Dual Governance is now part of the standard governance process at Lido DAO, giving stakers an explicit voice and the right to safely exit in the face of contentious proposals.
1/ [Update on Lido Earn vaults and the ongoing Kelp incident] Lido Earn contributors are working with the vault curators (Veda and Mellow) to resolve two distinct issues arising from the Kelp incident: direct exposure to rsETH, and an ongoing liquidity crunch on lending markets.
The Lido staking protocol is not involved in either issue. stETH and wstETH are not affected.
2/ Which Lido Earn vaults have exposure to rsETH?
Only Lido EarnETH has rsETH exposure, at ~9% of the vault’s TVL. EarnETH vault deposits and withdrawal processing are currently paused by the vault curator while the resolution process is finalized. The Arbitrum Security Council recovered ~$70 million in ETH resulting from the attack. Other remediations are in process. Public updates on asset recovery and loss allocation are still developing.
3/ EarnETH has exposure to other assets and looping strategies that are independent of rsETH. The vault curator has been working to deleverage positions that are affected by elevated borrowing rates on lending markets and optimising the vault holdings. Fast reaction puts the EarnETH vault in a favorable position with a major reduction in wETH debt positions. Progress will be communicated soon.
• Pooled liquid staking: easy to use, great liquidity and DeFi utility, but limited customization
• Bespoke staking: control and policies, but illiquidity and operationally complex
stVaults resolve this dilemma.
Teams can customize what matters - operator selection, policies, fees, reward logic, risk parameters - while preserving access to a shared liquidity layer via stETH.
It’s been just under 3 months since CSM went live.
Since then, contributors have worked with Node Operators to uncover how they interact with the interface, pinpoint pain points & map out areas for improvement.
Let’s see what’s changed 👇
1️⃣ Validator Key Statuses
The Keys Dashboard got a major upgrade to make life easier for CSM Node Operators.
Quickly spot any issues with your keys and see exactly what actions you need to take to resolve them 🔑
2️⃣ Detailed Key Explanations
Beyond the Keys Dashboard upgrade, the ‘VIEW KEYS’ sub-tab now provides detailed breakdowns of key statuses and clear guidance on the next steps.
Users can now bridge their wstETH tokens to Starknet and access the network's growing DeFi ecosystem, all while benefiting from L2’s lower gas costs and faster transactions.
👇
Why bridge to Starknet?
• Lower fees and faster transactions through ZK-Rollup technology.
• Access to Starknet's growing DeFi ecosystem.
• Same security as Ethereum through validity proofs.
What is Starknet?
Layer 2 ZK-Rollup for Ethereum, powered by the STARK proof system. Using STARK proofs, it processes transactions with reduced costs while benefiting from Ethereum's security.
The Lido V3 market on @aave has been live for 48 hours and just surpassed $200m in market size 👻
Here's what you need to know 👇
What is it?
The Lido V3 market is the first custom Aave V3 instance, specifically tailored for stETH & wstETH.
The market optimises ETH borrowing dynamics by tuning collateralisation and interest rate parameters in an isolated market.
Why is it important?
stETH is the largest collateral source on Aave representing ~30% of the Ethereum V3 market.
With this new market, collateralisation and interest rate parameters can be fine-tuned to optimise borrowing rates and maximise profitability for Aave users.
Introducing Early Adoption for the Community Staking Module 🌐
This initiative will allow a set of independent operators to join CSM on mainnet prior to CSM opening to all, avoiding possible crowding out of capacity by large operators from Day 1.
Apart from early access, eligible operators benefit from a special bond curve featuring a discounted bond amount for their first validator, further lowering the entry barrier.
To foster the inclusion of as many independent operators as possible, the Early Adoption eligibility criteria will draw candidates from the following six sources:
1. Solo-stakers curated by @ratedw3b 2. Solo-stakers curated by @Stake_Cat 3. @ObolNetwork Techne credential holders 4. Simple-DVT testnet community stakers 5. Performant CSM testnet participants 6. Lido community members with @Galxe OATs