Proposal for dForce-Aspida LSD Vault

Governance Proposals
#1

Summary:
This proposal is seeking dForce community’s feedback of collaboration with Aspida protocol on Arbitrum by building a joint vault to leverage its STIP incentives for boosting dForce’s LSD TVL.

Background: dForce’s STIP for LSD adoption

First off, congratulations to dForce for obtaining Arbitrum’s STIP grant, which seeks to incentivize adoption for a diverse range of LSD assets across dForce’s netwoks, such as wstETH, on the Arbitrum network. These assets serve as collateral supplied to dForce Lending & Vaults which will add diversity to Arbitrum’s LSD ecosystem.
ref link: [dForce] [FINAL] [ STIP - Round 1] - Incentive Framework (Round 1) - Arbitrum

The primary objective is to add diversity to Arbitrum’s LSD markets by supporting of LSD asset. As an example, the recent approval by dForce DAO to incorporate Rocket Pool’s rETH as collateral on Arbitrum is a strategic step. This decision is intended to empower users by offering a selection of LSD assets (like wstETH), allowing them to align their investment strategies more effectively. Furthermore, this initiative aims to enhance liquidity for various LSD assets throughout the Arbitrum ecosystem, contributing to its overall resilience and versatility.

The collaboration between dForce and Aspida signifies a concerted effort to facilitate support for diverse LSD assets like wstETH on the Arbitrum platform. Aspida, a prominent LSD protocol, serves as the collateral assets supplied to dForce Lending & Vaults.

Who is aspida:
Aspida: An Efficient and Secure Liquid Staking Protocol
Aspida is an efficient liquid staking protocol that offers a decentralized, secure, and highly compatible staking service and LSD assets. By leveraging the power of liquid staking, Aspida allows users across different layers and networks to earn profitable rewards while maintaining the flexibility to participate in multiple staking opportunities.
Links:

Proposal Specification:
Benefits:
The proposal aims to elevate dForce’s LSD asset TVL (wstETH), facilitate multiple revenue streams for dForce, and expand users’ stablecoin utility and protocol revenue.
We aim to help dForce to add diversity to Arbitrum’s LSD ecosystem by supporting LSD assets like Aspida. Enhancing dForce’s collaboration with Aspida protocol by joint incentive, and onboarding more new users to dForce and Arbitrum.
Collaboration with dForce is geared towards allocating ASP tokens to early stakers in an upcoming airdrop event. This initiative not only empowers users with more lucrative incentives but also initiates early TVL establishment, enhancing user benefits and bolstering Aspida’s brand visibility and liquidity on the Arbitrum platform
User Motivation
By participating in the vaults, user can earn multiple stream of rewards (arb, ASP reward points)
Distributing ASP reward points to stakers grants them opportunities in future airdrops, providing governance rights within the upcoming Aspida DAO governance. This not only enhances their involvement but also augments their understanding and awareness of the Aspida protocol.
A robust TVL not only strengthens Aspida’s integration with other DeFi protocols but also broadens the utility of Aspida LST across various scenarios. This development significantly enhances the practical value and broad applicability of the Aspida protocol.
Specification

  1. Establishment of dForce & Aspida Vault
    Users can pre-deposit wstETH and ETH to participate in Aspida pre-mining and earn Aspida incentive points.
  • Incentives: ARB from dForce STIP program plus Aspida’s reward points.
  • Capacity: 50,000 ETH
  1. Activity divided into two phases: Pre-Deposit & Lock-up Period

When: 4 weeks before the Aspida Arbitrum Mainnet Launch
Phase 1: Pre-Deposit Period
Duration: 4 weeks
Mechanism: Users can deposit and withdraw wstETH or ETH at will, earning dForce’s ARB incentives and Aspida points.

Phase 2: Lock-up Period
Duration: 2 weeks
Mechanism: Users’s depoist (wstETH, ETH) will be locked during this phase and converted in sdETH (Aspida’s staking ETH asset) on Arbitrum at prevaling market exchange rate, users will be able to claim an equivalent amount of sdETH and receive dForce’s ARB rewards plus Aspida points.
Specific allocation of ARB and reward points across the two stages are to be discussed with dForce’s team.

Why Aspida?
Aspida is a new LSD protocol with strong incentive to encourage early participation; it already carried out one major audit (report to be published) and bug bounty to be announced.

Aspida initially focus on ETH asset, but will expend to other asset; Collaborating with Aspida earlier, will allow dForce’s users to gain substantial upside once network is launched.

Aspida collaboration can be extended to protocol-level integration, including collateral and vault support and Aspida will provide liquidity bootstrapping for dForce’s stablecoin USX and its lending protocol Unitus Finance.

1 Like
dForce Unveils a 1M ARB Liquidity Mining Initiative on Arbitrum!
#2

Thanks for your proposal. It would be great to share more on the tech side as well as the bootstrapping strategy of sdETH:

  1. Where can I see the performance of Aspida validators?

  2. Please elaborate on sdETH’s liquidity strategy and oracle solution.

  3. Also, how long does it require to facilitate redemption of sdETH when users try to exit from staking?

  4. How much does Aspida charge for fees?

1 Like
#3

Q1：Where can I see the performance of Aspida validators?

A1: We will introduce a dedicated Validators Dashboard, which will display the real-time network status of all the validators. This feature is expected to be launched synchronously during the vault campaign (lock-up stage), enhancing transparency and monitoring efficacy.

Q2： Please elaborate on sdETH’s liquidity strategy and Oracle solution.

A2：

Lliquidity strategy:
After the campaign, users can easily convert their sdETH back to the Ethereum network and exchange them to ETH. Additionally, we are planning collaborations with other DEX protocols on the Arbitrum network to enhance sdETH’s liquidity by providing incentive of ETH&sdETH pairs.

Oracle solution:

On the Layer 2, in the vault campaign stage, oracle is not needed and not deployed.

As we are not integrated with other DeFi protocols like lending protocols and CDPs on Layer 2, we will not deploy Oracle services in the short term. In the future,we may deploy the oracle service via providers like Chainlink.

On the Ethereum mainnet, our Oracle system is responsible for managing nodes (including entry and exit mechanisms) and distributing incentives, primarily achieved through three core components: Smart Contracts, Accounting, and the Ejector mechanism.

Q3： Also, how long does it require to facilitate redemption of sdETH when users try to exit from staking?

A3：Approximately 7 days basing on Arbitrum official bridgewith safe transformation time.

When users wish to exit staking and redeem their sdETH, they will need to transfer their sdETH from the Arbitrum network back to the Ethereum mainnet in the first place. Next, they can unstake on the Aspida protocol. This process is entirely dependent on the Aspida’s choice of cross-chain bridge selection, and basing on the current processing time of the Arbitrum official bridge, the entire transfer is expected to take approximately 7 days.

Q4：How much does Aspida charge for fees?

A4：2% of staking rewards in the joint vault campaign.

Normally, Aspida charges 5% of staking rewards as fee. To encourage new users to join the vault, the fee is reduced to 2% as part of incentives.