wstETH Deployment on Mantle

Proposals Lido Multichain
1

1. Introduction

The Mantle Core Contributor Team is submitting this proposal to the community for the deployment of wstETH on Mantle.

Mantle Network is an optimistic Ethereum layer-2 (L2) solution with an EVM-compatible execution environment. Mantle is DAO-governed and employs a modular approach to execution, consensus, settlement, and data availability. In addition to a burgeoning ecosystem with 110+ dApps and counting, Mantle counts among its partners Game7, HyperPlay, EduDAO, Sozu Haus, and EigenLayer. The DAO-led community-driven Mantle possesses one of the largest on-chain treasuries — and the largest when discounting native tokens — including nearly 270K ETH/wstETH/WETH, priming it to be a major player in ETH LST and LSDFi.

2. Mantle Ecosystem Growth

Since its launch, Mantle has seen more than 22.5 million transactions and over 827,000 unique addresses transact on the network. At its peak, it reached 54,650 daily active addresses. To date, more than 3,900 developers have launched over 71,452 contracts.

As of now, Mantle has approximately ~$105 million total value bridged (TVB) and around ~$156 million in total value locked (TVL) across more than 40 different DeFi protocols, according to L2Beat. These metrics indicate a thriving ecosystem that Lido could benefit from by tapping into an existing, active user base.

Mantle Treasury

The Mantle Treasury is unmatched in terms of size. The treasury holds more than $740 million in assets excluding its own tokens (MNT) — the largest of any other DAO — which means ample runway to weather multiple cycles. It also has around $1.42 billion worth of MNT tokens, which provides a significant war chest to incentivize and bootstrap ecosystem growth.

Two proposals, MIP-24, and MIP-25, have since been passed to establish two key authorities that will carry out ecosystem funding and bootstrapping activities.

Mantle EcoFund

The Mantle EcoFund is a strategic initiative designed to inject $200 million into the Mantle ecosystem over the next three years. Comprising $100 million from Mantle’s own Treasury and an additional $100 million matched by Strategic Venture Partners, the EcoFund serves multiple key objectives. These include supporting entrepreneurs and technologies within the Mantle ecosystem, accelerating adoption among developers and dApps, and incentivizing strategic partnerships. The fund will act as a seed investor in high-potential, early-stage projects and has the flexibility to provide additional liquidity or follow-on investments to successful ventures.

Mantle Economics Committee

The Mantle Economics Committee (EC) is a specialized sub-governance body operating under Mantle Governance. It will focus primarily on making informed, risk-averse decisions about the allocation of Mantle Treasury assets, without directly holding custody of these assets.

The Committee is authorized to manage Mantle LSP and Lido ETH staking strategies, with allowances up to 200k ETH, and has the flexibility to enter and exit these strategies based on commercial negotiations and risk evaluations. The Committee adopts a highly conservative risk management approach and operates within governance rules that prioritize caution in strategy entries while allowing quicker exits. Its diverse membership will include representatives from Mantle Governance, the Mantle community, and Mantle Core Contributor teams.

As of the time of writing, the EC has since tabled their first proposal to allocate up to:

  • $160 million in liquidity support for applications
  • $60 million in seed liquidity for RWA-backed stablecoins
  • $18 million in liquidity support for third-party bridges

3. wstETH Demand

Demand for Lido (w)stETH is significantly driven by its utility within major ecosystems, which are leveraging its composability in various DeFi protocols. Notably, wstETH’s overwhelming market share of staked ETH enhances its desirability. Additionally, wstETH’s versatility, being used for a range of DeFi applications including collateral, lending, farming, indexing, minting, vaults, and stables, amplifies its demand further. Mantle aims to leverage this demand for ETH liquid staking tokens and make wstETH one of the core building blocks of the Mantle ecosystem, as well as a core asset of its treasury to sustainably grow its protocol-owned liquidity (POL).

4. Implementation

wstETH has already been deployed onto Mantle via the canonical bridge. This proposed new deployment will be replacing the existing wstETH with a one-way migration pool opened for users to migrate.

The Mantle team has taken the initiative to deploy wstETH to Mantle testnet that uses as a reference the wstETH on Optimism deployment (lidofinance - lido-l2) with some UX enhancements like ERC-2612.

5. Conclusion

In conclusion, deploying wstETH on Mantle is a strategic move to form a mutually beneficial partnership with Lido. Mantle, with its established ecosystem and strong treasury, provides a viable platform for expanding wstETH’s utility and adoption. Conversely, integrating wstETH could enhance Mantle’s DeFi offerings and possibly attract more developers and users. The existing demand for wstETH, along with Mantle’s growth initiatives like the EcoFund and its governance structures, supports a promising integration. This proposal, therefore, encourages the community to support a collaboration that expands the utility of wstETH and aids Mantle in advancing its position in the Ethereum Layer 2 space and the broader blockchain sector.

We propose that the Lido DAO formally accept ownership of the mainnet deployment of the wstETH bridging components referenced through a formal vote.

6. Audits

7. Contracts

8. Ownership, roles, and levers Mainnet setup

  • To be presented concurrently with the Mainnet deployment
11 Likes
2

Thank you for the well-crafted proposal! As a participant of the Network Expansion Group (NEW) I’d like to mention I’m going to participate in the setup review after the mainnet addresses are published.

6 Likes
3

MixBytes team was engaged and has verified wstETH deployment on Mantle. Three security researchers checked the presented information according to the internal checklist. The results are as follows:

  • Mantle network has slightly different features and behavior than Optimism, but these features do not affect wstETH and DAO decision bridging, so presented contracts and architecture can be used without any additional changes to consider.
  • Deployed contracts match the audited scope. All findings from the reports are addressed in the contracts.
  • All contracts were correctly deployed and initialized.
  • The ACL setup was implemented as the NEW contributors requested from the Mantle team without any additional roles and addresses.

It is worth noting that the Mantle native explorer works differently than ethescan-like explorers in some cases. For example, to check a multi-sig structure, it is better to use https://multisig.mantle.xyz/ than native explorer. Also, these contracts OssifiableProxy and OssifiableProxy contain some unnecessary contracts in the deployment verification section.

7 Likes
4

A working group of Lido on Ethereum protocol contributors and NEW participants (@arwer13 and @TheDZhon) has evaluated the current proposal in depth and presents the following findings and observations:

  • The proposed contracts are iterations of the wstETH solution on Optimism. Notable improvements include the addition of ERC-2612 support and resolution of issue #53.
  • The deployment preserves the integrity with the audits [1], [2] (source code, and bytecode wise, with no critical/high issues left unresolved)
  • All configurations and parameters look appropriate and meet expectations
  • The access control list (ACL) setup appears valid concerning the Lido DAO ownership and usage of the Emergency Breaks configuration for both L1 and L2 counterparts.

Complete ACL and levers setup:

  • for the Mantle Governance Bridge Executor (OptimismBridgeExecutor contract is used)
  • A bridge admin and role holder on L1 is the Lido DAO Agent
    • Proxy admin for L1ERC20Bridge
    • DEFAULT_ADMIN_ROLE for L1ERC20Bridge
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20Bridge
    • WITHDRAWALS_ENABLER_ROLE for L1ERC20Bridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20Bridge
    • DEPOSITS_ENABLER_ROLE for L1ERC20Bridge
  • A bridge admin and role holder on L2 is the Mantle Governance Bridge Executor
    • Proxy admin for 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
  • for the proposed wstETH token on L2 (ERC20BridgedPermit)
  • Emergency breaks msig on L1 is 0x73b047fe6337183A454c5217241D780a932777bD, 3/5 threshold:
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
  • Emergency breaks msig on L2 is a new one 0xa8579D42E34398267dE16e6eeeCdb7ED0EFF953C inheriting the same EOAs as for L1, 3/5 threshold:
    • WITHDRAWALS_DISABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L2ERC20TokenBridge
  • An initial deployer has no remaining permissions and levers assigned

We would suggest the Lido DAO consider accepting the wstETH token deployment on Mantle. This step appears logical given [w]stETH’s representation of the broader ecosystem.

5 Likes
5

Snapshot vote started

The Should the Lido DAO recognize the wstETH Bridge Endpoints on Mantle as canonical? Snapshot has started! Please cast your votes before Thu, 14 Dec 2023 16:00:00 GMT :pray:

3 Likes
6

Snapshot vote ended

Unfortunately, the Should the Lido DAO recognize the wstETH Bridge Endpoints on Mantle as canonical? Snapshot hadn’t reached a quorum. :no_entry:
The results are:
Recognize: 47.3M LDO
Don’t recognize: 34.7k LDO

7

Snapshot vote started

The [rerun] Should the Lido DAO recognize the wstETH Bridge Endpoints on Mantle as canonical? Snapshot has started! Please cast your votes before Mon, 25 Dec 2023 16:00:00 GMT :pray:

8

Snapshot vote ended

The [rerun] Should the Lido DAO recognize the wstETH Bridge Endpoints on Mantle as canonical? Snapshot vote concluded!
The results are:
Recognize: 51.4M LDO
Don’t recognize: 118 LDO

2 Likes