As the duties and options afforded to block proposers in Ethereum expand, the possibilities of interaction with the Lido protocol are expanded as well. In order to support broader ecosystem efforts to explore advanced block proposal activities on Ethereum, such as preconfirmations, Node Operators using the Lido protocol have new opportunities to test proposer protocols and sidecars.
The following initiatives allow operators to experiment, contribute, and prepare for future integrations with Lido’s growing infrastructure.
What are Auxiliary Proposer Mechanisms?
Auxiliary Proposer Mechanisms (APMs) are frameworks, usually consisting of processes, protocols, and software, that enable enhanced functionality compared to the default block proposal process in Ethereum. These mechanisms aim to improve various aspects of block production, such as efficiency, user experience, and network robustness, even potentially cross-chain or cross-layer communication, without fundamentally altering Ethereum’s core consensus rules. By operating in tandem with Ethereum validator infrastructure, they enable innovations like block optimization, faster confirmations, and increased censorship resistance.
APMs can be thought of as a framework for understanding and reasoning about the various mechanisms available to block proposers to enhance default block proposal functionality. A mechanism may be implemented by various different protocols, which may be enabled by various different sidecars (i.e. the relationship is 1 : n : n, although there may even be cases where sidecar enables multiple protocols.)
What’s a Mechanism
A Mechanism is a distinct objective paired with a method designed to achieve that objective within the Ethereum block proposal process.
Mechanisms outline what the objective is and how it can be achieved, providing the conceptual framework for developing protocols and sidecars. They do not prescribe a single implementation but the principles that inform the design of supporting tools.
What's a Protocol?
Protocols are structured specifications of specific block proposal (or proposal augmentation) mechanisms.
Protocols define the rules, configurations, and workflows for how a particular mechanism operates within Ethereum’s ecosystem.
They can be "in-protocol," "out-of-protocol," or a hybrid. Here, "protocol" refers specifically to interactions occurring within the Ethereum protocol, its sub-protocols and networks.
Protocols provide a standardized approach to deploying and using these mechanisms, making them accessible to node operators and developers.
What are Sidecars?
Sidecars are services or software components designed to support the functionality of a Protocol, essentially an implementation of parts of the protocol to allow agents to interact with the protocol and other agents within it.
Block proposer sidecars operate alongside the validator to perform specific tasks, provide additional services, optimizations, or data integration without altering the core validator software.
Example
A well-known example of an Auxiliary Proposer Mechanism is Proposer-Builder Separation (PBS). In the default Ethereum configuration, block proposers build blocks locally based on their view of the mempool. PBS, however, separates the tasks of building and proposing blocks into two distinct roles:
- A block builder assembles an entire block payload.
- A block proposer receives the payload and proposes it to the chain.
(Note: Some PBS implementations allow builders to submit partial payloads, which are then completed by either an intermediary builder or the proposer.)
The most widely recognized implementation of PBS is MEV Boost. MEV Boost is both a Protocol and a Sidecar, which can be confusing.
- As a Protocol, MEV Boost defines an "out-of-protocol" specification for PBS, meaning the interactions between block builders, block proposers, and relays occur outside Ethereum's core protocol.
- As a Sidecar, MEV Boost provides client-side software that block proposers run to participate in the MEV Boost Protocol. Builders, relays, and proposers use different client software to interact with this protocol.
Other implementations of sidecars for the MEV Boost Protocol include:
- Vouch, which provides a relay service.
- Commit Boost’s PBS Module.
Additionally, most Consensus Layer clients now support direct interaction with the MEV Boost Protocol, though this is not considered a sidecar and offers more limited functionality compared to MEV Boost (the Sidecar).
Another example of PBS is EIP 7732, which proposes enshrined PBS: an in-protocol implementation of PBS. Unlike MEV Boost, EIP 7732 operates entirely within the Ethereum protocol and is incompatible with the MEV Boost Protocol.
Node Operators
Getting Started
These APMs are typically tested on the Hoodi testnet to ensure stability, scalability and performance before they can be considered to be integrated into mainnet operations.
By participating, Node Operators gain early access to new features on Ethereum and contribute valuable feedback to optimize their infrastructure:
- Confirm you have the necessary infrastructure capacity and testnet experience.
- Familiarize yourself with the Protocol and Sidecar's basics.
- Flag your interest on the protocol's PERCH Proposal.
- Once testing begins, you’ll be added to a Lido testnet operator group to stay informed on next steps from the Sidecar team and Lido contributors.
- Read and understand the technical guides and deployment instructions provided by Lido or the Sidecar team.
- Set up and run the sidecar on Hoodi, according to the instructions.
- Actively engage with the development team to report issues or share insights.
- Submit feedback and findings as outlined in the testing plan to help improve the Sidecar.
DAO Contributors are currently supporting testing for Commit-Boost (PBS) and invite applicable Node Operators* to participate in this phase.
* Applicable Node Operators currently are limited to Curated Module operators using the Lido protocol
Protocols and Sidecars
Getting Started
- Review the DAO’s goals and Expectations and Requirements.
- At minimum, Lido DAO prioritizes collaboration with Protocols that:
- Contribute value to Ethereum’s ecosystem and align with decentralized staking goals.
- Provide clear documentation and use cases for their tools or Sidecars.
- Work with Lido’s NOM contributor team to refine your proposal and materials.
- Gather best practices for introducing your Protocol to the community.
- Submit your PERCH Proposal, ensuring it includes all required details for collaboration and alignment.
- Remain available to address questions, resolve issues, and track the Protocol’s performance during the testing phase.
- Share a concise summary of test results and insights in the Lido Research Forum to conclude the collaboration and to define next steps.
PERCH Auxiliary Proposer Mechanisms Roster
A list of the current ways Node Operators can participate in testing APMs.
Name | Tag | Forum | Apply for testnet | Status | Documentation | Troubleshoot |
|---|---|---|---|---|---|---|
Preconfs | Paused | |||||
Preconfs | Paused | |||||
PBS | Test underway | |||||
Preconfs | Not started | |||||
Preconfs | Not started | |||||
Preconfs | Not started | |||||
Preconfs | Not started |