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Administration

Lido on Polygon is governed by the Lido Decentralized Autonomous Organization (Lido DAO). Members of the DAO β€” holders of the LDO governance token β€” 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.