Lido Monthly Report: November 2023

Welcome to the November 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 the Lido protocols.

TL/DR:

• Lido TVL surpassed $20b for the first time since April 2022.
• Lido passed 200,000 first-time ETH stakers.
• stETH, including wstETH, observed a notable surge in DeFi ecosystems, growing 10.34% to 3.52m stETH.
• Successful Snapshot votes approved proposals related to wstETH bridge components, GOOSE goals, and the Simple DVT staking module.
• Node Operator Community Call #12 covered topics like the Community Staking Module and the DUCK initiative.
• Hashkey Exchange listed LDO, and wstETH integrated into Aave V3 on Base.
• Lido DAO published its LEGO Report for Q3 2023, alongside ongoing development and educational efforts for the Community Staking Module.

Protocol Performance

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

Additional Notes

• With an increase in net ETH deposits and a surge in the price of ETH, TVL experienced a notable upswing of over 18%.
• Following the DAO governance vote to sunset the Lido on Solana protocol, there has been a continued increase in withdrawal requests for staked SOL.
• The Lido protocol achieved a significant milestone as the number of first-time ETH stakers surpassed the 200,000 mark.
• Even with a decrease in liquidity incentives, the strategic allocation of these incentives by the Liquidity Observation Lab has led to a notable 10.34% increase in stETH across DeFi applications.

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 November.

Additional Notes

• It is important to note that these metrics also include wstETH - the wrapped, non-rebasing version of stETH.
• stETH witnessed a significant increase within DeFi ecosystems, driven primarily by the upswing in the liquid sttaking token across various lending protocols.
• Along with its deployment on Base, wstETH saw a surge across L2s. Notably, Arbitrum led the way with an impressive 18.57% increase in wstETH on its network.
  

Governance

In this section, you will find notable proposals that have arisen from the Research Forum, along with their advancements through the voting processes on Snapshot and Aragon.

Snapshot

Among the various Research Forum proposals considered and deliberated upon during the past month, four proposals were subjected to Snapshot votes this month.

1. wstETH Bridge Components on zkSync Era: details

This proposal recommended that Lido DAO takes ownership of the wstETH bridging components on zkSync Era, including upgrade authority and emergency pausability, as deployed by Matter Labs and TxFusion.

Proposal Outcome: Successful ✅

2. wstETH Bridge Components on Base: details

Similar to the previous proposal, this proposal recommended that Lido DAO takes ownership of the wstETH bridging components on Base, as deployed by the Beefy team.

Proposal Outcome: Successful ✅

3. GOOSE Goals - Lido DAO: details

This proposal advocated for the adoption of Hasu's comprehensive set of goals for Lido DAO, covering both three-year and one-year objectives.

Proposal Outcome: Successful ✅

4. Simple DVT - Staking Module - Lido DAO: details

This proposal sought the approval of the Lido DAO for the deployment of the Simple DVT module on the Staking Router, utilizing Distributed Validator Technology (DVT) through Obol Network and SSV Network implementations.

Proposal Outcome: Successful ✅

Aragon: Omnibus Votes

Following the successful Snapshot votes, a selection of these proposals were consolidated into one Omni-Vote within Aragon's 2-Phase voting process:

1. Vote #167 : details

This on-chain vote primarily included:

• The transfer of stETH to the Lido Contributors Group multisigs (RCC, PML, and ATC), as previously requested on the forum.
• The changing of Node Operator's (#id - 27) name, from “Prysmatic Labs” to “Prysm Team at Offchain Labs”.

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 our expanding community.

NOCC Call #12

The latest Node Operator Community Call covered several important topics:

• Lido DAO contributor Dmitry Chernukhin presented the Community Staking Module (CSM), elaborating on its principles and simplifying its rather intricate design.
• Lionscraft presented the recently proposed DUCK initiative. Unrelated to the feathery bird, the Distributed Utilization of Configurations and Knowledge initiative is set to equip Lido protocol node operators and beyond with open-source resources, enhancing operations and mitigating risks in running staking infrastructure.
• Lido DAO contributor Sven Brekelmans announced that Q3 Validator and Node Operator Metrics (VaNOM) were live and available for both Lido on Ethereum and Lido on Polygon.
• Dominic from ETH Zurich provided a comprehensive measurement study on the current state of the Ethereum Proof-of-Stake Consensus Layer on the Beacon Chain.

For more details, see below for the full call:

Collaborations

In this section, you will find all the collaborations that have been established in the past month, as leading companies and protocols integrated with the Lido protocols, further expanding the reach and impact of its liquid staking tokens.

Integrations

• The Lido DAO incentives program on Lybra Finance prompted successful increases in wstETH deposits, Lybra TVL and peUSD circulation.
• Hashkey Exchange, a leading Hong Kong exchange, officially listed LDO on its platform.
• With the Lido protocol officially live on Base, users can now bridge wstETH to the prominent L2.
• DeFi DEX Solidly V3 has officially listed wstETH.
• Argent Mobile has successfully integrated with the Lido protocol in order to offer ETH staking for its Starknet accounts.
• Following the support on Base,  a successful vote has paved the way for the integration of wstETH into Aave V3 on the Base network.

Extra

• Lido DAO published its LEGO Report for Q3 2023.

• With Lido DAO contributors actively working on a Community Staking Module (CSM) for the Staking Router, this thread provides a great roundup on its proposed designs and upcoming developments.

• LidoConnect in Turkey achieved resounding success, featuring a diverse range of speakers who delivered engaging speeches on various topics.

• With the recent Snapshot approval of the Simple DVT module, this thread offers an insightful overview of what the upcoming staking module is poised to include.

• In this first episode of the Lido Community Staking Education series, Lido DAO contributor Dmitry Gusakov provides a simple overview on the underlying principles of Ethereum validation.

Looking Ahead - December 2023

• Anticipate exciting developments in governance with several Snapshot votes scheduled for this month, including the approval of the Community Staking Module (CSM) design, and the launch of wstETH on zkSync, Mantle and Linea.
• The Node Operator Community Call #13 tentatively scheduled for December 19th.
• Get ready to celebrate a significant milestone as Lido DAO marks its third anniversary since the protocol went live on December 19, 2020.

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.

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