wstETH deployment on Starknet

Proposals Lido Multichain
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Introduction

StarkWare proposes the deployment of wstETH (Wrapped staked ETH) to Starknet, with the ultimate goal of recognition of the wstETH bridge endpoints as canonical by the Lido DAO.

Starknet’s Growth and Ecosystem

We believe in the potential of wstETH on Starknet to bring new opportunities within the DeFi ecosystem and boost the demand for wstETH across various platforms.

Since Nov ‘21, developers worldwide have worked tirelessly to build and develop Starknet’s Mainnet, the first Turing-complete Validity Rollup on Ethereum. As a result, Starknet is now the largest developer ecosystem among all L2s, having grown 14% over the past year to become the 8th largest blockchain developer community and the leader in the L2 landscape.

References: Developers Report.

High Demand for wstETH

Lido’s (w)stETH has secured its position as a leading DeFi protocol on Ethereum mainnet. Starknet, as a leading Ethereum scaling solution, is seeing significant demand for the adoption of the wstETH as it opens up opportunities for users to utilize stETH holdings in various DeFi protocols. Launching wstETH on Starknet supports the missions of Lido, Ethereum, and Starknet, making Ethereum scalable, decentralized, and approachable. Therefore, major ecosystems such as Starknet have significant demand for wstETH as it opens up opportunities for users to utilize stETH holdings in various DeFi protocols.

Implementation

Currently, wstETH is bridged to Starknet via StarkGate, the canonical bridge of Starknet developed by StarkWare. All the bridge components, both L1 and L2, are upgradeable. Starkware will enable a cross-chain governance solution that will enable Lido to govern the bridge’s wstETH. We estimate that the feature will be available by the end of Q2 2024.

Next Steps

The relevant source code and audits will be made available after the development of the cross-governance future is finished. These will be published to provide full transparency and accessibility to the Lido community. In addition to the cross-governance feature, we will propose upgrading the wstETH bridge to the latest version of StarkGate, StarkGate 2.0. This version is already live on Goerli and will soon be launched on Mainnet (For other tokens). The community will be encouraged to review the code and raise any questions or concerns they might have before the mainnet launch.

Conclusion

The recognition of wstETH bridge endpoints as canonical of the bridging components by Lido DAO will represent a significant step toward enhancing the DeFi ecosystem within Starknet and the continued adoption of wstETH.The importance of this initiative is underscored by the steady growth and high potential of Starknet, together with the strong demand for wstETH.

We invite the Lido community to engage in discussions and provide feedback as we move forward with this exciting development.

Audits

Mainnet Contracts (StarkGate 1.0)

  • L1 wstETH token address: “0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0”,
  • L1 bridge address: “0xBf67F59D2988A46FBFF7ed79A621778a3Cd3985B”,
  • L2 bridge address: “0x0088eedbe2fe3918b69ccb411713b7fa72079d4eddf291103ccbe41e78a9615c”,
  • L2 wstETH token address: “0x42b8f0484674ca266ac5d08e4ac6a3fe65bd3129795def2dca5c34ecc5f96d2”

Testnet (Goerli) Contracts (StarkGate 2.0)

  • L1 wstETH token address: “0x6320cD32aA674d2898A68ec82e869385Fc5f7E2f”,
  • L1 bridge address: “0x190c98506a5396A30CA759A139F3Fb59EF519A5D”,
  • L2 bridge address: “0x0399a6011b666888d647665fd65d6dcc7c2690c72d4c4454cae987f19f6ef609”,
  • L2 wstETH token address: “0x0335bc6e1cf6d9527da4f8044c505906ad6728aeeddfba8d7000b01b32ffe66b”

Levers setup wstETH StarkGate bridge (suggested):

L1 Ethereum

  • governance_admin - StarkWare extreme cold wallet (Lido DAO agent):
    • Assign governance_admin
    • Assign upgrade_governor
    • Assign app_role_admin
  • upgrade_governor - StarkWare cold wallet (Lido DAO agent):
    • Can upgrade the bridge contract on L1.
  • app_role_admin - StarkWare cold wallet (Lido DAO agent):
    • Assign app_governor
    • Assign token_admin
  • app_governor - StarkWare cold wallet (Lido DAO agent):
    • Change Max TVL limit.
  • token_admin - StarkWare cold wallet (Lido DAO agent):
    • Register token.

L2 Starknet

  • governance_admin - StarkWare extreme cold wallet (Lido DAO agent through gov. feature):
    • Assign governance_admin
    • Assign upgrade_governor
    • Assign app_role_admin
  • upgrade_governor - StarkWare cold wallet (Lido DAO agent through gov. feature):
    • Can upgrade the bridge contract on L1.
  • app_role_admin - StarkWare cold wallet (Lido DAO agent through gov. feature):
    • Assign app_governor
    • Assign token_admin

Source code and Documentation

  • Source code repo for StarkGate (Live on Mainnet).
  • Source code repo for StarkGate 2.0 (Live on Goerli).
  • StarkGate Documentation.
5 Likes
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Absolutely needed, and a huge step forward in terms of marking Starknet getting closer to its full launch as well as inspiring confidence that it will be a legitimate venue for scaling ethereum-based defi further than any other project before.

1 Like
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I’d be really happy to see this, and the timing for this proposal makes a lot of sense as Starknet currently is lacking options in terms of ETH staking.

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Hey, @Natan_SW

Absolutely amazing proposal given the StarkWare experience and proven track record in ZK-STARKs pioneering and adoption.

I am particularly in love with StarkWare x Herodotus collab to make storage proofs available across ecosystem paving the way for more robust bridging and DeFi opportunities.

With regards the proposal presented, would love to be in touch for connecting the dots with technical and security stuff counseling and advising, including a possible governance forwarder implementation.

As for me, having those is highly desirable to run a transparent Snapshot vote given the long-term opportunities and ecosystem maturity.

2 Likes
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Hey @TheDZhon , thanks for your warm comment! I’m Ohad from the StarkWare team and I work closely with Natan. We are now in initial phases of designing the governance forwarder, and we think designing it with maximal collaboration and transperancy is essential for moving toward a vote and build trust between our ecosystems.

Therefore I’d love to discuss with you the governance forwarder design, as well as any other concern you have, around the proposed way to integrate wstETH to Starknet.

If anyone else would like to discuss it LMK! I’m @OhadStarkWare on TG.

3 Likes
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wstETH Proposal update

We are thrilled to announce the successful completion of the cross-governance solution for wstETH on Starknet. This milestone has been made possible through dedicated efforts from the Nimbora team by SpaceShard and strong backing from StarkWare.

As we move forward, we encourage the Lido community to engage in discussions and provide feedback on this development.

The Starknet Foundation has also separately committed to assigning Defi Spring rewards to wstEth in order to incentivise wstEth holders to bridge and deploy their wstEth on Starknet.

Below is the updated information regarding audits, mainnet and testnet contracts, and source code repositories.

Audits

Mainnet Contracts - StarkGate 2.0

Testnet (Sepolia) Contracts - StarkGate 2.0

Source code and Documentation

  • Source code repo for StarkGate 2.0 (Live on Mainnet).
  • Source code repo for the Lido - Starknet governance forwarder.
  • StarkGate Documentation.
3 Likes
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GM, thank you for updating the proposal, excited about the prospect of having wstETH recognized within the Starknet ecosystem.

To facilitate the upcoming snapshot vote, the Network Expansion Workgroup has engaged the well-known Nethermind Security team, who are deeply familiar with Starknet, to conduct a thorough review of the deployment artifacts and overall solution setup. Their insights might provide valuable information to help DAO token holders make a more informed decision.

Once the deployment verification report is finalized and any necessary adjustments are made, the report will be shared in this thread.

2 Likes
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wstETH Proposal update

Hey everyone, I’m Shani from the StarkWare team, and I recently took over StarkGate, replacing Natan.

Below you can find the updated information regarding audits (including a recent audit report), mainnet and testnet contracts, and source code repositories.

Audits

Mainnet Contracts - StarkGate 2.0

Testnet (Sepolia) Contracts - StarkGate 2.0

Source code and Documentation

  • Source code repo for StarkGate 2.0 (Live on Mainnet).
  • Source code repo for the Lido - Starknet governance forwarder.
  • StarkGate Documentation .
4 Likes
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Hey, @Shani_Rozenzweig!

Thank you for continuing the thread. It’s good to see that the up-to-date audit allowed to reveal and resolve quite a severe finding in the previously deployed version.

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I see that the L1 bridge proxy was upgraded to the following impl deployed 26 days ago and marked as ‘StarkWare_StarknetERC20Bridge_2.0_5’ as in the fix commit.

Nevertheless, as said earlier, to proceed, the Network Expansion Workgroup suggests waiting for the final deployment verification report from Nethermind Security to provide an outlook on the deployment artifacts’ state and overall setup.

Please stay tuned.

1 Like