wstETH Deployment on Mode

Proposals
1

Introduction:

The Mode core team proposes the deployment of wstETH (Wrapped staked ETH) to Mode, with the ultimate goal of acceptance of ownership of the wstETH bridging components by the Lido DAO.

1. Mode’s Rapid Growth and Ecosystem:

Mode is positioned to be the DeFi hub of the Superchain and has received support from Optimism in the form of an OP grant worth 2 million OP. Mode launched just 12 weeks ago and has already grown to 700m in overall TVL and an impressive 550m in dApp TVL in a short timeline since mainnet release. We see these numbers continue to grow as we bring in new assets like wstETH and useful DeFi products to the ecosystem.

wstETH has already been deployed to Optimism and Base, two of the biggest L2s that are also in the Superchain. The Mode core team feels it is strategically beneficial for the Lido DAO to also consider Mode as the next ecosystem to deploy their asset.

Reference: DeFiLlama Ranking | L2Beat Ranking

2. High Demand for wstETH:

Lido is a very important and trusted asset within the overall crypto ecosystem. It is the top reward bearing asset by marketcap and its deployment on Mode would unlock new opportunities for our users and the dApps that are deployed within Mode.

All of the top dApps inside of the Mode ecosystem would love to integrate wstETH from the moment the asset is live on the chain. Our user base would enjoy having access to the reward bearing asset within the Mode ecosystem so they can increase their efficiency for their onchain strategies.

Mode also has an accelerator program is centred around products that optimize rewards for onchain users. We would love to include wstETH as an asset developers can build off of if the Lido DAO decides to accept ownership of the bridging components outlined in this proposal.

3. Canonical Bridge for wstETH:

Like OP and Base the best approach for deploying wstETH on Mode is through the canonical bridge.

The Mode core team sees the importance of Lido to our long term success and took action to deploy wstETH to Mode testnet using the same open-source solution used for Optimism deployment (GitHub - lidofinance/lido-l2 14). The management of wstETH bridging components are designed to be controlled by the Lido DAO (GitHub - lidofinance/governance-crosschain-bridges: This repo contains the crosschain governance bridges used for the Aave markets deployed across different networks. All of the pieces are in place for wstETH to come to Mode and we would propose Lido DAO formally accept ownership of the wstETH bridging components mentioned through signalling a snapshot vote.

Conclusion

If Lido chooses to accept the deployment of wstETH within the Mode blockchain and take over ownership of the bridging components associated with its deployment this would be a positive and significant step towards diversifying the reward bearing assets within Mode’s ecosystem and open up a new userbase for Lido. Mode users would love to use wstETH for their strategies on dApps within Mode and the recent growth of staking assets in the ecosystem highlights that assets like wstETH will have a bright future within Mode.

Audits

Deployment artifacts and levers setup

Deployments on Mainnet (L1) and Mode (L2):

Levers setup:

8 Likes
2

After speaking with the staff at Mode and at Lido the following update has been made to the proposal.

Deployments on Sepolia testnet (L1) and Mode (L2):

3

Hey, thank you for posting the proposal!

It would be great to see wstETH available on Superchain :red_circle:

Could you spot the expected integrations or projects that will be unlocked with wstETH on Mode?

1 Like
4

Hi TheDZhon here are a few that come to mind to start with:

If you have more product experiences you like to see with wstETH let us know and we can explore the ecosystem to see what is possible.

3 Likes
5

Here is the Cantina mainnet verification report to bring wstETH to Mode.

report-review-mode-wsteth-mainnet-verification-final copy
report-review-mode-wsteth-mainnet-verification-final copy595×841 24.2 KB

2 Likes
6

GM, the verification report has been re-uploaded to GH for the sake of accessibility:

1 Like
7

Hi @AdamTheWhale! Could you please also share the implementations’ addresses here

1 Like
8

Hello @zuzu_eeka - I updated the main post and Sepolia addresses to include the implementation addresses as requested.

2 Likes
9

A working group of the Lido on Ethereum protocol contributors (@TheDZhon,
@arwer13) has evaluated the current proposal and ended up with the following:

Namely, the ACL and levers setup is:

  • For OptimismBridgeExecutor
  • On L1ERC20TokenBridge contract Lido DAO Agent is holder of roles:
    • DEFAULT_ADMIN_ROLE
    • WITHDRAWALS_DISABLER_ROLE
    • WITHDRAWALS_ENABLER_ROLE
    • DEPOSITS_DISABLER_ROLE
    • DEPOSITS_ENABLER_ROLE
  • On L2ERC20TokenBridge contract ScrollBridgeExecutor is holder of roles:
    • 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 breaks msig on L1 is 0x73b047fe6337183A454c5217241D780a932777bD , 3/5 threshold, holds roles:
    • WITHDRAWALS_DISABLER_ROLE of L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE of L1ERC20TokenBridge
  • Emergency breaks msig on L2 is a new one 0x244912352A639001ceCFa208cDaa7CB474c9eadE inheriting the same EOAs as for L1, 3/5 threshold, holds roles:
    • WITHDRAWALS_DISABLER_ROLE of L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE of L2ERC20TokenBridge
4 Likes
10

Snapshot vote started

The Should the Lido DAO recognize the wstETH Bridge Endpoints on Mode as canonical? Snapshot has started! Please cast your votes before Fri, 09 Aug 2024 16:00:00 GMT :pray:

2 Likes
11

Snapshot vote ended

Thank you all who participated in Should the Lido DAO recognize the wstETH Bridge Endpoints on Mode as canonical? Snapshot, we reached a quorum! :pray:
The results are:
Recognize: 50.3M LDO
Don’t recognize: 1 LDO