In collaboration with Lido and Polygon teams, Shard Labs announces a proposal to bring MATIC liquid staking to Polygon.

We propose to adopt the existing Lido solution, upgrade it to work with MATIC, and provide additional value to both MATIC and LDO token holders.

Timeline and Future Work

• Phase 1: Research and specification [Jul-Aug 2021]
• Phase 2: MVP Development and testnet deployment [Jul - August 2021] Phase 3: Production v1 development and audit [August 2021 - December 2021]
• Phase 3: Mainnet deployment of v1 [January 2022]
• Phase 4: Maintenance and support for v1 and planning for v2

Suggested Incentive Structure

It is a great challenge, but also an opportunity to build a Lido solution for the Polygon ecosystem. We are determined to put our best resources into this project to make it the best possible and grow the dedicated team and the project itself in the future.

We are proposing the following incentive structure that aligns with the long-term success of the Lido as well as Lido on Polygon:

• Lido Token Incentives: Using vested tokens distributed according to agreed milestones
• Revenue Share: Agreed ongoing revenue share between Shard Labs and the Lido

For delivering liquid staking solution we propose the following:

• 100,000 LDO tokens issued with vesting with 2 year vesting when Lido for Polygon manages to capture 2.5% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2 year vesting when Lido for Polygon manages to capture 3% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2 year vesting when Lido for Polygon manages to capture 3.5% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2 year vesting when Lido for Polygon manages to capture 4% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2 year vesting when Lido for Polygon manages to capture 4.5% of the staked MATIC supply
• 500,000 in additional LDO tokens vesting over a 2 year when Lido for Polygon manages to capture 20% of the staked MATIC supply

Revenue share incentives between Lido and Shard Labs: will be used to incentivize future growth and cover development and maintenance costs. As the lead development partner of Lido on Polygon, we suggest that Shard Labs receives 20% of the fee going to the Lido treasury, while the treasury itself retains the rest.

If the agreed KPIs are not reached, but the product is developed and delivered, we suggest the compensation of 100,000 $ to cover the basic development and audit costs.

Note: each point will have to be reached and maintained for a month for the milestone to be achieved. For example if Lido reaches 2.5% MATIC supply and maintains it for a month, then milestone 1 is achieved, not before.