Gm Lido Delegates,
First and foremost, we commend the efforts of Axelar and Wormhole for putting together this proposal that follows a more collaborative approach to the bridging of key assets like wstETH.
Our team at LI.FI, in collaboration with Celer, Kydo, and the Uniswap Bridge committee, has been working on an implementation of a Multi Message Aggregation (MMA).
We want to offer this solution as an alternative to the structure laid out in this proposal, as the capabilities of both solutions are quite similar and the code for MMA has already been audited by Trail of Bits.
MMA implementation: GitHub - MultiMessageAggregation/multibridge: Send Cross-Chain Messages through Multiple Bridges
Audit by Trail of Bits: https://github.com/MultiMessageAggregation/multibridge/blob/main/audits/2023-11-13-ToB.pdf
The MMA framework supports a quorum of 2/2 with Axelar and Wormhole integrated for BNB Chain, with the ability to add further bridges any time in the future.
The original MMA proposal was set out to mainly handle cross-chain governance and had timelocks. However, we’ve added the functionality to handle token transfers as well, combining it with the xERC20 standard.
The combination of MMA and xERC20 allows for rate limits on each individual configuration with daily mint and burn limits. This setup allows for each bridge to mint a limited number of tokens without needing a 2/2 quorum as it saves gas while using the 2/2 quorum for unlimited minting and burning rights.
We envision the xERC20 configuration with MMA to be like this:
- Axelar: daily mint/burn limit of $2m
- Wormhole: daily mint/burn limit of $2m
- MMA: unlimited mint/burn limit
This configuration is designed to be cost-effective for retail users through individual bridges, while the MMA enables arbitrageurs to handle larger volumes for arbitrage purposes.
The code for this implementation is fully open source and can be reviewed here: https://github.com/lifinance/MMAxERC20
This schematic shows that the structural flow of both proposals is almost identical:
We’re happy to engage in constructive discussions with all stakeholders involved in this proposal.
Our goal is to collaboratively find the most secure and efficient path forward for Lido DAO’s cross-chain expansion.
Thank you for considering our proposal.