[Asset Onboarding Application] - $stSOL - Lido

[IvanM]

[Asset Onboarding Application] - $stSOL - Lido

Author(s): @IvanM
Tags: asset-onboarding
Asset Name: Lido Staked SOL
Asset Code: stSOL
Submission Date: 2022-08-29
Ratification Date: 2022-09-20
Status: Active
Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-stsol-lido/1054
If endorsed by Jet Community Member, list here: @MJSchobert

Application Profile

1. What is your motivation for submitting this application?

This is a proposal to list Lido’s stSOL on Jet Protocol and build a partnership between the two.

2. What is your association to the proposed asset?

Member of the core team.

3. What are the key benefits to the Jet Protocol for onboarding the asset?

Lido stSOL is a non-custodial liquid staking protocol built on Solana. stSOL has currently onboarded 15 validators to date. The goal of Lido and liquid staking is to make Solana more decentralized and secure.

As stSOL is not rebasing (increasing balance) the value of stSOL will increase over time relative to SOL. This makes stSOL a best in class collateral asset to borrow against. This allows Jet users to take a long position against SOL while also giving users flexibility to leverage additional assets across DeFI.

Lido proposes initially seeding this pool with at least 25,000 LDO per month for at least the first 3 months if this proposal passes and after stSOL is listed.

4. What are the known limitations of the asset?

Technical Risk: Lido stSOL has been audited by both Neodyme and Bramah. The reports and overview can be found here.

Counterparty Risk: Lido is permissionless and non-custodial. People cannot face direct counterparty risk through our protocol.

Liquidity Risk: Even though stSOL is backed by SOL, there are still elements of liquidity risk. With the withdrawal timing, liquidation events would require just in time liquidity that could be a risk vector. However, after, the SOL can always be redeemed from the contract by burning stSOL.

Price Feed Risk: stSOL price is directly linked to Sol price. In order to maintain the relative peg as the price of stSOL increases over time against SOL we use Pyth on-chain feeds.

Project Profile

1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).

Solana is the native ecosystem for $stSOL.Lido for Solana not only makes it very easy to stake but also provides further utility through stSOL.A SOL token holder connects their wallet to https://solana.lido.fi and deposits their tokens into the Lido program. They immediately receive stSOL tokens that represent a share of the total pool. Every user’s tokens are held in a pool controlled by the Lido program.

2. Who are the founding members? What is their current involvement with the project?

Vasiliy Shapovalov and Konstantin Lomashuk, both are currently Lido DAO members.

3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).

N/A

4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?

N/a

5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?

The way of issue $stSOL is throughout the minting mechanism.

6. What is the current token distribution (project team vs. investors vs. public)?

$stSOL is entirely distributed among the users.

7. Are there any fees generated by the protocol?If yes, please provide details and amounts.

Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO treasury, and Lido on Solana developers. This fee cut is applied to incentivize Lido maintainers. To incentivize sustainable management of the Lido ecosystem, half of the fee split (=5%) is given to the node operators, 1% to developers, and 4% to the DAO treasury which can further utilize it in avenues like grants, insurances, and value accrual to LDO. $stSOL - Fees

8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.

Yes, Neodyme & Bramah System.

9. Is the protocol open source? If yes, please provide links to the repository.

Yes, Lido is Open Source.

10. Other relevant project data or comments:

Asset Profile

1. Asset name:

Lido Staked SOL

2. Asset type (native/ wrapped):

Native

3. One-sentence description of the asset:

$stSOL is a liquid staking token that is redeemable for SOL that has been staked with Lido.

4. What’s the purpose of the asset within its native ecosystem?

The goal of Lido and liquid staking is to make Solana more decentralized and secure.

5. Does the asset have any use outside of its native ecosystem (integrated protocols)?

No

6. Please provide all Smart Contract address. If the project is open source, detail how the Smart Contracts are implemented.

Address 7dHbWXmci3dT8UFYWYZweBLXgycu7Y3iL6trKn1Y7ARj
Mint Authority 8kRRsKezwXS21beVDcAoTmih1XbyFnEAMXXiGXz6J3Jz

Asset Liquidity

1. What exchange(s) support the asset?

CEX: FTX
DEX: Aldrin, Orca, Serum, Raydium & more

2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?

Yes

3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).

TVL: 2.9M
24h Trading Vol: $55,5K
7 Day Trading Vol: $521,2k

4. Which oracles monitor the asset? How many feeds are available? -

Pyth Oracle

5. How often does the asset drop significantly in price? Please provide a link to the price history.

$stSOL price is attached to $SOL price. See SOL price. The price of both has decrease significantly due to market conditions since November 2021.

6. For stablecoins only: Has the asset ever lost the peg? If yes, for what reason?

N/A

7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.

N/A

8. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?

N/A

9. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?

Total staked with Lido 3,315,371.2 SOL
Stakers 15,564
stSOL market cap $146,208,967
Additional stats: Dashboard 1, Dashboard 2

10. List any parties interested in taking part in liquidations for the proposed asset type.

N/A

Key Mechanics

1. How many active addresses/ users currently hold the asset?

Holders: 27,383

2. Please provide a brief overview of the tokenomics.

stSOL is the liquid token that represents your share of the total SOL pool deposited with Lido. As soon as you delegate to the pool, you receive the newly minted stSOL. Over time, as your SOL delegation accrues staking rewards, the value of your stSOL appreciates.

3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?

$stSOL is expected to increase as long as Lido reaches more users on Solana. The burning /issuance mechanism relies on users stakes or unstake SOL on Lido.

4. Please explain the staking mechanism (if any).

There is no $stSOL staking mechanism provided by Lido. Despite this, users can acts as a $stSOL liquidity providers on different existing protocols such as Aldrin, Orca and Mercurial.

5. Please explain the slashing mechanism (if any).

N/A.

6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?

N/A

7. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?

N/A

Legal Profile

1. Is the project or the asset owned by any incorporated organization?

DeFi Ltd

2. In which jurisdictions was the token issued?

Since Lido is made available by DeFi Ltd and this legal entity is hosted in Cayman Islands, we can assume that $stSOL is issued under the Commonwealth Jurisdiction.

3. Was the token issued as part of regulatory process (e.g. securities offering)?

No

4. Was the token issued as part of fundraising process?

No

5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.

No

6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.

No

Links

Link to project’s white paper:

• Lido for Solana

Link(s) to active communities related to the project:

• Discord
• Telegram
• Twitter: @LidoFinance, @LidoOnSolana

Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:

• Documentation Portal
• Github

Link(s) to audits - both procedural and Smart Contracts:

• Security | Lido For Solana

The poll below is solely for signaling purposes to showcase the sentiment of the community.

Should $stSOL be included as an asset type on Jet Protocol?

• Yes
• No

[soze]

Thank you @IvanM for writing up this application for stSOL.

Lido is a leader in liquid staked derivatives. This one should be a definite “YES” for JET to onboard.

[jrmoreau]

Excited to see this application completed!

[sumptuous]

we can’t overemphasize the impact of liquid staking derivatives on solana. keeping lifeline of the blockchain secured and decentralized through validators. This proposal is a YES for me. let’s get stSOL onboard.

[Marco]

Hey @IvanM thanks for starting the application for $stSOL. Great read. Excited to see the community decision begin !

[Bobbay_StableLab]

This is a great addition to Jet protocol, and we will be supporting this. Thanks for the clear write-up.

[adamdelsol]

Hello @IvanM,

Thank you for submitting this application!

The JetDAO Governance Committee has completed a high-level review of this Asset Application and determined the asset as acceptable to continue with the Onboarding Application. This is not an endorsement of the asset from the Governance Committee.

To continue the onboarding process, we have launched a 7-day off-chain community sentiment poll (see original application post) to gauge the interest of onboarding this asset, as well as help facilitate the community discussion.

Following the conclusion of the Poll, the Governance Committee will publish a summary of the CODEC assessment with a formal decision of allowing the Asset to move forward with the On-chain governance vote and potentially onboarding.

This Poll will run 7 days, and is used to gauge the interest of the Jet Protocol Community on Onboarding this asset as a collateral to Jet Protocol

[Marco]

Dear Community,

With 100% positive votes and a passage of 7 days, the collateral sentiment off-chain community poll has concluded.
With the conclusion of this poll, it is time to exercise your $JET token votes.

The $stSOL on-chain vote will be executed via the governance platform starting today (09/13/2022) and will be live for the following 7 days.

While the vote is ongoing please take the opportunity to discuss the proposal with your fellow community members here within the forum and to review the CODEC and executive summary available here.

Community Discussion

JetDAO community members has shown great enthusiasm and interest in bringing $stSol to On-Chain voting.

Community Poll Results

The $stSOL collateral sentiment off-chain community poll has concluded with a 100% favorable vote.

[Marco]

Dear Community,

The On-Chain Governance vote for $stSOL has concluded. We thank all those that have participated in shaping the future of the Jet Protocol.

With 100% of the vote, $stSOL has been approved for onboarding.

Users will be able to interact with the asset on Jet approximately this week.

Join our Governance App, stake your $JET tokens and participate in future proposals !