LEGO Q3 2024 - Report
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LEGO Q3 2024 - Report

Let's take a moment to review the achievements of LEGO in the third quarter of 2024.

This quarter, LEGO has invested heavily in significant social and research projects, as well as the development of analytical tools that are essential for contributors.

Through this report, the LEGO committee aims to provide you with a clear understanding of the progress and vitality within our ecosystem during Q3 of 2024. We hope you find the advancements we've made inspiring!

Issued grants structure

To ensure maximum transparency, the LEGO committee has produced a regular report highlighting the accomplishments of the third quarter of 2024.

In this quarter, Social Impact and Decentralization support grants led with a total of $50K. Following were allocations for Research ($30.81K), Analytical tools dev. and support ($9.36K), Bug bounty ($9,32K), Community Support ($9.31K) and Protocol development ($3K).

Overall, the disbursed grants for Q3 2024 amounted to $111.8K.

Please refer to the following radar chart for a visual representation of grants by categories:

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On the next chart you may find grant amounts by initiators:

And the most productive grantor is… 🥁 Kadmil! with $8,25K 🥇, congratulations! Followed by Eugene_Pshenichniy🥈 with $5,5K and Alex🥉 with $5,36K.

1. Decentralization Support and Social Impact

1.a Liquid staking donation initiative Stake2Care

Nobel Peace Prize holder Doctors Without Borders / Médecins Sans Frontières (MSF) has requested an innovation grant to support the development of a pioneering liquid staking donation initiative Stake2Care. This project has significant social importance and the LEGO committee has decided to lend its support to the proposal.

Stake2Care is an initiative by Médecins Sans Frontières (MSF) that allows ETH holders to stake through the Lido protocol and donate their rewards to charity. It offers a unique way for the Lido community to support medical aid using staking rewards. The initiative ensures donors know their contributions are used effectively and helps fund MSF's emergency response, allowing quick action in humanitarian crises, therefore, the project is of great social importance.

MSF requested the grant payment of $100K, first 50% (in DAI) of which ware disbursed when the tasks of the first stage (Design, Development, ImpactVault and ImpactVaultDepositor contracts deployment) were successfully completed.

The second part of the grant is planned to be landed in November, after following items are delivered:

  • Tax exemption certificate
  • Fundraising Dashboard
  • Interface / documentation for exchanges and protocol integration
  • Ancillary TimeLocked Staking Smart Contract
  • Point System for future incentives

2. Analytical Tools Development and Support

2.a Dashboard on the Flipside Crypto platform

The LEGO committee has supported the development of the Dashboard on the Flipside Crypto platform, which provides users with visualized and interactive information about key metrics and indicators related to the Lido protocol, including staking volumes, yields and user activity.

This dashboard was created as a backup of Lido Extended dashboard, created for redundancy, as the information presented in this dashboard is highly important for the community and contributors.

A budget was requested in the amount of $4K (in DAI), and was already fully transferred after the work on the report was successfully completed.

2.b (st)ETH's liquidity monitoring and assessment

The final 5K LDO ($5,36K) of the Glass Markets’ proposal to build and maintain ETH and stETH dashboard has been disbursed according to the grant schedule.

3. Community Support

3.a The Grand Timeline

The Grand Timeline project is an ambitious initiative aimed at creating a unified and transparent chronology of key events in the world of cryptocurrencies and blockchain technology. Its importance to the crypto community lies in its ability to gather and systematize information about significant occurrences, such as the launch of new projects, changes in legislation, and technological breakthroughs.

This helps both newcomers and experienced participants navigate the dynamic world of cryptocurrencies, make more informed decisions, and contribute to the further development and adoption of blockchain technologies.

The committee has allocated a grant for this initiative in the amount of 3,5K LDO (approx. $5,5K at the moment of the tranche).

Check out the Grand Timeline yourself - follow link.

3.b Other community support grants

4. Protocol Development

Support and Maintenance of Holesky Safe deployed by Protofire ($3K).

Summary of the key tasks and activities completed during Q3:

  • [Issue] - Native WC not connecting
  • [Update] Holesky Safe Update - Roll Out #12
  • [Feature] Integrate Wallet - Trezor
  • [Feature] Integrate Safe App - Token Approval Manager
  • [Issue] Holesky Safe - Slow transaction indexing

And many more, please refer to the proposal (link) for the complete list.

5. Security Assessments (incl. bug bounties)

Bug bounties submitted and confirmed at Immunefi platform amounted to $9,32K in Q3 2024.

6. Research

6a. Oxford University Press book on the basics of decentralized organizations

The LEGO Committee is dedicated to supporting educational and research programs.

Therefore, the proposal of Bianca, a co-author and contributing author of the forthcoming Oxford University Press book "Foundations of Decentralized Organizations: Blockchain and the Future of Corporate Law", was supported.

DAOs are in need of deeper exploration by the broader community and such opportunity could be of great value.

Lido's contribution to researching and developing effective dispute resolution strategies via supporting this project will help to create meaningful long-term benefits for the entire ecosystem of decentralized organizations, enhancing its resilience and attractiveness. The chapter on dispute resolution in DAOs will allow DAOs to contribute to the formation of legal norms and standards, helping to resolve potential legal issues in the future and improving interactions with regulators.

The book will be published in 2025 and the official release date will be announced at a later date.

Grant amount requested from LEGO: $20K (in USDC), already has been transferred.

6.b stETH-based Swaps using ERC-6123 research paper

The research project on risks and opportunities of stETH-based Ethereum Staking Rate Swaps for the Lido ecosystem offers significant advantages, making staking more attractive for users, so it was approved by LEGO committee.

The introduction of such swaps can enhance liquidity and stability, attracting more conservative participants and improving the balance of staking rewards. It also allows validators to stabilize their reward and maintain liquidity for participation in other DeFi activities, creating a foundation for future infrastructure and innovative financial products within the Lido ecosystem.

30% ($10,8K in DAI) of the total grant amount has already been transferred in advance, 70% ($25,2K) will be transferred upon publication of the research report.

LEGO Q3 2024 Results

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Overall budget used during Q3 2024 was $111.8K using daily average prices of LDO where appropriate, which constitutes 22% of total $500K allocated per quarter.

Token budget split of 20% / 80% LDO / DAI set out previously looks to stay relevant. As we can see grants by tokens split for 12 months of 2023 was 91.3% stables and only 8.7% LDO, whereas Q3 2024 structure is 10.7% LDO and 89.3% USD stable tokens.

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Community Lifeguards Initiative

This quarter, the CLI Sub-Committee on-boarded a new Community Lifeguard StakeCat, created extensive new content, organized and participated in 10 community activities (across Asia and Latam), and supported the launch of the CSM testnet (in particular, by converting existing Lido community members into CSM operators and building strong relationships with Ethereum-aligned communities to foster new solo stakers).

The CLI Sub-Committee spent 23,700 USD (39.5% of the grants budget) on grants this quarter between event sponsorships, CSM Resources, integrations and regular grants.

Also in this quarter, 34.34% ($6,87K) of the quarterly budget for Operative Expenses (20K DAI) was spent. 87.8% of the costs were related to travel expenses for conferences, and the remaining amount was spent on software used to support CLGs’ work.

For more details about CLI achievements during this quarter please refer to CLI Q3 2024 report.

Stay tuned, stake safe!