Lido Finance Introduces Four New Initiatives, Encouraging Votes Until June 6
In Brief
Lido Finance has rolled out four innovative proposals on the Snapshot platform, inviting users to cast their votes until 15:00 UTC on June 6.
This liquid staking solution caters to Proof-of-Stake (PoS) cryptocurrencies. Lido Finance (LDO) initiated a new voting round on the Snapshot platform. Users are encouraged to engage in voting for four new proposals, which include the Lido Alliance: Drop, Lido Alliance: Mellow Finance, Expansion of Simple DVT Module, and a Negative Rebase Sanity Check with an option for a second opinion. Voting for all proposals will be open until 15:00 UTC on June 6.
The Lido Alliance: Drop initiative aims to gather support for incorporating the cross-chain liquid staking protocol, Drop, into the Lido Alliance framework. Once integrated, Drop will facilitate Ethereum compatibility and decentralized validation, creating opportunities for stETH adoption and validator onboarding while adhering to stringent industry security standards. Additionally, 100 million DROP tokens will be allocated to the Lido Alliance legal entity post-Token Generation Event (TGE).
Another initiative proposes the incorporation of Mellow Finance, a platform that allows for the creation of permissionless liquid restaking tokens (LRTs) based on distinct risk profiles and curation strategies, into the Lido Alliance. This integration is expected to enhance the Lido ecosystem and benefit stakers, making stETH an ideal solution for delegating to operators and various Automated Validation Services (AVSes). Furthermore, this step could significantly enhance stETH liquidity, establishing it as a central vehicle for onboarding to Mellow’s LRT. LST 4⃣ Negative rebase sanity check with an option for a second opinion
Moreover, the Lido Alliance has put forth a proposal to expand the Simple DVT Module. This initiative includes two pivotal actions: one is to allow the formation of larger validator clusters which would yield greater rewards for the DAO than standard Simple DVT clusters; the other is to raise the module's maximum share limit from 0.5% to 4%. Following approval, steps to implement these on-chain actions will be addressed in future votes.
The ecosystem is widely recognized for its user-friendly staking processes in the cryptocurrency sphere, offering unmatched accessibility, liquidity, and security features for those involved in Ethereum staking.
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 Drop: a cutting-edge cross-chain liquid staking protocol.
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