Dear Lido Team,
The SSV Grants Committee has reviewed your request regarding the Simple DVT Expansion under point 1 of the proposal particulars.
We are pleased to inform you that we will present Lido with a grant and a maximum budget of 4830 SSV Tokens to secure the runway of the assumed 36 clusters running 80 validators and 5 clusters running 500 validators with reasonable deviation allowed. The budget is allocated from the existing grants budget and in accordance with the new grants strategy, and it shall guarantee a runway of 12 months once the program has started and the first funding has been made.
This grant will be issued under the terms and mechanics of the first grant, and SSV DAO member @EridianAlpha will continue to administer the program. Due to the similarity of both grants, there might be an overlap in budget allocations. Both budgets shall be seen as one and support the activities according to this proposal.
Due to the on-ramp phase, program changes, network dynamics, and network parameters, it is impossible to estimate the exact demand for funding over one year. Therefore, the grants committee ran several simulations, including a buffer, to estimate the demand.
Average Network Fee based on expected case simulations: 0.72 SSV/year
* 36 clusters * 80 validators * 0.72 SSV = 2,244.03 SSV
* 5 clusters * 500 validators * 0.72 SSV = 1,947.95 SSV
* +15% buffer
**Total SSV/Year = ~4830 SSV**
Please note that this is the maximum amount to be spent. If the actual demand is lower (expected case), the remaining SSV will be returned to the DAO’s Grant Budget. Neither Lido nor SSV have control over the Lido Simple DVT SSV cluster multisigs, so there is a possibility that the SSV in a cluster is lost, unrecoverable, or misappropriated. To minimize the risk of these undesirable situations occurring, the SSV balance of each cluster should be maintained at a minimal required balance given these possible outcomes. The Lido and SSV administrators are authorized to define the mechanics that best suit the Lido Simple DVT program.
As for point 2 of the proposal particulars, the current incentivized mainnet program needs to define an exception to support Lido’s Distributed Validators Vault. For this, a DAO vote is required. The proposal draft process has started and is expected to hit the forum next week.
We look forward to a successful collaboration.
Best regards,
SSV Grants Committee