Lido Finance Unveils 4 New Proposals, Urges Users To Vote Until June 6
In Brief
Lido Finance unveiled four new proposals on the Snapshot platform, encouraging community voting until 15:00 UTC on June 6.
Liquid staking solution for Proof-of-Stake (PoS) cryptocurrencies, Lido Finance (LDO), unveiled a new voting event on the Snapshot platform. Users are encouraged to participate in voting on four new proposals, namely Lido Alliance: Drop, Lido Alliance: Mellow Finance, Expanding the Simple DVT Module, and Negative Rebase Sanity Check with Pluggable Second Opinion. All four voting events will remain active until 15:00 UTC on June 6th.
The Lido Alliance: Drop proposal seeks to accumulate votes for integrating the cross-chain liquid staking protocol, Drop, into the Lido Alliance. Once onboarded, Drop will offer Ethereum alignment or decentralized validation, use cases for stETH adoption, the option to apply to Drop’s validator onboarding, adherence to high industry security standards, and allocation of 100 million DROP tokens to the Lido Alliance legal entity after the Token Generation Event (TGE).
Another proposal suggests integrating Mellow Finance, a protocol enabling permissionless liquid restaking token (LRT) creation based on unique risk profiles and curation models, into the Lido Alliance. This new integration with Mellow Finance is poised to benefit the entire Lido ecosystem and stakers, offering stETH as a comprehensive solution for delegation to operators and various AVSes. The integration could potentially boost stETH liquidity and position it as a key LST vehicle for onboarding to Mellow LRT.
Lido Alliance Proposes Expansion Of Simple DVT Module and Enhanced Protocol Security Measures
Furthermore, the Lido Alliance has proposed expanding the Simple DVT Module. This vote encompasses two main steps: enabling the creation of larger clusters in terms of the number of operated validators, which would yield a higher reward share to the DAO compared to normal Simple DVT clusters, and increasing the maximum share limit of the module to 4% from the current 0.5%. On-chain actions to raise the limit will be implemented during a subsequent on-chain vote, contingent upon its approval.
Lastly, the Lido Alliance has put forward a proposal aimed at enhancing protocol security by mitigating potential malicious negative rebase manipulations. The proposal suggests modifying the existing AccountingOracle sanity check, which presently restricted reporting more than a 5% decrease in the Consensus layer validator balance and withdrawal vault balance daily. The proposed adjustment would implement a sanity check limiting reductions to approximately ~3.4% over an 18-day window, equivalent to a decrease of 1.101 ETH per validator within the specified timeframe. Should the DAO grant approval, the proposed new sanity checks will be incorporated into a subsequent on-chain vote for implementation within the Lido protocol.
Lido Finance operates within the Ethereum ecosystem, renowned for its user-friendly approach to cryptocurrency staking. It provides distinctive accessibility, liquidity, and security features for participants engaged in Ethereum staking activities.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
