The future of SharedStake
So we got rugged. Now what?
Back in June, a SharedStake insider rugged the project.
SGT Rugpull — Post mortem
This is a postmortem, timeline of events, and reasoning behind actions written by Chimera. This discusses the…
This article will explore where we go from here and outline our roadmap to recovery.
What important to keep in mind is the size of the rug-pull.
The bad actor got away with $128k.
This represents 1.7% of our peak SGT liquidity of $8M or ~10% of the liquidity at the time of around $1.4M.
Due to decisions we’d made such as time-locking half the rewards, and quick actions taken by Chimera to warn users to pull liquidity and defensively removing any liquidity, the overall fallout was limited.
The 16k ETH staked via SharedStake for validators is still safe and validators continue to work as expected. Performance can be queried here: https://beaconcha.in/blocks?q=SharedStake.org%20Prysm%20AWS-ohio
We are confident we can recover from this, and your ETH is still safe and earning interest.
SharedStake is currently the 4th largest ETH2 pooled staking provider.
So we need to regain trust, and move to be more trust-less and decentralized. While improving capital efficiency. Additionally we have features under development that we are almost ready to launch and for some we need input from the community on.
Here is our current proposals for the future:
- Create a multi-sig with known doxxed community members and partner protocols such as Saddle ✅
- Return 101 vETH2 + $60k USDC that was saved from the rug-pull to LPs at the time ✅
- Change ownership of the SharedDeposit contract, capable of minting vETH2 to the multi-sig ✅
- Deliver a dashboard to make reward accumulation clear for ETH2 stakers
- Increase capital efficiency by pruning down staff hired into core-team and reducing marketing spread
Governance and farming rewards
- Relaunch a governance token for further incentivizing core protocol features such as:
1. Liquidity on Saddle or other stable swap protocols
2. Lending on Ruler/Rari or other protocols
3. Governance token liquidity
4. Voting on snapshot pages
This token will be airdropped to previous token holders & LPs.(This statement is no longer correct. We realized we didn’t have the manpower to calculate an airdrop and have decided to allow users that care to migrate using a migration contract. More recent details and reasoning here: https://medium.com/@chimera_defi/sharedstake-governance-v2-a02870fd3f24)
Kairos has a lot of unspecified sends from his deployer address. Since we cannot be sure they’re not just his own accounts, all unspecified sends will be excluded.
- Revisit tokenomics for shorter experiment timeframes based on this: https://www.mechanism.capital/native-token-liquidity/
- Vest treasury alongside farming and founder rewards to prevent over paying contributors or hiring too fast
- Launch a vote escrow mechanism based on Curve/Iron Finance/Pickle to improve governance incentive structure and make it easier to maintain snapshot settings
- Token value accrual mechanisms via benefits for vote-escrowed token holders such as protocol fee sharing, reward boosts, and fee rebates
- New farming contract to remove the need for user migrations and allow multiple rewards for fee sharing
- Launch multi-chain farming, expanding first to Polygon to allow smaller players to farm
Core protocol upgrades for ETH staking via SharedDeposit
- Launch a new SharedDeposit v2 contract to control vETH2 and allow exits at merge [More details to come in a protocol upgrade article]
- Launch a new SharedDeposit v3 with built in security guarantees such as a pre-specified ETH1 withdrawal address, which wasn't possible when we launched
- A dead-mans switch in case something happens to me while I’m in control of the validators
- If possible, rotate withdrawal keys on the validators via ETH2 #2149 to an ETH1 contract
- If needed, explore sharded withdrawal key generation using doxxed community members or multisig participants using a n of k Shamir’s secret sharing scheme such as the Stakewise BLS Horcrux
- If possible, create a ETH1 exit contract following this Eth research article https://ethresear.ch/t/0x03-withdrawal-credentials-simple-eth1-triggerable-withdrawals/10021/4
- Implement and launch a Solo staking pool allowing users to create their own withdrawal key and stake with it
- Implement a block-list to prevent known malicious addresses from interacting with the protocol
- Prevent smart contracts from interacting to close arbitrage issue where exit pool liquidity is instantly drained
As always, I am open for questions: