Lido DAO

Tl;Dr

One of the parts of Lido on Ethereum protocol is GateSeal.

A GateSeal is a one-time use Smart Contract that allows a designated account to instantly put a set of contracts on pause (i.e. seal) for a predetermined amount of time. GateSeals are meant to be used as a panic button for any crucial contracts in case of an emergency. Each GateSeal is one-time use only and immediately becomes unusable once activated. If the seal is never triggered, the GateSeal will still eventually expire after a set period.

Lido on Ethereum protocol contains using a single GateSeal for two contracts that affect withdrawals:

1. Withdrawal queue (users’ side of withdrawals)
2. Validator exit bus oracle (Node Operators’ side of withdrawals).

It allows to pause the contracts for 6 days to provide the DAO with an opportunity to respond to unforeseen vulnerabilities within the Lido on Ethereum protocol.

Initially, the expiration date was set for May 1, 2024 (Lido V2 GateSeal Committee).

The proposal seeks to prolong the functioning of the GateSeal mechanics with the same parameters for the following year, till 1 April 2025.

Proposed decision

It’s proposed to use the new instance of the GateSeal Blueprint (0xEe06EA501f7d9DC6F4200385A8D910182D155d3e), deployed with GateSeal Factory (0x6c82877cac5a7a739f16ca0a89c0a328b8764a24). The GateSeal Factory and GateSeal Blueprint contracts were audited during the Lido V2 upgrade: GitHub - lidofinance/audits

The proposed parameters for the new GateSeal are:

• Have the same list of sealables
  • Withdrawal Queue (proxy): 0x889edC2eDab5f40e902b864aD4d7AdE8E412F9B1
  • Validator Exit Bus Oracle (proxy): 0x0De4Ea0184c2ad0BacA7183356Aea5B8d5Bf5c6e
• Use the same 3/6 multisig 0x8772E3a2D86B9347A2688f9bc1808A6d8917760C
• Set the activity duration till 1 April 2025
• Set the same pause duration of 6 days (518400 seconds)

The GateSeal Committee (https://research.lido.fi/t/lido-v2-gateseal-committee/4561) continues oversight, ensuring ongoing public updates on actions.

GateSeal multisig chores

To ensure the functionality and preparedness of the GateSeal, the following additional actions are also proposed:

• @skozin will depart the GateSeal multisig leaving a vacancy, so it is proposed to rotate their address  0x2CAE3a4D4c513026Ecc6af94A4BA89Df31c8cEA3 for @theDZhon (Lido on Ethereum protocol team) with address 0x59f8d74fe49d5ebeac069e3baf07eb4b614bd5a7.
• The incident response drill will be conducted by DAO Ops team by no later than June 30, 2024. The incident response drill is to be had in order to ensure that the GateSeal signers are ready to react to the situation requiring their immediate action.

Next steps

The new instance of GateSeal will be deployed and announced under the post. The deployment verification by a third-party audit team will be posted on the forum before the on-chain voting.

If this proposal is approved by the DAO, the on-chain vote will be launched to make changes to contracts.