TechFlow News, Nil Foundation, a ZK technology developer, announced it is building a solution to enable Lido to use zkOracle for staking Ethereum liquidity, enabling trustless access to historical data within the EVM.
This zkOracle enables trustless access to historical EVM data and improves the reward and issuance mechanisms of stETH. Currently, Lido relies on trusted third-party oracles, which poses security risks. The zkOracle allows trustless verification of total locked assets, reducing such risks.
According to the announcement, rewards for Lido stakers are distributed to stETH holders based on regular accounting reports, which reportedly include information such as the total value of staked assets, the number of active/exiting validators, withdrawals, and reward balances. If the accounting report (or its validation) is compromised, the reward distribution process would also be affected. Therefore, the report must be secured to the greatest extent possible, and the zkLLVM-based zkOracle can achieve trustless verification of key parts of the report.
