Lido WC update: Node Operator's perspective

Timespan: Jul 12—Jul 16, 2021.

Summary

• Lido DAO is going to change withdrawal credentials (WC) so that they point to an upgradeable smart contract instead of a BLS key. This will allow for more decentralization as withdrawal logic will be controlled by LDO holders via DAO voting instead of withdrawals being initiated by holders of BLS key parts.
• The change is going to take place on the week of 12.07–19.07.2021.
• The already submitted but unused deposit data will be pruned.
• Lido team will provide you the list and the starting index of these pruned deposit data and propose the DAO to compensate the gas fees paid for submitting them.
• You will need to generate a new chunk of deposit data using the new withdrawal credentials. You may reuse the validator keys that were used in the pruned deposit data, but you'll still need to re-generate deposit data since it includes WC and will require re-signing after the WC change.

Changes required

You'll need to start using the WC with the new 0x1 withdrawal prefix for generating new deposit data. This is already supported by the official ETH2 deposit CLI using the eth1_withdrawal_address argument.

If you're not re-using the pruned validator keys when generating new deposit data, you'll need to exclude them from monitoring and operations.

Key dates

Monday, Jul 12

3:00 PM UTC: new WC are generated and published. Please validate them and make sure you're able to generate a new chunk of deposit data using the new WC. We'll ask you to generate test deposit data.

UPD. The withdrawal credentials thus is the following byte sequence as per the ETH2.0 specification:
010000000000000000000000b9d7934878b5fb9610b3fe8a5e441e8fad7e293f

Wednesday, Jul 14

7:00 AM UTC: an onchain vote for WC change is started.

Thursday, Jul 15

9:00 AM UTC: the vote for WC change is executed. All validator keys that are not used by that moment are removed from the protocol. Lido team provides a list of validator keys that were removed, as well as their starting index.

Please submit new deposit data till 3:00 PM UTC. You'll have 6 hours.

3:00 PM UTC: an onchain vote is started for raising validator key limits for those node operators that have submitted new deposit data on this day.

Friday, Jul 16

4:00 PM UTC: the vote for raising validator key limits is executed and buffered Ether is deposited using the new deposit data.

Action items

TODO	From	Till
Generate test deposit data using the new WC. Make sure your infrastructure supports the new setup	Monday, Jul 12, 3:00 PM UTC	Thursday, Jul 15, 9:00 AM UTC
Generate and submit final deposit data using the new WC	Thursday, Jul 15, 9:00 AM UTC	Thursday, Jul 15, 3:00 PM UTC.
If you're not reusing the removed validator keys: exclude the removed keys from monitoring and operations	Thursday, Jul 15, 9:00 AM UTC	Friday, Jul 16, 4:00 PM UTC