<h1>StakeWise x EigenLayer = The Ultimate - onchain memo 0x9d6029bb…cb0178

0xb0f43ab7…8377sent to0xec17aaba…5b392023-11-01·#18,478,155·view on Etherscan

<h1>StakeWise x EigenLayer = The Ultimate Restaking Stack</h1><h2>Executive summary</h2>StakeWise is one of the longest-standing liquid staking protocols on Ethereum and has a track record of <a target="_blank" rel="noopener noreferrer nofollow" href="https://github.com/aws-samples/amazon-eks-ethereum-staking#install-the-ethereum-clients-and-prometheus-monitoring">technical</a> and <a target="_blank" rel="noopener noreferrer nofollow" href="https://x.com/stakewise_io/status/1445475001696620550?s=20">security</a> contributions to the staking community. Our liquid staking tokens, <a target="_blank" rel="noopener noreferrer nofollow" href="https://etherscan.io/token/0xFe2e637202056d30016725477c5da089Ab0A043A">sETH2</a> and <a target="_blank" rel="noopener noreferrer nofollow" href="https://etherscan.io/token/0x20bc832ca081b91433ff6c17f85701b6e92486c5">rETH2</a>, represent ETH staked in the StakeWise Pool and have a combined supply worth 93,556 ETH that will be eligible to vote in this contest. <a target="_blank" rel="noopener noreferrer nofollow" href="https://youtu.be/156ntUS5Ob0">Watch our video about StakeWise x EigenLayer</a>We are <a target="_blank" rel="noopener noreferrer nofollow" href="https://x.com/stakewise_io/status/1714671799298896074?s=20">very excited</a> about the prospect of using ETH staked through StakeWise to secure EigenLayer AVs.When used together, the two protocols can form the ultimate restaking stack that lets Ethereans participate in selected EigenLayer AVs from the comfort of any Ethereum node and keep their assets liquid with osETH, the new StakeWise LST. Adding osETH restaking into EigenLayer is the first step towards unlocking this synergy. <img src="https://i.imgur.com/mSa84MG.jpg">Thanks to the ability of osETH to make any stake on Ethereum liquid (including solo stakes and ETH staked natively with third-party nodes), integrating the new StakeWise LST into EigenLayer will unlock broad-based participation in restaking and offer a robust, decentralized, Ethereum-based node operator set to any EigenLayer AV that is secured by restaked osETH. We are fully committed to executing this vision in the coming months. We encourage all the eligible LST holders as well as existing restakers from the solo staker and Lido / Rocket Pool / Coinbase cohorts to support the integration of StakeWise LST in this contest. <h2>1. Links</h2>Website: <a target="_blank" rel="noopener noreferrer nofollow" href="https://stakewise.io/">https://stakewise.io/</a>Blog: <a target="_blank" rel="noopener noreferrer nofollow" href="https://stakewise.medium.com/earn-more-eth-with-bespoke-staking-stakewise-v3-fec0ade1bda6">https://stakewise.medium.com</a>V3 docs: <a target="_blank" rel="noopener noreferrer nofollow" href="https://docs-v3.stakewise.io/">https://docs-v3.stakewise.io/</a>V3 Github: <a target="_blank" rel="noopener noreferrer nofollow" href="https://github.com/stakewise/v3-core">https://github.com/stakewise/v3-core</a>V3 Audits: <a target="_blank" rel="noopener noreferrer nofollow" href="https://github.com/stakewise/v3-core/tree/main/audits">https://github.com/stakewise/v3-core/tree/main/audits</a>Twitter: <a target="_blank" rel="noopener noreferrer nofollow" href="https://twitter.com/stakewise_io">https://twitter.com/stakewise_io</a>Discord: <a target="_blank" rel="noopener noreferrer nofollow" href="https://discord.com/invite/8Zf7tKyXeZ">https://discord.com/invite/8Zf7tKyXe</a>Telegram: <a target="_blank" rel="noopener noreferrer nofollow" href="https://t.me/stakewise_io">https://t.me/stakewise_io</a><h2>2. About StakeWise </h2><h3>2.1 TVL chart</h3><img src="https://i.imgur.com/5c5ZFyp.png">Since its launch in early 2021, StakeWise has accumulated over 100K ETH in staked assets across its two products: StakeWise Pool (~94K ETH) and StakeWise Solo (~8K ETH). <h3>2.2 Current protocol setup</h3><img src="https://i.imgur.com/tT7Q6W9.png">StakeWise Pool is currently running a staking setup with 4 node operators - StakeWise Labs, Cryptomanufaktur, Telekom MMS (division of Deutsche Telekom), and Finoa Consensus Services - where all ETH staked through a single Pool contract is distributed between participating node operators. Upon deposit, users receive sETH2 tokens that represent their initial stake. When holding sETH2 or using it in DeFi, stakers accrue rETH2 tokens that represent earned ETH rewards. Together, sETH2 and rETH2 tokens represent the entirety of the user’s stake. Both tokens can be traded back to ETH via Uniswap V3 pools, which have <a target="_blank" rel="noopener noreferrer nofollow" href="https://info.uniswap.org/#/tokens/0xfe2e637202056d30016725477c5da089ab0a043a">a total $72M in liquidity</a>. With the upcoming StakeWise V3 upgrade, they can also be redeemed for ETH natively.  The protocol charges a 10% fee on staking rewards, split 50:50 between the Treasury and the node operators. Current version of StakeWise has been <a target="_blank" rel="noopener noreferrer nofollow" href="https://github.com/stakewise/contracts/tree/master/audits">audited numerous times</a> over the years by Runtime Verification, Omniscia, Pessimistic, and most recently by Quantstamp. <h3>2.3 StakeWise V3 upgrade</h3>The upcoming StakeWise V3 upgrade represents a complete rethink of the traditional liquid staking model. <img src="https://i.imgur.com/nGuecr1.jpg">Instead of collecting deposits through a single contract and distributing validators among the participating operators, StakeWise V3 allows anyone to set up a Pool contract (known as a Vault) and collect ETH deposits of any size for staking from the broader Ethereum community. The terms for staking in Vaults are customized by their deployers, who also specify the operators, fees, and other parameters.  <a target="_blank" rel="noopener noreferrer nofollow" href="https://youtu.be/Y_jqEqqw1kQ">Watch our video about StakeWise Vaults</a>Neither Vault deployers nor operators have access to ETH staked through the Vault. Stakers can unstake ETH from Vaults at any time, as validators are exited automatically based on withdrawal requests. This makes staking through Vaults completely non-custodial. <img src="https://i.imgur.com/JOt2uUz.jpg">All ETH staked through Vaults can be made liquid by minting osETH, the new liquid staking token of StakeWise V3. This effectively allows any stake on Ethereum to be made liquid, provided Vault contracts are used to facilitate staking. Stakers who pool ETH with others, solo stakers, staking companies, wallets, and other organizations can leverage Vaults to access liquid staking from any node with osETH.  The total fee a staker pays depends on their Vault fee, and on whether they have minted osETH to make their stake liquid (optional).  The protocol will charge a 5% fee on the staking rewards accrued by minted osETH, while Vaults each charge their own fee.  The protocol <a target="_blank" rel="noopener noreferrer nofollow" href="https://github.com/stakewise/v3-core/tree/main/audits">has been audited</a> by Sigma Prime, Halborn, and Hats auditors. <h3>2.4 StakeWise DAO</h3>Upgradeability of certain smart contracts as well as management of the protocol Treasury is controlled by the <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.coingecko.com/en/coins/stakewise">StakeWise token ($SWISE)</a> holders through a DAO structure. <img src="https://i.imgur.com/3T87bug.png">StakeWise DAO uses a 1 coin = 1 vote system to vote on protocol matters. Voting is facilitated using a <a target="_blank" rel="noopener noreferrer nofollow" href="https://vote.stakewise.io">Snapshot module</a>.  <h2>3. osETH x EigenLayer</h2><h3>3.1 osETH features</h3>osETH is a new StakeWise LST, to be introduced with the upcoming StakeWise V3 upgrade. It is a value-accruing LST that users can mint to make their stake in Vaults liquid. Over time it can be redeemed for an increasing amount of ETH to reflect the accrual of staking rewards earned by StakeWise validators.  <img src="https://i.imgur.com/DPW7IU4.png">osETH can be minted from any node, provided its validators have been launched via a Vault contract. This enables solo stakers, staking pools, DAOs, wallets, custodians, and other organizations to access DeFi opportunities from their own nodes, offering a diverse backing to osETH. This makes the token decentralized by design. Minting of osETH from any node is uniquely possible thanks to overcollateralization. Stakers who mint osETH commit at least 111% of their staked ETH as backing for the LST when they mint it. Any penalties or slashing experienced on the level of StakeWise validators are absorbed by the excess backing, making osETH slashing-resistant and safe to use in DeFi. <img src="https://i.imgur.com/Z7jkDZX.jpg">To help osETH maintain peg in DeFi, the token can be redemeed for its underlying amount of ETH at any time. Overcollateralization is maintained using a liquidation mechanism for osETH positions that run low on collateral. <h3>3.2 osETH liquidity</h3>StakeWise DAO has voted in favour of a plan to deploy incentives for attracting liquidity to osETH token pairs on three DEXs: Uniswap V3, Balancer, and Curve. <img src="https://i.imgur.com/oApDMcM.png">It is expected that the migration of existing StakeWise users to osETH and the deployment of incentives for osETH liquidity will quickly give the new LST a robust liquidity profile akin to the existing sETH2 & rETH2 tokens. The migration plans are outlined here: <a target="_blank" rel="noopener noreferrer nofollow" href="https://stakewise.medium.com/transitioning-to-stakewise-v3-the-migration-plan-f44d7602e955">https://stakewise.medium.com/transitioning-to-stakewise-v3-the-migration-plan-f44d7602e955</a>The liquidity strategy is outlined here: <a target="_blank" rel="noopener noreferrer nofollow" href="https://forum.stakewise.io/t/stakewise-v3-liquidity-oseth/1203">https://forum.stakewise.io/t/stakewise-v3-liquidity-oseth/1203</a><h3>3.3 osETH in EigenLayer</h3>Allowing osETH restaking in EigenLayer will enable EigenLayer AVs to tap into a highly diverse node operator set on the Ethereum side, making them robust and highly censorship-resistant. They can also leverage support from both the institutional and retail stakers within the StakeWise community to quickly bootstrap their networks to a significant size thanks to nearly 100K ETH staked in the StakeWise Pool to date.  DAOs, solo and pool stakers, staking companies, DeFi users, custodians and wallets will be able to make restaking a part of their portfolio of strategies, accessible from the comfort of their own nodes. <h3>3.4 Native integration with EigenLayer</h3>The flexibility offered by Vaults, permissionless minting of osETH and EigenLayer AVs can be combined into what we like to call the ultimate restaking stack. Our vision is to enable native restaking from Vaults and allow minting of osETH based on restaked positions. The goal is to offer stakers the tools to easily access restaking through Vaults via a choice of EigenLayer AVs to support, operators to host validators, and parameters like fees, MEV, DVT and insurance. With permissionless osETH minting from any Vault, these restaked positions can be made liquid and used in DeFi while they secure other networks. This increases the attractiveness of restaking, lending more security to EigenLayer AVs, and creating a virtuous feedback loop where all stakeholders benefit. Such re-use of capital requires careful management of collateral ratios and thoughtful selection of supported EigenLayer AVs, but ultimately offers them maximum security while benefiting restakers in the process. Like we said, the ultimate restaking stack.<h2>4. StakeWise roadmap</h2><ul><li>StakeWise V3 upgrade</li><li>StakeWise V2 migration</li><li>Deployment of osETH liquidity pools</li><li>Redstone oracle deployment</li><li>Deployment of osETH redemption functionality</li><li>Integrations of osETH into lending protocols, wallets, exchanges</li><li>Deployment of osETH on L2s</li></ul>

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