Lido, Rocket Pool team members debate decentralization

Have a team member for Lido accused A July 4 social media post accused competing Rocket Pool of being overly centralized. Lido and Rocket Pool are both Liquid staking protocols that allow users to stake their cryptocurrencies to validators and receive derivative tokens in return.

According to a post by Dmitry Gusakov, head of community for Lido, Rocket Pool contracts are controlled by the Rocket Pool team, allowing the team to change any parameter and call any method. This means that Rocket Pool developers can increase the inflation rate to arbitrarily large percentages or increase fees by as much as 100%.

Gusakov claimed that this vulnerability does not exist in Lido’s contracts, as in Lido these actions are “fully controlled by (decentralized autonomous organization) LidoDAO.”

Waq, a member of the Rocket Pool grant management committee, responded to the allegation, saying that the team was already aware of the vulnerability and would fix it in the future. Waak accused the Lido team of trying to take credit for discovering an issue that was already known.

Here we come again with “brand new” discoveries @rocket_pool Again being highly malicious, not a word has been said about how the community has been working for over a year to fix this and what progress we are making. Once we fix it, they’ll rush to take credit as usual.

– Waq | Rocket Fuel (@waqwaqatack) 4 July 2023

According to Gusakov’s post, the RocketStorage contract at the ethereum address 0x1d8f8f00cfa6758d7bE78336684788Fb0ee0Fa46 includes a parameter called “guardian”. Several functions in the RocketPool contract are also labeled as “onlyguardian”, meaning they can only be called by the account listed in this parameter, which is currently set to 0x0cCF14983364A7735d369879603930Afe10df21e on the RocketPool Deployer account.

Actions that can be taken by the “Guardian” include changing the “RPL Inflation Interval Rate” and “ETH Deposit Fee”, which means that the team can increase or decrease the inflation rate of the Rocket Pool Governance Token (RPL) by setting Can withdraw the deposit amount of Rs. Fee 100%, said Gusakov.

Content creator Chris Blake shared the post, claim of This proves that “‘pDAO is not a DAO” or that RPL token holders are not actually in control of Rocket Pool’s administration.

In response, the Rocketpool community advocates for jasper.lens where did it go The community is already aware of this centralization issue, which will be fixed in an upcoming Saturn upgrade. According to Jasper, the centralization occurred during a period when the voting systems for Rocket Pool’s DAO were still being designed and tested. The team decided not to allow The DAO to practice on-chain voting in the initial testing phase. However, testing is now complete, and the upcoming Saturn upgrade is “about fixing the decentralization holes.”

In a comment agreeing with jasper.lens’s post, Claimed The Rocket Pool community has been “working for over a year to fix this” and predicted that the Lido team will “run to take the credit as usual” once the problem is fixed.

Liquid staking protocols have been growing in popularity over the past few months. On May 1, blockchain analytics platform DefiLlama said that these protocols have overtaken decentralized exchanges as the top DeFi category in terms of total value locked. On May 30, Tenet partnered with LayerZero to implement Liquid Staking on more blockchains in the future.