Lido’s Plan For ETH Staking Withdrawals

Friday, January 27, 2023

Quick Take

  • Lido proposes a plan for staking withdrawals.
  • Aave V3 is now live on Ethereum.
  • OpenZepplin completes additional zkSync 2.0 audits.
  • Dove Protocol unveils its cross-chain AMM.

Lido’s Plan For Staking Withdrawals

Lido Finance, the largest staking entity on Ethereum, proposed a plan for processing staking withdrawals. Lido plans to have a request-to-claim process for stETH redemptions. The process would require stETH holders to submit a withdrawal request, wait for the protocol to fulfill the request, and then claim the ether once the request is finalized.

The amount of time before a request is finalized will vary from 1 hour up to several days based on validator-slashing conditions. The withdrawals feature will operate in two modes coined “Turbo” and “Bunker.” Turbo Mode processes stETH withdrawal requests as fast as possible while Bunker Mode introduces an extra withdrawal delay.

Bunker mode is designed to activate during a mass slashing event and will only finalize a withdrawal request until all associated slashings are completed. Lido also plans to use ether from its deposit buffer and rewards vaults to fulfill withdrawal requests as quickly as possible. The proposal is currently open for community feedback.

Aave V3 Now Live On Ethereum Market

Aave V3 is now live on the Ethereum mainnet market. The upgrade presents risk mitigation features, improved capital efficiency, and reduces gas costs by up to 25%. It also introduces Isolation Mode, which allows new assets to be supplied in isolation with a specific debt ceiling. Currently, only stablecoins can be borrowed in isolation mode.

Aave V3 also features High-Efficiency Mode, or E-Mode, which allows users to obtain a more favorable LTV ratio when supplying and borrowing correlated assets. For example, supplying Liquid Staking Derivatives (LSDs) allows users to borrow up to 94% of their collateral. Users can also move their positions across any V3 market.

OpenZepplin Completes zkSync 2.0 Audits

OpenZepplin completed additional audits for zkSync 2.0. The first audit covered the zkSync Bootloader contract, an account abstraction contract used for executing bundles of transactions. A total of 29 issues were found, of which 25 have been fixed by Matter Labs. The second audit covered new changes to the L1 contracts for zkSync 2.0.

The second audit found one critical severity issue related to storage collision, which is now resolved. The new round of audits comes as zkSync prepares for a gated launch in Q1 2023. A select group of ecosystem projects will be able to deploy their dapps on zkSync 2.0 mainnet, an upgrade to the network that introduces EVM compatibility.

Dove Protocol Cross-Chain AMM

Dove Protocol unveiled its cross-chain AMM, which provides multiple chains with access to the same liquidity sourced from L1. Since it only uses a single liquidity source, the cross-chain AMM provides more competitive asset prices across chains. Currently, individual AMMs deployed on each L2 network causes liquidity fragmentation.

The cross-chain AMM also provides exposure to volume across chains, resulting in increased trading fee revenue for LPs. Dove Protocol builds upon existing designs of constant function market makers (CFMMs) as well as distributed AMMs (dAMMs) pioneered by StarkWare. Dove Protocol is currently working to launch its initial iteration.

Vest Perpetual DEX On Arbitrum

Vest unveiled plans to launch a perpetual futures DEX on Arbitrum. Coined as Vest Exchange, the platform will offer access to illiquid and long-tail assets. Vest also plans to design a risk engine that fairly addresses LP and asset risks. Vest is initially launching a private testnet that is open to whitelisted users.