LEGO Q4 2022 - Report

LEGO Q4 2022 - Report

Hey Lido community, Merry Christmas and a happy New Year! LEGO committee wish all the best to you in 2023, let it be kinder to all of us and bring positive changes.

There is one more memorable date - on 19th of December Lido celebrated its second birthday! 🎉 ⛱️

Thank you for growing and contributing together to make Lido number 1 protocol for staking!

Issued grants structure

Keeping aligned with Lido’s goal of maximum transparency in addition to LEGO financial transactions database we prepared regular report on what was done during the 4th quarter of 2022.

The biggest grant is $75,000 for membership in Proof Of Stake Alliance (POSA) organization, more on that further in the report. Followed by security assessments, Analytical tools development and support, grants for staking expansion and overall decentralization and many other smaller, yet important grants LEGO concluded Q4’2022 with total equivalent of $247,067 grants disbursed.

Please find a breakdown of grants by categories on the radar chart:


On the next chart you may find grant amounts by initiators. Most of grant were initiated by LEGO council members, but LEGO nominees also took active part in facilitating payments, for example Metrika grant of $18,750 disbursed by Alex L and CC, $20,000 grant to Llama disbursed by JK and Georgious, etc.

POSA membership

Lido received a proposal to join POSA, an advocacy group that fights for regulatory clarity for staking ecosystems. Through targeted advocacy, educating lawmakers, research, and supporting and bringing lawsuits, they are working to ensure the creation of innovation-friendly laws and regulations so staking can reach its full potential. LEGO committee believes that this representation is crucial, as a silent voice cannot be heard and negotiated with. By the council vote LEGO decided to compensate for the first year of membership in POSA ($75,000), as well as provide dedicated support for the liquid staking working groups.

Security assessments

RockX and Hyperelliptic teams received a remaining part of compensation ($28,000 and $9,000 respectfully) paid to Dedaub for the security audit of Lido on Avalanche smart contracts. The report is being finalized at the moment and will be uploaded to Lido audits catalogue.

A compensation of $15,760 was transferred to Oxorio for the L2 ERC20 token bridges for Arbitrum and Optimism chains audit.

  • Total Issues: 9 (6 Fixed, 2 Acknowledged, 1 No Issue)
  • Critical Issues: 1 (1 Acknowledged)
  • Major Issues: 1 (1 Fixed)
  • Warning Issues: 1 (1 Fixed)

Link to the report.

Quick reminder - major Security assessment costs are integrated into Lido-1 budget.

Analytical tools development

Compensation of hosting and maintenance expenses for q3 and q4’2022 in total amount of $31,231 disbursed to abstract_df for Lido Validator Dashboard in accordance with the schedule. You may take a look at the original proposal on our research forum.

1/4th of a $75,000 grant was paid to Metrika to kick-start a MEV Relay Dashboards and Alerts solution development to help Node Operators understand the performance of Relays in real time and make adjustments in case a Relay is not performing as expected. Lido members will have free access to dashboards and alerts for 6 months after delivery. After the 6 month period Metrika will ensure that access will be free for any Node Operators with ≤5 validators. Please read the proposal for more details on this grant.

Kudos and a sandgrain grant to Toni Wahrstatter for the MEV-Boost dashboard showing MEV-Boost dynamics, main contributors and many more!


Lido expansion

$20,000 worth grant in LDO equivalent using 14d TWAP was disbursed to Llama for the delivery of stMATIC Aave V3 integration on Polygon. Folks from Llama made this come true handling everything from governance post to voting and technical work on contracts. 🥳

Also $5,000 equivalent (3,596.48 in LDO) using 14d TWAP was sent to Matrixport for testing a rewards booster for staking.


Decentralization support

Stereum is a tool developed by Streum’s team of RockLogic to manage the process of setting up & maintaining an Ethereum node for you with a heavy focus on self sovereignty & privacy, and flexibility. Stereum aims to be the most flexible way to leverage your Ethereum node for staking, data science, dApp hosting and development or your own personal use case. Folks from Stereum reached out to LEGO committee with a proposal requesting $20,000 to support further development of the project. Considering proved long track of record cooperation with RockLogic (One of Lido’s node operators and developer of SyncLink) LEGO committee happily voted to support Stereum continuous development.


Community, Marketing, Events

Community and Marketing grants are mainly represented by grants to contributing community managers and marketing specialists, supporting the Lido community itself or Lido contributing teams. In case of long term cooperation these would be integrated into Lido-1 budget.


Research and other nice grants

LEGO disbursed a $4,000 grant to Officer_CIA for the next 6 months of development and maintenance of DeFi learning materials base. There were also bug bounties paid and a lot of other nice stuff made by Lido community members deserved the attention and a thank you! 🙏

Q4’22 LEGO results

For sure it was not a no-grants November 👀 - $144K is the absolute max during the 4th quarter of 2022 (the biggest contributor is POSA membership grant), although far from whopping $330K in August 2022, close to the average monthly grants of $150K for the 2022 period ($82K for Q4’2022).


To compare Q4 to the first 9 months of 2022 in a more fair manner it’s better to exclude security audits compensated via LEGO which for the past year totaled $498K, due to plan to decrease LEGO budget usage for this purpose. In that case monthly average grant for the whole year would be near to $109K and $65K for Q4’2022.


Overall budget used during Q4’2022 was $247,067 using daily average prices of LDO where appropriate, which constitutes 49.4% of total $500K allocated per quarter - unfortunately LEGO committee was a little bit late with payment of Nethermind and Rat3d grants, which eventually fell to the beginning of January. The proposal to diversify LEGO budget set the budget split to 40% / 60% of LDO and DAI. Grants by tokens split in Q4’22 was 87.4% stables, 12% LDO and 0.6% ETH (bounty payments) as most grants were requested to cover for incurred development, maintenance costs and 3-rd party services payment. Resulting split for 2022 year is 33.4% LDO, 64.5% stable coins, 2.1% ETH.


Once again - LEGO wishes a happy, more bullish and bright new year to you, offering higher yields, broader decentralization and deeper engagement into the process of better future construction!

Stay tuned, stay safe!