Lido Monthly Report: April 2024

in Reports by Lido

Welcome to the April edition of the Lido Monthly Report, a comprehensive source for insights into all of the latest developments.

 

This report reviews another month of noteworthy metrics, new collaborations, and ongoing developments that highlight the overall performance and progress of Lido.

 

TLDR:

  • Despite a decrease in Total Value Locked (TVL) caused by lower ETH prices and deposits, the Lido middleware had 14,075 new stakers during the month.
  • Total stETH on DeFi dApps declined, however there were over 24,000 new stETH holders.
  • Wrapped stETH (wstETH) on Layer 2 networks held relatively steady despite lower LP incentives.
  • Lido DAO passed Snapshot proposals to renew a security feature (GateSeal) and approve a path towards a new governance system (Dual Governance).
  • Community calls covered updates on the Simple DVT staking module and a new method for transferring ETH deposits between the execution and consensus layers (EIP 6110).
  • DAOs and multisigs can now stake ETH directly through the Lido middleaware using Aragon's dApp Connect feature.

 

Lido Performance

In this section, you will find key metrics that offer valuable insights into the overall performance of the Lido middleware over the month of April.

 

 

  • The notable decline in Total Value Locked (TVL) on Lido can be mainly attributed to two factors: a significant drop in the price of ETH and a slight reduction in ETH deposits.
  • In the course of the month, a total of 14,075 new ETH stakers chose to utilise Lido for the first time.
  • In April, the incentives for liquidity providers (LPs) saw a significant decrease of -73.57%.

 

stETH Performance

In this section, you will find key metrics that offer valuable insights into the overall performance of the Lido's Ethereum staking token over the month of April.

 

 

  • It is important to note that these metrics also include wstETH - the wrapped, non-rebasing version of stETH.
  • While there was an overall decrease in stETH across DeFi applications, April experienced a notable increase of over 24,000 new stETH holders.
  • Despite a significant reduction in LP incentives, wstETH on Layer 2 networks only decreased by 4.05%.

 

Governance

In this section, notable proposals from the Research Forum and their progress through the voting processes on Snapshot and Aragon are presented.

 

Snapshot

Among the various Research Forum proposals considered and deliberated upon during the past month, two proposals were subjected to Snapshot votes:

 

  1. Renew GateSeal for Withdrawal Queue & Validator Exit Bus Oracle: details

This proposal advocated renewing the GateSeal mechanism for the Withdrawal Queue and Validator Exit Bus Oracle within Lido on Ethereum, extending its functionality until April 1, 2025, to provide a 6-day pause window for addressing protocol vulnerabilities.

Proposal Outcome: Successful ✅

 

2. Dual Governance: Design & Path Towards Implementation: details

This proposal introduced a new governance system called Dual Governance for Lido on Ethereum. It grants stETH holders more control over protocol changes and a way to exit if they disagree with future decisions.

Proposal Outcome: Successful ✅

 

Aragon: Omnibus Votes

Following every Snapshot vote, such proposals are consolidated into a final Omni-Vote within Aragon's 2-Phase voting process:

 

  1. Vote #174 : details

This Aragon vote included the successful Snapshot proposal set to renew the GateSeal for both the withdrawal queue and the validator exit bus oracle. This critical security feature, previously set to expire on May 1, 2024, will now be active until April 1, 2025.

Proposal Outcome: Successful ✅

 

Community

In this section, you will find recaps of vital community gatherings, with a particular emphasis on the Node Operator Community Calls. These recaps serve to capture and share insights from these gatherings, fostering active engagement and meaningful discussions within this expanding community.

 

NOCC Call #16

The latest Node Operator Community Call covered several important topics:

  • Lido DAO contributor Will shared an update on the Simple DVT module. The update detailed the activation of the module on mainnet with an initial deployment of 60 validators distributed across 5 clusters. Additionally, Will mentioned the successful completion of SSV testnets, which will serve as a stepping stone for adding more validators to the module in the near future.
  • Researcher Emmanuel Awosika gave a presentation on EIP 6110, a new method for transferring deposits between the Ethereum execution and consensus layers. The current system has existing issues and EIP 6110 proposes solving them by including deposits directly on-chain. This would speed up deposit processing and eliminate the need for data voting, however it may also introduce potential challenges like denial-of-service attacks.
  • Scale3 contributor Jay introduced Autopilot, their web3 infrastructure platform facilitating the secure deployment and management of blockchain nodes and validators. Supporting 40 different blockchain networks, it offers features like metrics dashboards, log streaming, and customizable alerts, with plans to integrate advanced features such as AI-driven log monitoring.

 

For more details, see below for the full call:

 

Blogs

  • Lido DAO contributors have proposed a dual governance system where stETH holders have a say in protocol changes. Following the successful Snapshot proposal, this system is targeted to launch on the testnet in Q3 and mainnet by Q4.

 

  • Following the third successful Lido x SSV Simple DVT testnet, a proposal to onboard selected participants to the Lido Simple DVT module is expected in the coming weeks.

 

Additional

  • The dominance of the supermajority Execution Layer client (Geth) among Ethereum validators on Lido has continuously dropped from 93% to 46% since 2022.

 

  • The Lido Ecosystem Grants Organization (LEGO) released its Q1 2024 report, detailing grants that span from research initiatives to bug bounties.

 

  • The updated Lido withdrawal widget now offers precise estimates for completion times, aiding in decisions between withdrawing via Lido or instant swapping with supported DEX aggregators.

 

  • DAOs and multisigs can now stake their ETH directly through the Lido middleware using Aragon's new dApp Connect feature.

Stay Connected

To conclude, another chapter is brought to a close in the Lido Monthly Report.

 

To remain continuously updated, be sure to subscribe to receive all upcoming reports. Furthermore, to stay connected with the growing community, follow Lido DAO through the various channels provided below.

 

Resources

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