Dual Governance: design and path towards implementation

Description

What is Dual Governance

The Dual Governance mechanism (DG) is an iteration on the protocol governance that gives StETH holders 1) a dynamic user-extensible timelock on DAO decisions and 2) a rage quit mechanism taking into account the specifics of how Ethereum withdrawals work.

The proposal

Dual Governance research team is seeking a sentiment check of the Dual Governance design from the Lido DAO. If the proposal is passed, the team will move forward with a technical implementation. To prepare the project to the release, plan is to start collaborating with external research- and security-focused teams to make sure 1) the design, 2) the implementation and 3) the parameters are sound and ready for the mainnet deployment. The third-party engagements have been budgeted under [EGG] st2024 v1

Current status

After multiple stages of the research (the latest update, the start of the “continuation” thread, the initial post), the mechanism design is now fully fleshed out. The mechanism design is outlined on GitHub, as is the the technical architecture and the code draft. Contributors have started spec review projects with Certora and Runtimeverification teams.

External teams involvement

The project involves a number of external teams challenging the design, code and parameter choices. The current plan includes working on the specification and code-level checks and audits with Certora, Runtimeverification, OpenZeppelin, Statemind, and engaging Collectif Labs research team for parameters research collaboration (developers behind the https://collectif.finance/).

Approximate timeline

The approximate timeline targets a testnet deployment around Q3, with potential mainnet launch in late Q3 / Q4. Note that the timelines are approximate at the moment and are subject to change depending upon the security checks and the testnet results.

Signal your support

The Dual Governance mechanism is targeted to make Lido on Ethereum a better liquid staking protocol. Make sure to raise any questions on forum and — if that’s the case — signal your support for the project.