What You Need to Know About Lido V2
Eclipse: Solana Rollup on EVM Chains? | Metavault Trade: GMX Fork Optimized for UX
GM, this is your Daily Bolt briefing.
In this edition, we’ll be giving you our full notes report on Lido’s twitter space yesterday, where the team discussed everything around Lido V2, from how stETH withdrawals will be handled, to new security features, and more.
Speaking of Lido V2; in light of the significant update, we’ve decided to make our Project Breakdown on Lido available for anyone to view; you don’t even need an account!
Click here to view the full breakdown report: over 100 pages of in-depth research, everything you need to know about the #1 ETH staking service.
In this addition we’ve also included abridged briefings on two exciting DeFi developments:
Eclipse, a SVM (Solana Virtual Machine) rollup that can bring the benefits and scalability of Solana to other blockchains including Polygon, NEAR, and Injective.
Metavault Trade, a friendly fork of GMX aiming to provide the best trading UX by integrating TradingView, other currencies to settle trades in, aggregating other DEXs for better trade prices, and more.
Stay vigilant.⬇️
aiPX is the official sponsor of the Daily Bolt by Revelo Intel
In a post-FTX world, securely trading with leverage and earning real yield in a decentralized manner has never been more important.
aiPX offers cutting-edge risk management for liquidity providers, leverage trading, and a suite of products between perpetuals, binary options, and synthetics.
Earn passive yield and trade with leverage straight from your wallet.
Take the step, join aiPX.
1/ Eclipse Rollups Powered by Solana's Virtual Machines with Neel Somani
Preview: In this episode of the 0xResearch, Host Dan Smith and Sam Martin are joined by Neel Somani to discuss how Eclipse enables rollups powered by Solana's parallelizable virtual machine! Click here to listen to the full episode (71 mins).
Read our Note (16 mins) and save 55 mins.
Here are some key takeaways:
Eclipse Builders is a platform designed to enable scalable blockchain development by utilizing rollups powered by Solana’s parallelizable virtual machine.
Neel explains that solutions like Polygon PoS and BSC were initially successful due to timing and lack of alternatives to the $ETH Layer-1 for those with EVM-compatible code.
Neel mentions other solutions such as Solana and the rollup-centric roadmap like Arbitrum and Optimism, which aim to solve limited blockspace and high gas fees.
Neel suggests that the value of the Cosmos Layer-1 is not necessarily about lower gas fees, but more about the customizability that having an app chain provides.
He explains that Eclipse allows users to pick and choose desired core properties, such as low fees and being part of the Ethereum or Cosmos ecosystem, by dividing these different concepts or properties of a blockchain into modules.
Neel explains that Eclipse takes three main concepts of a blockchain – executing transactions, establishing the ordering of transactions, and verifying that those state transitions were executed correctly – and separates them cleanly.
He mentions that with Eclipse, users can deploy a customized execution chain, pick their consensus and data availability layer (DA Layer), and build additional customizations on top of the execution layer to facilitate whatever kind of application they’re building.
Neel mentions that SVM (Solana Virtual Machine) also allows them to extend its benefits to other ecosystems like Injective, Polygon, and Near, facilitating easier entry for Solana projects into these ecosystems.
Neel confirms that in the future, the Eclipse chains are expected to implement zero-knowledge proof of concepts using a Berkeley packet filter (BPF) bytecode interpreter. He mentions that the Solana VM which Eclipse uses doesn’t have a BPF bytecode interpreter, instead, they used an existing library called Solana RBPF which outputs RISC-V bytecode. This system incorporates some memory packaging and utilizes RISC-Zero, a zero-knowledge RISC 5 VM, to handle the ZK settlement.
2/ Blocmates - Sami Explains Dinero, $pxETH & The Redacted Relayer
Preview: In this episode of blocmates, Jedi invites Steve from Metavault DAO to discuss the Metavault Trade, $MVX, and $MVD tokens, 0xbeets, why they built on Polygon and why they are leaving for Arbitrum and zkSync. Click here to watch the full episode (55 mins).
Read our Note (8 mins) and save 47 mins.
Here are some key takeaways:
Steve explains that Metavault Trade is a friendly fork of GMX. He says that he is an early investor in GMX, so he knows the team and community.
He states that Metavault Trade integrated TradingView charts into the platform so that users can have a better trading experience.
He says that they provide users better trade execution mechanism since users can choose the currency in which they want their balance to be paid out when their position is closed.
He believes that Metavault Trade provides a better user experience than GMX overall.
Steve explains that their team understands that improving the GMX model is difficult due to outdated technology and complex smart contracts. Therefore, the Metavault Trade team is working on GMX V2 with completely new technology.
Steve explains that their goal is not to bring all the liquidity available to Metavault Trade. He says that the goal is to improve the user experience for all traders.
For this reason, he says that Metavault Trade would prefer to be a liquidity aggregator for DEXs as well.
Steve thinks that competition is not between decentralized protocols but rather against centralized exchanges (CEXs). He believes that CEXs offer a better user experience.
Steve states that building an aggregator with other DEXs requires building proxy contracts between protocols. He gives an example of MUX Protocol which is already aggregating between Gains Network and GMX.
Steve believes that cross-chain messaging is necessary for interacting between different chains. He gives an example that the messaging can be done from the Ethereum side while position handling is done on Arbitrum in the background.
If you read these 2 Notes on Revelo Intel you would have saved: 1 hour and 42 minutes!
Lido Finance - V2 Upgrade, Withdrawals and Staking Route
In this Lido Finance Twitter Spaces which took place on May 18th, the Lido Finance team -kadmil.eth, Izzy, pshe.eth, and Dmitriy Gusakov- discuss the Lido V2 upgrade, withdrawal mechanism, staking router, security measures, and testnet process. Read our notes below to learn more.
Background
kadmil.eth (Host) - protocol developer at Lido Finance
Izzy (Host) - Master of Validators at Lido Finance
pshe.eth (Host) - protocol developer at Lido Finance
Dmitriy Gusakov (Host) - Lead of Automation at Lido Finance
Lido Finance - non-custodial $ETH liquid staking protocol
Lido V2 Update and New Products
kadmil.eth says that the Lido team has been working for quite some time to launch Lido V2.
kadmil.eth states that the Lido team has shipped two important products with this new update. He explains that the first product is the withdrawal mechanism.
According to him, withdrawal mechanisms allow users to easily withdraw their staked $ETH without relying on secondary markets.
He emphasizes that the Lido team tried its best to provide a superior user experience.
kadmil.eth explains that the second product is the staking router. The staking router employs a flexible architectural design that facilitates the inclusion of various types of Node Operators, such as individual stakers, Decentralized Autonomous Organizations (DAOs), and Distributed Validator Technology (DVT) clusters. This inclusive approach aims to raise a more diverse ecosystem of validators, helping decentralization.
According to kadmil.eth, the voting process took 3 days and the team has worked hard to ensure the results favored the upgrade.
He believes that the voting process for the Lido V2 upgrade was one of the fastest on-chain forums seen in recent times.
Security Measures for Lido V2 Upgrade
kadmil.eth highlights that significant work was done by the development and research teams leading up to the launch. He mentions that at least 9 audits were conducted by reputable organizations, such as Sigma Prime, ChainSecurity, and Oxorio, to ensure the code's quality, security, and compliance with best practices.
He says that the aim of the audits is to provide confidence in the functionality of the protocol.
kadmil.eth states that the audit reports have not been published yet, but will be announced after all the findings from the audits are reviewed by the team.
According to kadmil.eth, Lido has 29 node operators, with different teams and setups, serving as validators for the protocol. These node operators were responsible for performing validation duties on the Ethereum blockchain.
He explains that from March 24th to April 24th, all node operators went through different withdrawal tests to ensure the safety and resilience of the upgrade.
He mentions that after the launch, the team will closely monitor the behavior of the code.
kadmil.eth expresses satisfaction with the upgrade so far but remains cautious, ensuring that everything functions as expected.
He stresses that monitoring the system is important to ensure the proper functioning of the protocol.
Testnet of V2 Upgrade
Izzy explains that during the testnet, different scenarios under different circumstances were conducted to observe the upgrade before shipping it to the mainnet.
He says that all validators participated in the testnet, and none of the validators have left the testnet process - no significant issues have been experienced.
Izzy explains that during the testnet, they conducted the biggest unstaking event ever.
Dmitriy and pshe.eth state that during the testnet, every transaction was on-chain for the public to see, and they checked the resiliency of the upgrade several times to make sure there were no problems with the upgrade.
How did V2 Start?
Izzy says that the idea was to prevent centralized exchanges (CEXs) from capturing market share from Lido, as much as possible, without compromising decentralization. He also says that Lido aimed to expand participation in the protocol with the new upgrade.
Izzy explains that the idea for V2 took its shape one year ago. He adds that before Shapella Upgrade, it was not possible to unstake $ETH and Lido wanted to unlock the potential of the protocol after the Shapella Upgrade.
He believes that Lido can leverage layer-2s to increase participation and the number of transactions of the protocol.
Izzy states that conversations regarding the Lido V3 upgrade have already started.
Staking Router
kadmil.eth states that the aim of Lido is to increase the decentralization of the protocol without compromising the security and robustness of the system.
According to kadmil.eth, the previous system limited the possible diversification of validators.
He says that the staking router enables the on-ramping of new validators more seamlessly and thus will increase the diversification and decentralization of Lido.
pshe.eth says that there are no significant changes in terms of user experience but he believes it will affect the development side significantly. He says that V2 will enable developers to engage with each other and build new models easily.
pshe.eth believes that the staking router will enable better collaboration with Continuous Stake Validation (CVS) teams. He says that this might help to build more products for Lido.
He says that bonding plays a very important role in providing a permissionless operator but the staking router does not support bonding at the moment.
pshe.eth explains that the V2 upgrade incorporated several additional modifications, the most prominent was to rewrite the Oracle smart contract. He says that this revision was necessary to facilitate the withdrawal feature and expand the capacity to accommodate a much larger number of Node Operators.
Important Links
aiPX is the official sponsor of the Daily Bolt by Revelo Intel
In a post-FTX world, securely trading with leverage and earning real yield in a decentralized manner has never been more important.
aiPX offers cutting-edge risk management for liquidity providers, leverage trading, and a suite of products between perpetuals, binary options, and synthetics.
Earn passive yield and trade with leverage straight from your wallet.
Take the step, join aiPX.