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3 Easy Track Motions for DAO routine operations Approved Bogdan Kovtun (psirex), Gregory Stepanov (grstepanov) https://research.lido.fi/t/lip-3-easy-track-motions-v2/794 2021-07-09

Summary

Problem

Lido DAO governance currently relies on Aragon Voting App model. Upon community discussion, DAO approves or rejects proposals via direct on-chain governance token voting. Though transparent and reliable, it is not a convenient way to make decisions only affecting small groups of Lido DAO members. Besides, direct token voting doesn't exactly reflect all the decision-making processes within the Lido DAO and is often used only to formalize the consensus reached in research forum discussion or via snapshot voting. There are a few natural sub-governance groups within the DAO, e.g. node operators committee, financial operations team and LEGO committee. Every day they need to take routine actions only related to their field of expertise. The decisions they make hardly ever spark any debate in the community, and votings on such decisions often struggle to get the quorum and get enacted on-chain.

Proposed solution

We propose Easy Track frictionless motions as a solution to this problem. Easy Track motion is a lightweight voting considered to have passed if the minimum objections threshold hasn’t been exceeded within the preset voting duration timeframe. As opposed to traditional Aragon votings, Easy Track motions are cheaper (no need to vote ‘pro’, token holders only have to vote ‘contra’ if they have objections) and easier to manage (no need to ask broad DAO community vote on proposals sparking no debate).

Use cases for Easy Track motions

There are three types of votings run periodically by the Lido DAO that are proposed to be wrapped into the new Easy Track motions:

  • Node Operators increasing staking limits
  • Funds being allocated into reward programs
  • Funds being allocated to LEGO program

More types of motions can be added later, e.g.:

  • Topping up Lido staking referral program
  • Purchasing staking cover

Sub-governance groups

There's a formal or an informal sub-governance group within the Lido DAO for each of the voting cases listed above. Those groups have been formed intentionally or in a more natural way, and it falls within their remits to come up with respective proposals for periodical Aragon votings. The proposed improvement will require formalizing sub-governance groups:

  1. Node Operators Committee to start staking limit increase motions.
  2. Financial Operations Team to start funds allocation motions (i.e. LEGO and reward programs).

Node Operators Committee should include addresses of active node operators partnering with Lido, the list is easy to look up in the Node Operators Registry smart contract. Financial Operations Team should consist of established DAO members' addresses and be represented as a Gnosis Safe Multisig with access to corresponding Easy Track features.

Specification

To create a supervised feature as flexible and extendable as possible, we propose splitting Easy Track functionality into several contracts rather than building a single contract for it.

The statement below is abstract, please visit specification.md for full detailed specification.

Easy Track workflow and motion life cycle

A group of core smart contracts will implement basic logic and store data related to Easy Track motions, and a series of separate EVMScriptFactory smart contracts will represent all the supported types of Easy Track motions. This architecture aims to support further extension by adding new types of Easy Track motions without replacing the core of the proposed system.

A normal motion life cycle includes:

  • Motion creation. A motion can be started by an address entitled to start the specific Easy Track motion type.
  • The voting period. A preset timeframe (motion duration) when objections can be submitted by the governance token holders. The motion cannot be enacted until this period expires.
  • Motion enactment. If the objections threshold hasn't been exceeded within or after the voting period, the motion can be enacted by anyone. Before enactment, the motion can be canceled by the address that started it.

This is how it works in terms of smart contract interactions:

  1. A motion can be started by calling createMotion() function on EasyTrack core contract.
  2. Upon motion creation, EasyTrack calls createEvmScript() function on the corresponding EVMScriptFactory contract passing all the data required to generate a motion enactment EVM script.
  3. EVMScriptFactory smart contract generates the script and returns it to the EasyTrack core contract.
  4. EasyTrack contract conducts the motion according to the motion settings (i.e. motion duration, objections threshold and maximum active motions count). Until enacted, the motion can be objected by any LDO token holder or canceled by the address that has started it (even if the motion duration timeframe has already expired).
  5. In case the objection threshold has been reached, the motion gets instantly rejected and impossible to interact with.
  6. As soon as the motion duration expires, it becomes possible to enact the motion (if the objection threshold has not been reached). Anyone can enact the motion from that moment on.
  7. To enact the motion, the EasyTrack contract recreates the enactment EVM script and passes it to the EVMScriptExecutor smart contract for execution.
  8. EVMScriptExecutor holds all the permissions to run valid enactment EVM scripts passed from the EasyTrack smart contract.

Easy Track system schema

Core smart contracts

The list of core Easy Track contracts includes:

  • EasyTrack - contains the basic motion logic and data related to all the active Easy Track motions;
  • MotionSettings - contains logic to set objections threshold, motion duration and maximum active motions count;
  • EVMScriptFactoriesRegistry - contains logic to add/remove EVMScriptFactory contracts and also an internal method to create EVM scripts;

EasyTrack contract

EasyTrack smart contract is the main contract containing the basic motion logic and data related to all the ongoing (active) Easy Track motions, including the enactment EVM script (hashed), the address that has started the motion, and when it has been started. We propose using byte data type for calldata due to various sets of parameters required for different motion types. EasyTrack stores all the active motions (the ones created but neither enacted nor canceled yet). Once enacted, rejected, or canceled, the motion gets permanently deleted from the smart contract storage, because it is not possible to interact with past motions in any way. All the interactions with active motions also happen as transactions to EasyTrack smart contract, i.e.:

  • create motion;
  • cancel motion;
  • submit objection;
  • enact motion.

MotionSettings contract

MotionSettings contract provides methods to control easy track settings, including motion duration, objections threshold and maximum active motions count.

EVMScriptFactoriesRegistry contract

EVMScriptFactoriesRegistry contract provides methods to add/remove EVMScriptFactory into the list of allowed EVMScriptFactory contracts and also an internal method to create EVM scripts. The internal method _createEVMScript() creates the enactment EVM script by calling the corresponding EVMScriptFactory contract and also checks if the resulting script meets all the required script factory permissions.
A new Easy Track type can be added into the registry via an Aragon voting. The voting script should include calling the addEVMScriptFactory() method referring to the new EVMScriptFactory contract and a set of permissions describing what methods can be called by the resulting EVMScript. The EVMScriptFactory should meet a set of requirements.

EVMScriptFactory smart contracts

Initially, five EVMScriptFactory contracts will represent five Easy Track motion types.

  1. IncreaseNodeOperatorStakingLimit - Easy Track motion to increase Node Operator's staking limit.
  2. TopUpLegoProgram - Easy Track motion to allocate funds into LEGO program.
  3. AddRewardProgram - Easy Track motion to add a new reward program into the roaster of active Lido reward programs.
  4. RemoveRewardProgram - Easy Track motion to remove an existing reward program from the roaster of active Lido reward programs.
  5. TopUpRewardProgram - Easy Track motion to allocate funds into one or multiple existing active Lido reward programs.

IEVMScriptFactory interface

The EVM scripts to enact motions are generated by Easy Track type-specific EVMScriptFactory contracts. Each of them implements an interface to create the script, i.e. IEVMScriptFactory. The only method of this interface is createEVMScript(). It generates an EVM Script using the arguments passed. The method can also run checks and validations before generating the script, and it reverts the transaction in case some requirements have not been fulfilled.

IncreaseNodeOperatorStakingLimit script factory contract

IncreaseNodeOperatorStakingLimit contract creates EVM scripts to increase node operator's staking limit. Requires permissions to call setStakingLimit() method on NodeOperatorsRegistry contract. To successfully complete the EVM script generation, the following requirements must be met:

  • reward address of the node operator matches the address of the caller;
  • Node Operator is not disabled;
  • the new staking limit is greater than the current staking limit;
  • total amount of signing keys submitted is less than or equal to the new staking limit.

TopUpLegoProgram script factory contract

TopUpLegoProgram contract creates EVM Script to top up the address of the LEGO program. Allows transferring various ERC20 tokens and ETH.

AddRewardProgram script factory contract

AddRewardProgram contract creates EVM Script to add new reward program address to RewardProgramsRegistry. RewardProgramsRegistry contract is an additional contract storing a whitelist of allowed reward program addresses. To successfully complete the EVM script generation, the following requirements must be met:

  • RewardProgramsRegistry doesn’t already contain reward program address.

RemoveRewardProgram script factory contract

RemoveRewardProgram contract creates EVM Script to remove an existing reward program address from RewardProgramsRegistry. To successfully complete the EVM script generation, the following requirements must be met:

  • RewardProgramsRegistry already contains the reward program address.

TopUpRewarProgram script factory contract

TopUpRewarProgram contract creates EVM Script to top up balances of reward programs. Addresses to be topped up are restricted to the list stored in the RewardProgramsRegistry contract.

EVMScriptExecutor contract

The EVM scripts generated by the script factory contracts can be executed by a separate EVMScriptExecutor contract. It implements only executeEVMScript() method and accepts scripts built following the Aragon's EVM script structure. Current implementation uses CallsScript.sol contract of the Aragon framework.

Roles management and connection to existing Aragon setup

To enable some Easy Track types, specific roles should be granted to the EVMScriptExecutor contract.

  • SET_NODE_OPERATOR_LIMIT_ROLE required to enable increase staking limits Easy Track type;
  • CREATE_PAYMENTS_ROLE required to enable funds allocation Easy Track types (top up LEGO program/reward programs) Granting and revoking the said roles can only be done via Aragon voting.

Security and sanity checks

The proposed Easy Track Motions design involves timelock as a native security feature. Any suspicious motion can be rejected or canceled within a relatively long motion duration period. To prevent malicious actions, we propose putting the following additional limitations in place (numeric values fixed based on community feedback from v1):

  • It should be impossible to set objections threshold at more than 5% of the total LDO supply. Nevertheless, the default objections threshold should be set a lot lower at 0.5% of the total LDO supply.
  • It should be impossible to set motion duration at less than 48 hours. For any motion, there should be enough time for DAO to submit objections and reject the motion.
  • It should be impossible to spam motions. The default limit for simultaneously active motions will be set at 12 and it can only be increased by the DAO to up to 24 motions at a time. This value refers to total number of active motions of all types.
  • Pause lever should be added. When Easy Track is paused, it's impossible to start new motions or enact any of the ongoing ones, while it is still possible to submit objections. It is proposed to set up an Easy Track security multi-sig to pause Easy Track in case of emergency. If paused, Easy Track can be unpaused by Aragon voting.

Copyright

Copyright and related rights waived via CC0.