[RCC-3] [LIDO-1] Introduction to the resilience roadmap

[steakhouse]

Updating on December and January actuals from the various service entities:

Notable line items include:

• Timing difference on smart contract audits that had been budgeted for December but hit in January, likely to be other timing mismatches over the coming months as audits complete for various withdrawal-related deliverables
• Another timing difference on unspent contingencies related to legal fees for set up costs and incorporation expenses

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@Bob

Thanks for sharing this.

You mention that “there is scant data in defining unit costs per product or block.”

The development of such metrics will clearly be of benefit to LSD providers when it comes to the analysis, reporting and audit of their activities.

Can you elaborate about what you expect the cost components to be? Are you referring to the whole gamut of direct and indirect costs across Lido for example and is that then the numerator over a denominator of the number of blocks validated?

We doubt that the answer is as simple as that. We’re keen to understand the starting assumptions behind that statement as to what’s currently not being captured.

Can you elaborate?

Thanks

Missed this earlier, apologies.

Still working on developing this with the Analytics team. Keen to get your views here. A simplified approach to take is the ‘thin protocol’ view where the Lido protocol facilitates interactions between stakers and validators. In this instance, the ‘unit costs’ could be abstracted to provisions for treasury, rewards to node operators, provisions for slashing protection.

All other costs are therefore, in some sense, overhead and actually probably more like research and development than anything else. In this hypothesis you could expect operating expenses to trend down as a % of TVL over time, both through TVL growth and through greater automation.