September 2025 and will run for 4 weeks, with up to $2 million in rewards available for security researchers who participate. By funding this sponsorship, Lido would directly contribute to securing Ethereum’s most important upgrade of the year while also strengthening its long-term visibility, reputation, and access to Sherlock’s security infrastructure.
Background
The Fusaka upgrade is a landmark milestone for Ethereum, incorporating more than a dozen EIPs designed to improve scalability, security, and resilience. The most prominent of these, PeerDAS, will enable more efficient data availability sampling, significantly improving Ethereum’s capacity to support rollups and Layer 2 networks.
Given the importance of this upgrade, the Ethereum Foundation has partnered with Sherlock to organize a global audit contest. Sherlock is a leading Web3 security platform known for its audit contest model, where world-class researchers compete to uncover vulnerabilities in smart contracts and protocol upgrades. This approach has proven highly effective, often surfacing critical issues that traditional audit firms miss, while also providing broader community engagement in protocol security. By sponsoring this contest, Lido contributes directly to the security of Ethereum at a critical moment, ensuring that the upgrade proceeds with maximum confidence in its integrity.
Alignment with Lido DAO’s Mission
Sponsorship of this audit contest is consistent with Lido DAO’s mission and values in multiple ways. Lido relies on Ethereum’s security and decentralization for the health of its liquid staking protocol, and supporting this contest helps ensure Ethereum continues to evolve safely and sustainably. The Fusaka upgrade introduces features that strengthen Ethereum’s scalability and resilience, and by contributing to its security, Lido signals a strong commitment to the ecosystem and to protecting the interests of both validators and stakers.
At the same time, the sponsorship will increase Lido’s visibility across Ethereum Foundation and Sherlock channels, as well as in wider media coverage of the contest. This reinforces Lido’s role as an active contributor to Ethereum’s development and as a leader in promoting the long-term health of the Ethereum ecosystem.
Use of Funds and Benefits
This grant will directly provide value to Lido in the following areas:
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Visibility Benefits
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Placement on the official Fusaka Contest landing page
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Blog post mention from the Ethereum Foundation
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Inclusion in EF’s and Sherlock’s socials announcements
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Inclusion in paid ad campaign (1M+ reach potential)
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Newsletter feature (10k+ subscribers)
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Public Relations Benefits
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Inclusion in earned media coverage (The Block, Cointelegraph, others)
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Recognition in Ethereum Foundation communications
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Long-term Value
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Free bug bounty hosting on Sherlock indefinitely
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25% discount on a future Sherlock Audit Contest, which Lido could leverage for its own protocol audits
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Through this sponsorship, Lido will help secure Ethereum’s most important upgrade of 2025, directly supporting the stability and resilience of the network. Lido DAO will also gain recognition and visibility across some of the most prominent Ethereum communication channels, strengthening its reputation as an ecosystem steward. The permanent security benefits provided by Sherlock, including bug bounty hosting and discounted audit contests, create lasting value that extends beyond the Fusaka upgrade.
Proposed Timeline and Deliverables
September 2025 - Contest Launch
The Fusaka Audit Contest begins. Lido is featured as a sponsor on the official contest landing page, included in the Ethereum Foundation’s launch announcement, and highlighted across various PR channels (social media, newsletter, and paid campaign), with an estimated reach of over 1 million impressions. Media coverage in major outlets such as The Block and Cointelegraph accompanies the launch.
October 2025 - Contest Completion
The contest concludes after four weeks. Results are published, and Lido is recognized in post-contest announcements from the Ethereum Foundation and Sherlock. At this stage, the sponsorship continues to deliver ongoing PR value through continued recognition and mentions.
Post-Contest
Beyond the event itself, the sponsorship secures ongoing value for Lido, including permanent bug bounty hosting on Sherlock and a 25% discount on a future Sherlock Audit Contest that can be applied to Lido’s own protocol audits.
Conclusion
We appreciate LEGO’s consideration of this proposal. With your support, Lido DAO can help secure Ethereum’s most important upgrade of 2025 while gaining meaningful benefits that strengthen the protocol and its community. The sponsorship provides visibility across various channels, recognition in industry media and lasting security advantages through Sherlock’s offerings.
For further discussion please contact:
Email: ilias [at] sherlock [dot] xyz ; TG: iliasc1
Other Resources to Learn more about Sherlock:
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Website: sherlock [dot] xyz
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Contest History: audits [dot] sherlock [dot] xyz/contests
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Sponsorship one-pager: drive [dot] google [dot] com/file/d/11fYpRz9uBVkYZT88GAYlekGWTOkhsJ_i/view
ERC20 address to receive DAI: 0x666B8EbFbF4D5f0CE56962a25635CfF563F13161