StakeWise is a liquid staking protocol that has no minimum taking requirement. Apart from using their staked ETH (sETH2) capital to earn yield throughout DeFi, users are also free to unstake at any time.
StakeWise provides two products, Pool and Solo (N/A for new deposits).
StakeWise Pool offers a non-custodial pooled staking solution. Staked ETH will be tokenised into sETH2 (a LSD), while rETH2 will be minted to represent staking rewards, both in a 1:1 ratio with ETH. A 10% flat fee is applied to the rewards earned by the Pool. Entering Phase 2, users can take their staking back by burning sETH2 and rETH in the StakeWise app to redeem ETH deposits and rewards.
StakeWise Solo previously supported users to run their own validator nodes using StakeWise’s infrastructure as a sole custodian by depositing 32 ETH. Registered by their withdrawal credentials, users are charged a monthly fee of 10 DAI per validator they operate. Rewards were directly linked to the beacon chain, which cannot be withdrawn before ETH 2.0.
Market Cap: ~$29.6m
The withdrawal key for funds in the Pool is split into seven parts, distributed among trusted entities and stored in cold storage, known as the Horcrux mechanism.
The protocol will become more decentralised after the Shanghai Upgrade once funds become non-custodial.
3. Dual token model
The dual token model of $sETH2 (staked ETH) & $rETH2 (ETH rewards) isolates their idiosyncratic risks.
4. StakeWise v3
StakeWise v3 is to be published (29/09/2022): The purpose of v3 is to reduce the degree of centralisation in ETH staking through two innovations. Namely, the Vault Network and the over-collateralised liquid staking derivative $osETH (Litepaper).
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