Introduction
Metis Foundation proposes the deployment of wstETH (Wrapped staked ETH) to Metis, with the ultimate goal of recognizing the wstETH bridging components by the Lido DAO.
1. Metis’s Ecosystem:
This proposal is for wstETH deployment on Metis Andromeda Mainnet. Metis is the first Layer2 running a decentralized sequencer, which achieves full decentralization, eliminates single points of failure, and properly align incentives across all network participants. Metis just recently celebrated its third anniversary and currently ranks third among all Validiums & Optimiums TVL according to L2 Beat with more than $300M.
2. High Demand for wstETH:
Lido’s wstETH holds a dominant market share of staked ETH and offers seamless interoperability within DeFi platforms. As a result, major ecosystems like Metis have a high demand for wstETH because it enables users to leverage their stETH assets across various DeFi protocols, such as using it as collateral, engaging in lending, farming, indexing, minting, and utilizing vaults and stablecoins. Recognized as one of the most valuable cryptocurrencies by market capitalization, wstETH opens up numerous opportunities for users to maximize their stETH holdings within the DeFi space.
3. Implementation:
The implementation is highly inspired by the bridging methodology provided by Lido to integrate Optimism here. The aim was to build the same functionality for Metis taking into account the differences between the native bridging on the two networks while adding the new features recommended by the wstETH rollup bridging guide.
The bridges’ contracts use Lock-and-mint bridge mechanics and AccessControlEnumerable for ACL. The bridges contracts should be governed by the Lido DAO on Ethereum mainnet. Therefore, we deployed AAVE’s Optimism bridge executor on Metis Andromeda to facilitate the governance from L1. The wstETH contract deployed on Metis Andromeda follows the bridged ERC-20 token standard by Metis, and it incorporates EIP-2612 permit feature enhanced with EIP-1271.
Lido’s emergency L1 and L2 multi-sig wallets were given a disabler role on the bridges contracts. The emergency multi-sigs have the capability to disable deposits and withdrawals only on their respective networks. This can be beneficial in emergency situations where bridge endpoints or token upgrades are needed or, potentially, funds are at risk. Only the Lido Aragon Agent has the capability to enable bridge operations between the networks.
4. Audits:
- Lido L2 Bridge Review by OffBeat Security
- Lido Bridge Bytecode and Storage Verification by OffBeat Security
5. Addresses
Below is a list of address on Metis Andromeda (L2) and Ethereum mainnet (L1):
BRIDGE_EXECUTOR (Optimism Bridge Executor): 0x149AE66979c304C03EB12F0DEA876446b5bB37E1
Emergency Brakes L2 Multisig: 0x9Bff79BF7226cB5C16d0Cca9c1dc60450feE560d
L1_TOKEN (original wstETH): 0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0
L2_TOKEN (proxy): 0x84a600039E7C1169dA4aF41513763883D583fcC3
L2_TOKEN (implementation): 0x65D7154B9aB83757CD8cB1d12e642B313E5Ae001
L1_ERC20_TOKEN_BRIDGE (proxy): 0x2b329D37FcBCBf22b9B0bB473789fC27EB28494B
L1_ERC20_TOKEN_BRIDGE (implementation): 0xdA5Bb509B1Ffa1709C23f10B4Ad732d60611EE3b
L2_ERC20_TOKEN_BRIDGE (proxy): 0xfac6B64b91fb112bbd1dCc48e7EA7310FbdF33a5
L2_ERC20_TOKEN_BRIDGE (implementation): 0x3502269b1837A04Cc6aBAa7fC57bFDDBF2AbF822
