[rerun] Should the Lido DAO recognize the wstETH Bridge Endpoints on Linea as canonical?

The proposal is to recognize the wstETH token bridging endpoints on Linea by the Lido DAO. If Snapshot passes, the Lido DAO will be the wstETH token proxy admin on Linea. Lido DAO will only have the upgrade authority of the wstETH proxy contract, and will not be able to manage the native bridge itself.

Linea, a zkEVM developed by Consensys, submits this proposal to seek Lido DAO’s formal recognition of the deployed wstETH token as canonical on Linea and to request the DAO’s recognition of the Lido-specific bridge contracts. Canonical means native/default. In the bridging context, a canonical token is the one that is minted by the native bridge such as Linea’s native bridge in this case.

The proposed components utilize Linea’s native bridge instance for the message transfer. The architecture, is distinct from the usual custom token gateways used for wstETH on L2, involves using a shared bridge instance managed by Linea. Importantly, the token’s upgradeability is maintained, with the token proxy admin being separate (Lido DAO) from the bridge admin (Linea’s Security Council) instance. This approach aligns with the unofficial guidelines presented by the NEW (Network Expansion Workgroup) and is future-ready for wstETH. As such, neither the bridge nor Lido DAO take any additional fees from users. The regular gas fees required for transaction execution will still be charged to the user. In case of an emergency, Linea’s Security Council has permission to pause and unpause the entire bridge, which also pauses wstETH deposits and withdrawals.

Motivation

stETH has become a cornerstone asset in the Ethereum ecosystem, boasting a market capitalization of $17B and over 250,000 holders. Acknowledging its essential role and the growing demand throughout the Ethereum community, its introduction into a new platform is strategically targeted to benefit stETH holders, particularly in the Layer 2 and DeFi space where stETH is presented through its wrapped version (wstETH). As a key asset, wstETH plays a vital role in DeFi activities across network segments.

Audits

To better form an opinion you may consider reading through the following audit reports.

| Audit firm | Date | Contracts | | --- | --- | --- | | OpenZeppelin | October 2023 | Canonical Token Bridge | | Diligence | October 2023 | LineaBridgeExecutor | | Diligence | June 2023 | Canonical Token Bridge | | Diligence | June 2023 | Linea Message Service | | Mixed | - | All Other Audits |

Mainnet contracts

Ethereum

• DAO Agent on L1: 0x3e40D73EB977Dc6a537aF587D48316feE66E9C8c
• wstETH on L1: 0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0
• L1 Token Bridge (Canonical Bridge): 0x051f1d88f0af5763fb888ec4378b4d8b29ea3319

Linea

• LineaBridgeExecutor: 0x74Be82F00CC867614803ffd7f36A2a4aF0405670
• ProxyAdmin for wstETH: 0xF951d7592e03eDB0Bab3D533935e678Ce64Eb927
• wstETH on L2: 0xB5beDd42000b71FddE22D3eE8a79Bd49A568fC8F
• L2 Token Bridge (Canonical Bridge): 0x353012dc4a9a6cf55c941badc267f82004a8ceb9

Levers setup

The levers and proxy admins are prepared to set the admin role of the wstETH token contract to the Lido DAO, contingent on successful snapshot approval.

• For the Linea Bridge Executor
  • getEthereumGovernanceExecutor is the Lido DAO Agent
• A bridge admin and owner on L1 is the Linea Security Council
  • proxy admin for L1 TokenBridge
  • owner for L1 TokenBridge
• A bridge admin and owner on L2 is the Linea Security Council
  • Proxy admin for L2 TokenBridge
  • owner for L2 TokenBridge
• For the proposed wstETH token on L2 (CustomBridgedToken)
  • Currently, the Linea Security Council is the proxy admin. The plan is to transition this role to the Linea Bridge Executor upon snapshot approval, leveraging a newly deployed ProxyAdmin instance.
• No dedicated emergency breaks multisigs are allocated or assigned with this proposal