Lido, Rocket Pool team members argue over decentralization

A squad subordinate for Lido has accused rival Rocket Pool of being excessively centralized successful a July 4 societal media post. Both Lido and Rocket Pool are liquid staking protocols that let users to delegate their cryptocurrency to validators and person derivative tokens successful exchange.

According to the station from Lido's assemblage staking pb Dmitry Gusakov, the Rocket Pool contracts are controlled by the Rocket Pool team, allowing the squad to alteration immoderate parameters and telephone immoderate method. This means that Rocket Pool developers tin summation the ostentation complaint to an arbitrarily ample percent oregon summation fees to up to 100%.

Gusakov claimed this vulnerability does not beryllium successful Lido’s contracts, arsenic successful Lido, these actions are “fully controlled by [decentralized autonomous organization] LidoDAO.”

Rocket Pool Grants Management Committee subordinate Waq responded to the accusation, stating that the vulnerability was already known to the squad and volition beryllium fixed successful the future. Waq accused the Lido squad of trying to instrumentality recognition for discovering an contented that was already known.

Here we spell again with the "brand new" discoveries of @Rocket_Pool being ace malicious again Not a azygous connection of however the assemblage has been moving for implicit a twelvemonth connected fixing this and the advancement we're making. Once we hole this, they'll unreserved to instrumentality the recognition similar always.

— Waq | Rocket Fuel (@waqwaqattack) July 4, 2023

According to Gusakov's post, the RocketStorage declaration astatine Ethereum code 0x1d8f8f00cfa6758d7bE78336684788Fb0ee0Fa46 contains a parameter called “guardian.” Many functions successful Rocket Pool contracts are besides labeled arsenic “onlyGuardian,” meaning they tin lone beryllium called by the relationship listed successful this parameter, which is presently acceptable to the RocketPool deployer relationship astatine 0x0cCF14983364A7735d369879603930Afe10df21e.

Actions that tin beryllium performed by the “guardian” see changing the “RPL InflationIntervalRate” and the “ETH DepositFee,” implying that the squad tin summation the ostentation complaint of the Rocket Pool governance token (RPL) oregon region users’ deposits by mounting the interest to 100%, Gusakov stated.

Content creator Chris Blec shared the post, claiming that it proves “‘pDAO is not a DAO” oregon that RPL token-holders are not really successful power of Rocket Pool’s governance.

In response, RocketPool assemblage advocator Jasper.lens stated that the assemblage is already alert of this centralization issue, which volition beryllium patched successful the upcoming Saturn upgrade. According to Jasper, the centralization occurred during a play erstwhile voting systems for Rocket Pool’s DAO were inactive being designed and tested. The squad decided to not let the DAO to signifier on-chain voting successful the archetypal investigating phase. However, investigating has present been completed, and the upcoming Saturn upgrade “is each astir patching the decentralization holes.”

In a remark agreeing with Jasper.lens’ post, Waq claimed that the Rocket Pool assemblage “has been moving for implicit a twelvemonth connected fixing this” and predicted the Lido squad would “rush to instrumentality the recognition similar always” erstwhile the occupation is fixed.

Liquid staking protocols person been increasing successful popularity implicit the past fewer months. On May 1, blockchain analytics level DefiLlama stated that these protocols person surpassed decentralized exchanges arsenic the apical DeFi class successful presumption of full worth locked. On May 30, Tenet partnered with LayerZero to implement liquid staking connected much blockchains successful the future.