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Administration

Lido on Polygon is governed by the Lido Decentralized Autonomous Organization (Lido DAO). Members of the DAO — holders of the LDO governance token — can vote on high-level proposals, such as whether to expand to a new chain. For day-to-day tasks, we have a much more narrowly scoped need for somebody to execute privileged operations: an administrator. The administrator rights reside with a 3-out-of-5 multi-sig that consists of established validators and ecosystem partners.

Administrator responsibilities

Lido on Polygon is a program that runs on the Ethereum blockchain. The Program has an upgrade authority: an address that can replace the program with a newer version. This upgrade authority has a lot of power, especially for a program like Lido on Polygon that manages user’s funds. After all, the upgrade authority could deploy a new program that withdraws all staked Matics into an address of their choice. Therefore, it is essential that the upgrade authority is trustworthy.

Multisig administration

Different administration methods exist, each with different advantages and disadvantages.

  • A single person could act as the administrator. This has a very low overhead, and the administrator can move quickly when there is a need to deploy a critical bug fix. However, it also places a high degree of trust in a single person.
  • On the opposite side of the spectrum, a DAO program could act as the administrator. Administrative tasks could only be executed after a majority of LDO token holders approve. This is decentralized, but it makes it very difficult to act quickly when needed.

A good middle ground between these two extremes is a multi-sig, a program that executes administrative tasks after m out of n members have approved. For m greater than one, no single party can unilaterally execute administrative tasks, but we only need to coordinate with m parties to get something done, not with a majority of LDO holders.

Multisig details

For Lido on Polygon, we use the gnosis-safe, and we require approval from 3 out of 5 members. The members are:

  1. Shard Labs: Jakov
  2. Lido: Vasiliy, Victor
  3. Polygon: Hamzah, Aishwary

The addresses of the multi-sig members are listed on the deployments page. The multi-sig instance is used both as the upgrade authority of the program and as the manager of the Lido on Polygon instance.

Pause/Unpause stMATIC

The StMATIC contract can be paused by:

  1. The Lido contract deployer (Jakov).
  2. The (Multisig).

The StMATIC contract can be un-paused by:

  1. The (Multisig).

The functions affected when the contract is on pause

  • submit
  • requestWithdraw
  • delegate
  • claimTokens
  • distributeRewards
  • claimTokensFromValidatorToContract

Pause/Unpause NodeOperatorRegistry

The NodeOperatorRegistry contract can be paused by:

  1. The deployer (Jakov).
  2. The (Multisig).

The NodeOperatorRegistry contract can be un-paused by:

  1. The (Multisig).

The functions affected when the contract is on pause

  • removeInvalidNodeOperator
  • setRewardAddress