wstETH Deployment to Zircuit and Ownership Acceptance by Lido DAO

Introduction

Zircuit proposes the deployment of wstETH (Wrapped liquid staked Ether 2.0) onto Zircuit L2, with the ultimate goal of acceptance of ownership of the wstETH bridging components by the Lido DAO.

About Zircuit

Zircuit is an Ethereum Virtual Machine (EVM)-compatible Zero-Knowledge Layer 2 rollup launching on the Ethereum network. Apart from offering much lower network fees and higher transaction throughput than Ethereum mainnet, Zircuit’s main focus is security. Zircuit prevents malicious transactions and hacks by utilizing its novel AI-enabled feature: Sequencer Level Security (SLS). We envision Zircuit as a central hub for restaked assets that features unparalleled security and allows users to earn industry-leading yields natively.

wstETH Demand

Zircuit is working with a multitude of DeFi projects to build a robust and secure ecosystem. Zircuit has not yet migrated funds from the Ethereum Mainnet onto Zircuit L2, but currently (September 2024), there is $1.8B in the Zircuit staking contract (see DefiLlama), of which about $120M is in wstETH. This number alone suggests that wstETH will play a key role in the Zircuit L2 ecosystem.

Canonical Bridge for wstETH

We propose to bridge wstETH onto Zircuit through the canonical bridge. We have used the contracts and scripts from the original Optimism deployment lido-l2, since Zircuit is fully compatible with Optimism Bedrock contracts. Furthermore, we also deployed the Optimism’s Bridge Executor from governance-crosschain-bridges, which enables Lido DAO to manage the bridge and the token on L2. Thus, we propose that the Lido DAO formally accepts ownership of the wstETH bridging components via a signaling snapshot vote.

Audits

Links

Deployment and Levers Setup

Testnet

Bridge UI: https://bridge.testnet.zircuit.com/

Explorer: https://explorer.testnet.zircuit.com/

Contracts

Ethereum Sepolia

Zircuit Testnet

Levers Setup

  • OptimismBridgeExecutor
  • Ultimate admin and role holder on L1 is the Lido DAO Agent: 0x32A0E5828B62AAb932362a4816ae03b860b65e83
    • Proxy admin for L1ERC20TokenBridge
    • DEFAULT_ADMIN_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_ENABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_ENABLER_ROLE for L1ERC20TokenBridge
  • Ultimate admin and role holder on L2 is the OptimismBridgeExecutor: 0x989CD486c02bfBe5c2D3C157cDCab099134e7697
    • Proxies admin for ERC20Bridged, 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
  • Lido Emergency brakes multisig on L1: 0xa5F1d7D49F581136Cf6e58B32cBE9a2039C48bA1
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
  • Lido Emergency brakes multisig (placeholder) on L2: 0xa5F1d7D49F581136Cf6e58B32cBE9a2039C48bA1
    • WITHDRAWALS_DISABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L2ERC20TokenBridge

Mainnet

Bridge UI: https://bridge.zircuit.com/

Explorer: https://explorer.zircuit.com/

Contracts

Ethereum

Zircuit

Levers Setup

  • OptimismBridgeExecutor
  • Ultimate admin and role holder on L1 is the Lido DAO Agent: 0x3e40D73EB977Dc6a537aF587D48316feE66E9C8c
    • Proxy admin for L1ERC20TokenBridge
    • DEFAULT_ADMIN_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • WITHDRAWALS_ENABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_ENABLER_ROLE for L1ERC20TokenBridge
  • Ultimate admin and role holder on L2 is the OptimismBridgeExecutor: 0x6Bf2cac3ed2481da30aD36Cd3D64325c31065Cc5
    • Proxies admin for ERC20Bridged, 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
  • Lido Emergency brakes multisig on L1: 0x73b047fe6337183A454c5217241D780a932777bD
    • WITHDRAWALS_DISABLER_ROLE for L1ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L1ERC20TokenBridge
  • Lido Emergency brakes multisig on L2: 0x9Bff79BF7226cB5C16d0Cca9c1dc60450feE560d
    • WITHDRAWALS_DISABLER_ROLE for L2ERC20TokenBridge
    • DEPOSITS_DISABLER_ROLE for L2ERC20TokenBridge
5 Likes

GM, thank you for posting the proposal!

The deployment looks good to me and double-checked the params using state-mate, here is the config: state-mate/configs/zircuit/mainnet.yml at main · lidofinance/state-mate · GitHub

The audit mentioned is re-uploaded to the GH for the sake of further availability: audits/L2/Zircuit_2024-10-02-Quantstamp-wstETH-deployment-verification.pdf at main · lidofinance/audits · GitHub

On an important note, there were some improvements suggested from the Lido contributors for the official bridge UI to make it available for smart contract wallets and refine user experience a bit.


Looking forward to make Zircuit network a new opportunity for stETH enjoyers :star_struck:

4 Likes

Snapshot vote started

Please get your wallets ready to cast a vote :white_check_mark:, the Should the Lido DAO recognize the wstETH bridge endpoints on Zircuit as canonical? Snapshot has started! The Snapshots ends on Thu, 24 Oct 2024 16:00:00 GMT.

Thanks for publishing it! I vote to recognize the wstETH bridging endpoints for Zircuit. If it’s passed, it will allow users to securely transfer wstETH between Ethereum and Zircuit, boosting liquidity and making wstETH more useful on a secure Layer 2 network like Zircuit.

4 Likes

Snapshot vote ended

The Should the Lido DAO recognize the wstETH bridge endpoints on Zircuit as canonical? Snapshot vote concluded!
The results are:
Recognize: 61.1M LDO
Don’t recognize: 1.5k LDO