Summary
A proposal to engage Hasu as a Strategic Advisor to Lido, incl. proposed duties and compensation.
Motivation
A business strategy is a high-level plan for a business to achieve its mission. In the context of Lido, that mission is to make staking accessible to everyone and unlock liquidity on their stake by issuing a liquid staking tokens, allowing stakers to yearn yield from PoS and Defi at the same time.
Research by Hasu and Georgios Konstantopoulos suggests that the market for liquid staking will be winner-take-all: Users want the most liquid staking tokens, which drives further business to the current market leader, creating a virtuous cycle. As a result, Lido will have a binary outcome on most blockchains it competes on.
To raise the stakes even further, new research by Flashbots and Vitalik Buterin suggests that a validator who controls several blockchains is uniquely positioned to capture cross-chain MEV. As a result, Lido‘s outcome on Ethereum may directly influence its outcome on Solana, Avalanche, Polygon, etc., and vice versa.
Win or lose, the specific outcome depends on Lido‘s ability to juggle and execute on several business goals:
- Improve user demand to stake with Lido and receive a staking token
- Improve liquidity and network effect of the domain-specific staking token in both Defi and Cefi
- Provide stakers the best yield, incl. capturing the maximum possible MEV. Especially on chains without a Flashbots equivalent, this is a very difficult challenge
- Improve the quality and diversity of node operators
- Improve the trustlessness of the system
We believe engaging Hasu as Strategic Advisor will increase the odds of reaching these objectives.
On Hasu: He currently leads Strategy at Flashbots, is a research collaborator at Paradigm, hosts the Uncommon Core podcast, and participates as a delegate in MakerDAO. For more information, see https://hasu.blog/.
Objectives and responsibilities
Hasu’s goals & responsibilities as a strategic advisor would be
- Assist the Lido leadership team with advice on strategic decisions whenever requested
- Help with communication, such as The Road to Trustless Ethereum Staking - which Hasu wrote in collaboration with Georgios Konstantopoulos and the Lido team
- Represent Lido in podcasts and the media
- Help Lido identify potential investments and strategic partnerships, and execute on them
- Participate as a delegate and help decentralize Lido’s governance
For the past year, Hasu has already been advising Lido on an informal basis. We believe that his knowledge about PoS and MEV market structure can be a valuable asset over the next years, which will be decisive for Lido’s success or failure.
The average time investment will be 4-8 hours per month.
Compensation
The proposed compensation for this strategic advisory is 600,000 LDO vesting over 3 years, through a yet-to-be-formed Lido Foundation.
That represents 0.06% of the token supply, a fairly standard market rate for a strategic advisor in a Series B+ startup.
If Hasu is not delivering on the above objectives and responsibilities, the Lido DAO can decide to terminate this engagement at any time.