July 31, 2024
Over the course of the next quarter, Boardroom will be supporting Lido DAO by helping to increase the visibility of governance activity. Among our contributions will be bi-monthly governance reports, the first of which we provide below.
We’ve seen some important developments over recent weeks, including the deployment of the Community Staking Module on testnet and the passing of Vote #176, which (among other things) allows for the increase of the staking module’s share limit to 4% of total stake.
Reminder that this week we will see several Snapshot proposals posted (see below).
Proposals
Completed
Vote #176: This on-chain omnibus proposal was executed on Friday, July 26th with 100% voting “YES.” It contained the following two proposals, previously approved via Snapshot:
- Expanding the Simple DVT Module: This proposal expands the Simple DVT Module by allowing larger clusters of up to 500 validators, called Super Simple DVT Clusters, and increasing the staking module’s share limit from 0.5% to 4%. This aims to enhance validator resilience, security, and decentralization. The proposal includes evaluations and performance reports to ensure reliability and proposes a phased implementation.
- Lido Contributors Group Funding: This transfers 180,000 LDO within the EGG st2024 v2 Grant Funding to the PML multisig.
Upcoming Snapshots:
Proposals to be posted this coming Thursday (August 1) for a seven day period, following the regular monthly cadence (see calendar here).
Establish a Public Delegate Platform and Delegate Incentivization Program
The DAO Operations Workstream has proposed working with Agora to create a public delegate platform and begin a six-month pilot Delegate Incentivization Program to boost active voting, enhance discussions, and engage new tokenholders. The plan includes building the public platform, establishing a delegate incentivization program with a $150,000 fund, and organizing delegate rallies. Delegates must meet criteria for participation, and a committee will oversee the program. The proposal has generated positive feedback so far and should be moving to a Snapshot vote imminently.
LIP-25 proposes the Staking Router v2.0 upgrade to enhance Lido DAO’s Ethereum staking. This includes permissionless staking modules and improvements to the Deposit Security Module, Validator Exit Bus Oracle, Accounting Oracle, and reward distribution mechanisms. The goal is to increase security, scalability, and decentralization.
The Mode core team proposes deploying wstETH to the Mode DeFi hub and transferring ownership of wstETH bridging components to the Lido DAO. Mode has rapidly grown to $700M in TVL and seeks to integrate wstETH to enhance its ecosystem. The proposal includes utilizing the canonical bridge for secure and scalable deployment and requires Lido DAO approval via a Snapshot vote.
Wormhole x Axelar | Lido Bridge: Implementation for wstETH on BNB Chain
The wstETH bridge between Ethereum and BNB Chain mainnets has been successfully deployed and is operational. The bridge awaits Lido DAO’s official endorsement through the upcoming governance vote. The new functionality allows wstETH transfers between the networks. Testnet deployment details have been provided for the BNB bridge as have the results of Cyfrin’s most recent audit of the NTT framework.
In discussion
Rated Labs Replacement in the Oracle Set
Rated Labs will exit the Lido oracle set in Q3 2024 due to rising infrastructure and maintenance costs. Responsibilities will be transferred to a suitable candidate, pending Lido DAO approval, within this period. The current proposal is to rotate from Rated to MatrixedLink since they have already participated in the Lido oracle set testnet.
Contributor & Workstream Updates
Forum post: [EGG] Establishing the Community Lifeguards Initiative (CLI) Sub-Committee
@enti has just posted the 2024 - Q2 Community Lifeguard Report. In Q2 2024, CLI supported CS Fleet pilots, aided SDVT operators, and launched the Community Staking Module on testnet. The community of Lido stakers grew by 80%. CLI activities included roundtables and a meme competition, with further grants awarded for community education and events.
Forum post: Community Staking Module
As of July 15th, the Community Staking Module is fully permissionless on testnet. Become an Ethereum validator with no more than 2 ETH.
Forum post: TMC-1: Pipeline to sell stETH at regular intervals for DAI
@steakhouse provides an update: $11,359,597.69 in stablecoins was raised from 3,300 stETH across three transactions. This is the first successful implementation of the Stonks initiative, which seeks to execute treasury swaps via optimistic governance (see Easy Track motions 675 & 676).
Forum post: Staking Router Module Proposal: Simple DVT
The NOM contributor workstream on behalf of the Lido Node Operator Subgovernance Group provided an update on the Simple DVT Super Cluster evaluations held on July 16, 2024. The evaluations classified Node Operators into Curated, Advanced, and Solo/Community stakers. Seventy participants were recommended for 10 clusters, including seven solo/community stakers and 63 professional operators. An additional 28 participants were proposed as backups.
The NOM workstream also provided the second performance report for the 12 Lido x Obol Cohort 1 clusters active on mainnet via the Simple DVT Module. With improvements across all metrics, it is proposed to raise the key limits to 80 validators in a phased manner. Since May 2nd, metrics include 99.96% average uptime, 96.91% validator effectiveness, and an 86.76% block proposal success rate.
Forum post: Community Staking Fleet: The Mu @ Buenos Aires, Argentina
The Community Staking Fleet Pilot has concluded, providing insights into local crypto communities and their stakers. In Argentina, Lido engaged with the MuBuenos event, conducting staking sessions, supporting educational initiatives, and fostering local engagement. This effort highlighted Argentina’s significant crypto community and the potential for further growth in staking activities.
Forum post: Community Staking Fleet Pilot
@Stakesaurus and @Bitskwela report on the conclusion of the Community Staking Fleet Pilot in the Philippines, noting “fertile grounds for crypto adoption.” The project focused on education and included a solo staking workshop.
@Glass_Markets most recent liquidity reports for stETH can be found here.
Community Calls
Node Operator Community Call \#19 took place on July 23rd. Check it out here, or enjoy the recap. Stay tuned for information on next month’s call.