Lido Oracle

Oracle daemon for Lido decentralized staking service: Monitoring the state of the protocol across both layers and submitting regular update reports to the Lido smart contracts.

How it works

There are 3 modules in the oracle:

Accounting
Ejector
CSM

Accounting module

Accounting module updates the protocol TVL, distributes node-operator rewards, updates information about the number of exited and stuck validators and processes user withdrawal requests. Also Accounting module makes decision to turn on/off the bunker.

Flow

The oracle work is delineated by time periods called frames. Oracles finalize a report in each frame. The default Accounting Oracle frame length on mainnet is 225 epochs, which is 24 hours (it could be changed by DAO). The frame includes these stages:

Waiting - oracle starts as daemon and wakes up every 12 seconds (by default) in order to find the last finalized slot (ref slot). If ref slot missed, Oracle tries to find previous non-missed slot.
Data collection: oracles monitor the state of both the execution and consensus layers and collect the data;
Hash consensus: oracles analyze the data, compile the report and submit its hash to the HashConsensus smart contract;
Core update report: once the quorum of hashes is reached, meaning required number of Oracles submitted the same hash, one of the oracles chosen in turn submits the actual report to the AccountingOracle contract, which triggers the core protocol state update, including the token rebase, finalization of withdrawal requests, and deciding whether to go in the bunker mode.
Extra data report: an third phase report carrying additional information. It can be delivered multi-transactionally. Delivers stuck and exited validators count by node operators. For some modules unlocks rewards distribution.

Ejector module

Ejector module requests Lido validators to eject via events in Execution Layer when the protocol requires additional funds to process user withdrawals.

Flow

Finds out how much ETH is needed to cover withdrawals.
Predicts mean Lido income into Withdrawal and Execution Rewards Vaults.
Figures out when the next validator will be withdrawn.
Form a validator's queue with enough validators to fill all withdrawals requests.
Force eject validators from Node Operator with boosted exits flag even no withdrawal requests.
Encode validators data and send transaction

Usage

Machine requirements

Only Oracle:

vCPUs - 2
Memory - 8 GB

Oracle + KAPI:

vCPU - 4
Memory - 16 GB

Dependencies

Execution Client Node

To prepare the report, Oracle fetches up to 10 days old events, makes historical requests for balance data and makes simulated reports on historical blocks. This requires an archive execution node. Oracle needs two weeks of archived data.

Client	Tested	Notes
Geth	🟢	`--gcmode=archive` `--syncmode=snap` OR `--gcmode=archive` `--syncmode=full`
Nethermind	🔴	Not tested yet
Besu	🟢	Use `--rpc-max-logs-range=100000` `--sync-mode=FULL` `--data-storage-format="FOREST"` `--pruning-enabled` `--pruning-blocks-retained=100000` params
Erigon	🟢	Use `--prune=htc` `--prune.h.before=100000` `--prune.t.before=100000` `--prune.c.before=100000` params

Consensus Client Node

Also, to calculate some metrics for bunker mode Oracle needs archive consensus node.

Client	Tested	Notes
Lighthouse	🟢	Use `--reconstruct-historic-states` param
Lodestar	🔴	Not tested yet
Nimbus	🔴	Not tested yet
Prysm	🟢	Use `--grpc-max-msg-size=104857600` `--enable-historical-state-representation=true` `--slots-per-archive-point=1024` params
Teku	🟢	Use `--data-storage-mode=archive` `--data-storage-archive-frequency=1024` `--reconstruct-historic-states=true` params

Keys API Service

This is a separate service that uses Consensus and Execution Clients to fetch all lido keys. It stores the latest state of lido keys in database.

Lido Keys API repository.

Setup

Oracle daemon could be run using a docker container. Images is available on Docker Hub. Pull the image using the following command:

docker pull lidofinance/oracle:{tag}

Where {tag} is a version of the image. You can find the latest version in the releases OR
You can build it locally using the following command (make sure build it from latest release):

docker build -t lidofinance/oracle .

Full variables list could be found here.

Checks before running

Use .env.example file content to create your own .env file. Set required values. It will be enough to run the oracle in check mode.
Check that your environment is ready to run the oracle using the following command:
```
docker run -ti --env-file .env --rm lidofinance/oracle:{tag} check
```
If everything is ok, you will see that all required checks are passed and your environment is ready to run the oracle.

Run the oracle

By default, the oracle runs in dry mode. It means that it will not send any transactions to the Ethereum network. To run Oracle in production mode, set MEMBER_PRIV_KEY or MEMBER_PRIV_KEY_FILE environment variable:
```
MEMBER_PRIV_KEY={value}
```
Where {value} is a private key of the Oracle member account or:
```
MEMBER_PRIV_KEY_FILE={path}
```
Where {path} is a path to the private key of the Oracle member account.
Run the container using the following command:
```
docker run --env-file .env lidofinance/oracle:{tag} {type}
```
Replace {tag} with the image version and {type} with one of the two types of oracles: accounting or ejector.

Note: of course, you can pass env variables without using .env file. For example, you can run the container using the following command:
docker run --env EXECUTION_CLIENT_URI={value} --env CONSENSUS_CLIENT_URI={value} --env KEYS_API_URI={value} --env LIDO_LOCATOR_ADDRESS={value} lidofinance/oracle:{tag} {type}

Manual mode

Oracle could be executed once in "manual" mode. To do this setup DAEMON variable to 'False'.

Note: Use -it option to run manual mode in Docker container in interactive mode. Example docker run -ti --env-file .env --rm lidofinance/oracle:{tag} {type}

In this mode Oracle will build report as usual (if contracts are reportable) and before submitting transactions Oracle will ask for manual input to send transaction.

In manual mode all sleeps are disabled and ALLOW_REPORTING_IN_BUNKER_MODE is True.

Env variables

Name	Description	Required	Example value
`EXECUTION_CLIENT_URI`	URI of the Execution Layer client	True	`http://localhost:8545`
`CONSENSUS_CLIENT_URI`	URI of the Consensus Layer client	True	`http://localhost:5052`
`KEYS_API_URI`	URI of the Keys API	True	`http://localhost:8080`
`LIDO_LOCATOR_ADDRESS`	Address of the Lido contract	True	`0x1...`
`CSM_MODULE_ADDRESS`	Address of the CSModule contract	CSM only	`0x1...`
`MEMBER_PRIV_KEY`	Private key of the Oracle member account	False	`0x1...`
`MEMBER_PRIV_KEY_FILE`	A path to the file contained the private key of the Oracle member account. It takes precedence over `MEMBER_PRIV_KEY`	False	`/app/private_key`
`GW3_ACCESS_KEY`	An access key to gw3.io IPFS provider	CSM only	`123456789-1234-5678-9012-123456789012`
`GW3_ACCESS_KEY_FILE`	A path to a file with an access key to gw3.io IPFS provider	CSM only	`/app/gwt_access`
`GW3_SECRET_KEY`	A secret key to gw3.io IPFS provider	CSM only	`aBcD1234...`
`GW3_SECRET_KEY_FILE`	A path to a file with a secret key to gw3.io IPFS provider	CSM only	`/app/gwt_secret`
`PINATA_JWT`	JWT token to access pinata.cloud IPFS provider	CSM only	`aBcD1234...`
`PINATA_JWT_FILE`	A path to a file with a JWT token to access pinata.cloud IPFS provider	CSM only	`/app/pintata_secret`
`FINALIZATION_BATCH_MAX_REQUEST_COUNT`	The size of the batch to be finalized per request (The larger the batch size, the more memory of the contract is used but the fewer requests are needed)	False	`1000`
`EL_REQUESTS_BATCH_SIZE`	The amount of entities that would be fetched in one request to EL	False	`1000`
`ALLOW_REPORTING_IN_BUNKER_MODE`	Allow the Oracle to do report if bunker mode is active	False	`True`
`DAEMON`	If False Oracle runs one cycle and ask for manual input to send report.	False	`True`
`TX_GAS_ADDITION`	Used to modify gas parameter that used in transaction. (gas = estimated_gas + TX_GAS_ADDITION)	False	`100000`
`CYCLE_SLEEP_IN_SECONDS`	The time between cycles of the oracle's activity	False	`12`
`MAX_CYCLE_LIFETIME_IN_SECONDS`	The maximum time for a cycle to continue	False	`3000`
`SUBMIT_DATA_DELAY_IN_SLOTS`	The difference in slots between submit data transactions from Oracles. It is used to prevent simultaneous sending of transactions and, as a result, transactions revert.	False	`6`
`HTTP_REQUEST_TIMEOUT_EXECUTION`	Timeout for HTTP execution layer requests	False	`120`
`HTTP_REQUEST_TIMEOUT_CONSENSUS`	Timeout for HTTP consensus layer requests	False	`300`
`HTTP_REQUEST_RETRY_COUNT_CONSENSUS`	Total number of retries to fetch data from endpoint for consensus layer requests	False	`5`
`HTTP_REQUEST_SLEEP_BEFORE_RETRY_IN_SECONDS_CONSENSUS`	The delay http provider sleeps if API is stuck for consensus layer	False	`12`
`HTTP_REQUEST_TIMEOUT_KEYS_API`	Timeout for HTTP keys api requests	False	`120`
`HTTP_REQUEST_RETRY_COUNT_KEYS_API`	Total number of retries to fetch data from endpoint for keys api requests	False	`300`
`HTTP_REQUEST_SLEEP_BEFORE_RETRY_IN_SECONDS_KEYS_API`	The delay http provider sleeps if API is stuck for keys api	False	`300`
`HTTP_REQUEST_TIMEOUT_IPFS`	Timeout for HTTP requests to an IPFS provider	False	`30`
`HTTP_REQUEST_RETRY_COUNT_IPFS`	Total number of retries to fetch data from an IPFS provider	False	`3`
`EVENTS_SEARCH_STEP`	Maximum length of a range for eth_getLogs method calls	False	`10000`
`PRIORITY_FEE_PERCENTILE`	Priority fee percentile from prev block that would be used to send tx	False	`3`
`MIN_PRIORITY_FEE`	Min priority fee that would be used to send tx	False	`50000000`
`MAX_PRIORITY_FEE`	Max priority fee that would be used to send tx	False	`100000000000`
`CSM_ORACLE_MAX_CONCURRENCY`	Max count of dedicated workers for CSM module	False	`2`
`CACHE_PATH`	Directory to store cache for CSM module	False	`.`

Mainnet variables

LIDO_LOCATOR_ADDRESS=0xC1d0b3DE6792Bf6b4b37EccdcC24e45978Cfd2Eb ALLOW_REPORTING_IN_BUNKER_MODE=False

Alerts

A few basic alerts, which can be configured in the Prometheus Alertmanager.

groups:
  - name: oracle-alerts
    rules:
      - alert: AccountBalance
        expr: lido_oracle_account_balance / 10^18 < 1
        for: 10m
        labels:
          severity: critical
        annotations:
          summary: "Dangerously low account balance"
          description: "Account balance is less than 1 ETH. Address: {.labels.address}: {.value} ETH"
      - alert: OutdatedData
        expr: (lido_oracle_genesis_time + ignoring (state) lido_oracle_slot_number{state="head"} * 12) < time() - 300
        for: 1h
        labels:
          severity: critical
        annotations:
          summary: "Outdated Consensus Layer HEAD slot"
          description: "Processed by Oracle HEAD slot {.value} too old"

Metrics

Note: all metrics are prefixed with lido_oracle_ by default.

The oracle exposes the following basic metrics:

Metric name	Description	Labels
build_info	Build info	version, branch, commit
env_variables_info	Env variables for the app	ACCOUNT, LIDO_LOCATOR_ADDRESS, CSM_MODULE_ADDRESS, FINALIZATION_BATCH_MAX_REQUEST_COUNT, EL_REQUESTS_BATCH_SIZE, MAX_CYCLE_LIFETIME_IN_SECONDS
genesis_time	Fetched genesis time from node
account_balance	Fetched account balance from EL	address
slot_number	Last fetched slot number from CL	state (`head` or `finalized`)
block_number	Last fetched block number from CL	state (`head` or `finalized`)
functions_duration	Histogram metric with duration of each main function in the app	name, status
el_requests_duration	Histogram metric with duration of each EL request	endpoint, call_method, call_to, code, domain
cl_requests_duration	Histogram metric with duration of each CL request	endpoint, code, domain
keys_api_requests_duration	Histogram metric with duration of each KeysAPI request	endpoint, code, domain
keys_api_latest_blocknumber	Latest block number from KeysAPI metadata
transactions_count	Total count of transactions. Success or failure	status
member_info	Oracle member info	is_report_member, is_submit_member, is_fast_lane
member_last_report_ref_slot	Member last report ref slot
frame_current_ref_slot	Current frame ref slot
frame_deadline_slot	Current frame deadline slot
frame_prev_report_ref_slot	Previous report ref slot
contract_on_pause	Contract on pause

Special metrics for accounting oracle:

Metric name	Description	Labels
accounting_is_bunker	Is bunker mode enabled
accounting_cl_balance_gwei	Reported CL balance in gwei
accounting_el_rewards_vault_wei	Reported EL rewards in wei
accounting_withdrawal_vault_balance_wei	Reported withdrawal vault balance in wei
accounting_exited_validators	Reported exited validators count for each operator	module_id, no_id
accounting_stuck_validators	Reported stuck validators count for each operator	module_id, no_id
accounting_delayed_validators	Reported delayed validators count for each operator	module_id, no_id

Special metrics for ejector oracle:

Metric name	Description	Labels
ejector_withdrawal_wei_amount	To withdraw amount
ejector_max_withdrawal_epoch	Max withdrawal epoch among all Lido validators on CL
ejector_validators_count_to_eject	Validators count to eject

Special metrics for CSM oracle:

Metric name	Description	Labels
TBD	TBD

Development

Python version: 3.12

Setup

Setup poetry
Install dependencies

poetry install

Startup

Required variables for accounting and ejector modules

export EXECUTION_CLIENT_URI=...
export CONSENSUS_CLIENT_URI=...
export KEYS_API_URI=...
export LIDO_LOCATOR_ADDRESS=...

Required variables for CSM module

export EXECUTION_CLIENT_URI=...
export CONSENSUS_CLIENT_URI=...
export KEYS_API_URI=...
export LIDO_LOCATOR_ADDRESS=...
export CSM_MODULE_ADDRESS=...
export MAX_CYCLE_LIFETIME_IN_SECONDS=60000  # Reasonable high value to make sure the oracle has enough time to process the whole frame.

Run oracle module

poetry run python -m src.main {module}

Where {module} is one of:

accounting
ejector
csm
check

Tests

Testing guide

poetry run pytest .

Code quality

Used the following tools:

black
pylint
mypy See the configuration for details for each linter.

Make sure that your code is formatted correctly and passes all checks:

black tests
pylint src tests
mypy src

License

2023 Lido info@lido.fi

This program is free software: you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation, version 3 of the License, or any later version.

This program is distributed in the hope that it will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for more details.

You should have received a copy of the GNU General Public License along with this program. If not, see https://www.gnu.org/licenses/.

Release flow

To create new release:

Merge all changes to the master branch
Navigate to Repo => Actions
Run action "Prepare release" action against master branch
When action execution is finished, navigate to Repo => Pull requests
Find pull request named "chore(release): X.X.X" review and merge it with "Rebase and merge" (or "Squash and merge")
After merge release action will be triggered automatically
Navigate to Repo => Actions and see last actions logs for further details

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README.md

README.md

Lido Oracle

How it works

Accounting module

Ejector module

Usage

Machine requirements

Dependencies

Execution Client Node

Consensus Client Node

Keys API Service

Setup

Checks before running

Run the oracle

Manual mode

Env variables

Mainnet variables

Alerts

Metrics

Development

Setup

Startup

Tests

Code quality

License

Release flow

Files

README.md

Latest commit

History

README.md

File metadata and controls

Lido Oracle

How it works

Accounting module

Ejector module

Usage

Machine requirements

Dependencies

Execution Client Node

Consensus Client Node

Keys API Service

Setup

Checks before running

Run the oracle

Manual mode

Env variables

Mainnet variables

Alerts

Metrics

Development

Setup

Startup

Tests

Code quality

License

Release flow