Temperature Check | wstETH Deployment to Lisk and Ownership Acceptance by Lido DAO

Introduction

The Lisk team proposes to deploy Lido wstETH ERC20 token and relative bridging contracts on the Lisk L2. The deployment would be done according to the guidelines given in GitHub - lidofinance/lido-l2 for Optimism and following other related proposals for other L2s built on the Op stack. If this temperature check is successful, after the testnet deployment, an official governance proposal will be created to move administrative rights over the bridge to the Lido DAO.

Lisk’s mission and goal

Lisk recently transitioned to become an Ethereum Layer 2, leveraging the OP Stack and Gelato’s Rollup-as-a-Service to integrate with the Optimism Superchain. The testnet has been launched in Q1 2024, while the developer mainnet and public mainnet are planned for Q2 and Q3 2024 respectively.

Lisk’s mission is to provide Web3 builders with the most attractive ecosystem to realize their products focused on real-world use cases in emerging markets.

In preparation for the launch, Lisk has deepened its relationships within emerging markets by securing government contracts and specific incubation programs with respected partners on the ground that will have as a goal providing the underlying developer platform, mentorship, and initial grant funding to Web3 startups.

Synergies between Lido and Lisk

Reward generating tokens create new opportunities for users to gain passive income without compromising on the ability to participate in DeFi protocols and in general interact with the blockchain. In this sense, we want to make the UX for using reward generating tokens as seamless as possible. To achieve this, we plan to integrate a swap-and-bridge functionality to our bridge portal that allows users to swap ETH for wstETH before bridging to Lisk. Furthermore we will implement the tools necessary to pay transaction fees with wstETH rather than ETH.

We believe that Lido and Lisk will mutually benefit from this integration: On one hand, by integrating Lido reward generating tokens, Lisk users will get access to the biggest staking pools; On the other hand, Lido will get access to users from emerging markets.

Lido deployment on Lisk

Like other L2s that already deployed Lido contracts, Lisk is built with the Optimism stack. Because of this, integrating wstETH on Lisk will take advantage of the experience acquired by these projects.

We propose to deploy the wstETH ERC20 token on Lisk following the steps indicated in GitHub - lidofinance/lido-l2 for Optimism. In particular, the Lisk team will:

  1. Deploy the wstETH contract on the Lisk L2 and the relative L1 and L2 standard bridge contracts on the Lisk Sepolia testnet;
  2. If the deployment audit and security checks are successful, proceed with the deployment on the Lisk mainnet;
  3. Create a snapshot proposal to transfer administrative rights over the bridge contracts (in particular the BridgingManager contract) to the Lido DAO;
  4. If the proposal is accepted, integrate a swap-and-bridge mechanism to the bridge UI to allow users to easily swap ETH to wstETH before bridging to the Lisk L2.

References

Lisk on L2beat: Lisk – L2BEAT

Related proposals:

Guides

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These are the new deployments on Sepolia (L1) and Lisk Sepolia (L2):

Existing deployments (from the guide for Sepolia):

Roles given:

  • Lido DAO Agent is the ultimate admin and role holder on L1:
    • Proxy admin for L1ERC20TokenBridge
    • DEFAULT_ADMIN_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_ENABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_ENABLER_ROLE for L1ERC20TokenBridge
  • OptimismBridgeExecutor is the ultimate admin and role holder on L2 (getEthereumGovernanceExecutor returns the Lido DAO Agent):
    • Proxy admin for wstETH ERC20Bridged, L2ERC20TokenBridge
    • DEFAULT_ADMIN_ROLE for L2ERC20TokenBridge
    • WITHDRAWALS_DISABLER_ROLE for L2ERC20TokenBridge
    • WITHDRAWALS_ENABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_ENABLER_ROLE for L2ERC20TokenBridge
  • Emergency Brakes L1 Multisig:
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
  • Emergency Brakes L2 Multisig:
    • WITHDRAWALS_DISABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L2ERC20TokenBridge
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We deployed the SwapAndBridge contract on Sepolia L1 targeting Lisk L2.

To test the user flow, you just need to send ETH to the relevant contract on Sepolia L1. After ~1 minute you will receive wstETH on Lisk or Optimism L2.

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We redeployed the Lido bridge on Sepolia, these are the new addresses:

We also opened a PR on diffyscan to include the config files for this deployment: Cfg: add wstETH on Lisk Sepolia by ricott1 · Pull Request #54 · lidofinance/diffyscan · GitHub

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