Decision on Kyber Network's position in the Oracle Set: rotate to Caliber or remove and change the quorum

TLDR

Kyber Network - Lido on Ethereum Oracle Set member - is transitioning its infrastructure operations to a newly formed entity, Caliber. The DAO is asked to consider replacing Kyber Network with Caliber in the oracle set. If the DAO does not support the direct handover, a full selection process for a new oracle operator will be launched.

Motivation

In recent months, Kyber Network has initiated the transition of its infrastructure operations to a new dedicated entity — Caliber.

Mike Le, Kyber Network’s CTO, provided the following context on the new entity:

A new entity has been founded by one of Kyber Network’s founders - Loi Luu - where most node infra related activities will happen, and some existing infrastructure related activities, previously under Kyber Network, are set to be transitioned to, leveraging the new team’s extended focus and expertise in infra.

To reflect the Kyber Network team’s ongoing evolution — and given that the operations enabling oracle-related responsibilities are being transitioned to a new entity, Caliber — it is necessary to reassess Kyber’s status within the Lido on Ethereum oracle set.

Given the strong alignment and continuity between the Kyber Network and Caliber teams, technologies, infrastructure, and operational expertise, a direct rotation Kyber Network to Caliber in the Lido on Ethereum oracle set is proposed as one of the potential options in this case. However, if the DAO does not support a direct rotation Kyber Network in favor of Caliber, a full oracle operator selection process will be initiated to identify and onboard a new member of the Lido on Ethereum Oracle set in place of Kyber Network.

The Caliber team is ready to take on the responsibilities currently managed by Kyber Network within the Lido on Ethereum Oracle set, and presents their ongoing contributions and infrastructure commitment as follows:

As a leading Web3 Venture Builder, Caliber empowers visionary founders to create transformative startups in consumer apps, DeFi, and blockchain infrastructure.

In addition to our investment and incubation efforts, Caliber brings extensive expertise in node operations. We serve as delegated node validators for prominent networks such as NEAR, Babylon, and Chromia. Our active engagement in Babylon’s governance and ecosystem development, underscores our commitment to fostering growth across these networks, particularly in Vietnam and the broader Southeast Asia region. Furthermore, Caliber operates Ethereum node validators on the mainnet, demonstrating our commitment to the Ethereum community as a whole.

Currently, we operate a variety of blockchain nodes—including an Ethereum archive node and validator nodes for Chromia, Babylon, and NEAR to name a few—with virtually 100% uptime. We run them on a combination of dedicated servers and cloud platforms (GCP and AWS), and maintain comprehensive backup and recovery processes to ensure continuous stability and high availability. For redundancy, we set up backup nodes to fail over if one experiences an issue—for example, we always provision two Ethereum endpoints. Given the importance of security, we also have intensive procedures in place to manage private keys and operating wallets.

As part of the onboarding preparation, Caliber has completed a testing period as an oracle operator on the Ethereum Hoodi testnet. During the testing period, the oracle infrastructure demonstrated consistent performance and reliability: all oracle reports were delivered on time, and operations proceeded smoothly without disruptions.

Next steps

The vote offers two options for tokenholders:

Option 1, Rotate Kyber Network to Caliber: Rotate Kyber Network out for Caliber in the Lido on Ethereum Oracles (while keeping the current quorum of 5/9), or

Option 2, Remove Kyber Network: Remove Kyber Network from the Oracle set, temporarily change the required quorum from 5/9 to 5/8, and initiate a comprehensive search and selection process for a new oracle.

If this vote gets DAO support, the next step will be an on-chain voting for:

• in case Option 1 passes, execution of the oracles rotation, or
• in case Option 2 passes, removing Kyber Network from the Oracle set.