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SETH2 Price   

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SETH2

sETH2  

#SETH2

SETH2 Price:
$1,376
Volume:
$60.7 K
All Time High:
$4,823
Market Cap:
$35.1 M


Circulating Supply:
25,488
Exchanges:
1
Total Supply:
25,488
Markets:
3
Max Supply:
Pairs:
3



  SETH2 PRICE


The price of #SETH2 today is $1,376 USD.

The lowest SETH2 price for this period was $0, the highest was $1,376, and the current live price for one SETH2 coin is $1,375.96085.

The all-time high SETH2 coin price was $4,823.

Use our custom price calculator to see the hypothetical price of SETH2 with market cap of ETH or other crypto coins.


  SETH2 OVERVIEW


An ETH staking token issued to stakers in the StakeWise Pool.

The code for sETH2 crypto currency is also #SETH2.

sETH2 is 1.3 years old.


  SETH2 MARKET CAP


The current market capitalization for sETH2 is $35,070,490.

sETH2 is ranked #362, by market cap (and other factors).


  SETH2 VOLUME


The trading volume is modest during the past 24 hours for #SETH2.

Today's 24-hour trading volume across all exchanges for sETH2 is $60,678.


  SETH2 SUPPLY


The circulating supply of SETH2 is 25,488 coins, which is 100% of the total coin supply.

A highlight of sETH2 is it's exceptionally low supply of coins, as this supports higher prices due to supply and demand in the market.


  SETH2 BLOCKCHAIN


SETH2 is a token on the Ethereum blockchain.


  SETH2 EXCHANGES


SETH2 has limited pairings with other cryptocurrencies, but has at least 3 pairings and is listed on at least 1 crypto exchange.


  SETH2 RELATED


A coin that is related to #SETH2 is #RETH2.



  SETH2 RESOURCES


Websitestakewise.io
Whitepaperdocs.stakewise.io
Twitterstakewise_io
Telegramstakewise_io
Discord8Zf7tKyXeZ
Mediumstakewise


  SETH2 DEVELOPER NEWS



Announcing Launch of Opium Turbo Vaults for sETH2

We are excited to announce the launch of Turbo Vaults for sETH2 — a product developed through collaboration between the Opium Protocol and StakeWise community.Thanks to the Turbo Vaults, StakeWise users will now have the option to pursue an automated covered call selling strategy using their staked ETH tokens. In this product, sETH2 tokens are used as collateral to sell options, allowing depositors to collect option premia and thus earn a steady yield. You can deposit sETH2 into the Turbo Vault now by choosing the Vault from a list of ‘Staking” products in the Opium Finance app: https://app.opium.finance/eth/staking. Note that this strategy carries above average risk, so we recommend fully understanding the mechanics of covered call strategies before depositing funds into the Vault. The risk of the strategy is “selling” ETH at the strike price on the maturity date (every Friday) if the strike price is reached. Below we explain the mechanics of Turbo Vaults, followed by the generalized explanation of covered call strategies and their risks.How Turbo Vaults work Turbo Vaults from Opium Network allow users to deposit sETH2 as collateral for a covered call strategy on ETH, so a staking yield can be earned on top of options premia. Apart from providing additional use cases for sETH2 tokens, this naturally boosts the overall yield from pursuing the covered call strategy that was previously available only with ETH. The mechanics of the Turbo Vault mean that Opium’s smart contracts regularly (every week) sell options on behalf of depositors in the Turbo Vault and handle the settlement of profit / loss upon options expiration date. Here are the general rules of the Vault: 1. Strike price is chosen weekly, and a new batch of options is sold every Friday 2. Strike price is set according to a specified delta, which is +30% to the price of ETH at the moment of selling options 3. Settlement and profit / loss is calculated weekly on Friday at 8 AM UTC 4. There is no leverage used in this strategy i.e. Vault’s exposure is equal to the amount of capital deposited in the Vault. Note that in periods of high volatility, strike price delta can be set higher by the Pool Advisor that is the Opium Network’s DAO. This is always done based on current volatility, but only within a limited range so it cannot harm the Vault.An example calculation of profit / loss in the sETH2 Turbo Vault Whenever options expire in the money - A user stakes 10 sETH2 - Vault’s strike price for the week is $1,500 per 1 ETH - Time at the moment of settlement is $1,800 - Option premium is 0.04 ETH Weekly profit / loss calculation = option premium + min{(strike price — settlement price) / settlement price * user’s stake; 0} = 0.04 ETH + min{($1,500 — $1,800) / $1,500 * 10 sETH2; 0} = -1.63 sETH2 Final user stake is 8.37 sETH2 (~ 15’000$) which represents 10 sETH2 being sold at 1500$. While the user is worse off in ETH terms, in USD terms their position has increased to reflect the price of $1,500 per ETH. Whenever options expire out of the money - A user stakes 10 sETH2 - Vault’s strike price for the week is $1,500 per 1 ETH - Time at the moment of settlement is $1,200 - Option premium is 0.04 ETH Weekly profit / loss calculation = option premium + min{(strike price — settlement price) / settlement price * user’s stake; 0} = 0.04 ETH + min{($1,500 — $1,200) / $1,500 * 10 sETH2; 0} = 0.04 ETH Thus, the user has collected the weekly premium as profit.Why participate in the covered call strategy Why would you as a trader consistently run a covered call strategy? Assuming that every week you sell call options with a strike price that’s truly unattainable for ETH within that given week, you will earn a steady stream of options premiums — this is essentially your income from the strategy. Dividing that by the value of ETH you hold to cover the position, you arrive at a yield from covered call selling. This strategy can be interesting for traders who are happy to tactically sell if the price rallies +30% within the week. For them the risk of the strategy is not the risk but rather an opportunity. Such yields vary depending on the distance of strike from the current price, the volatility of ETH price, and other parameters, but are generally assumed to range between 5 and 15% throughout different points of the year. The UI of covered call strategy vaults will typically show the currently expected APR by projecting the last week’s gain from receiving options premia onto the next 52 weeks (i.e. 1 year). In case of Opium’s Vaults, historically this APR is around 10%. If you feel familiar with the benefits & risks of participating in a covered call selling strategy, head to the Opium Finance app and deposit sETH2 into our Turbo Vault here: https://app.opium.finance/eth/staking.A short primer on a covered call options strategy At a very basic level, a covered call strategy means that a trader regularly sells call options –instruments that give whoever holds them the right to buy a certain asset at a fixed price & date in the future — while holding the asset in question. We’ll analyze it through an example with ETH as the asset. Suppose you do trading for a living and have a strong idea about the price of ETH. Let’s say today ETH price is at $1,500 and you are convinced that in a week its price will not exceed $2,000, i.e. ETH will not appreciate by more than 33%. The best way to trade this conviction is by selling ETH call options — rights to buy ETH — to the market, with an expiration date set 1 week away from now, and $2,000 as the strike price. Expiration date is the moment the option can be used by its holder, and the strike price is the price at which they can buy ETH from you. Let’s break down the two possible outcomes from selling calls this way. Scenario 1: ETH price is <=$2,000 at the moment of expiration If in 1 week (expiration date) ETH price is below or at $2,000, the options you sold will expire unexercised, i.e. their holder will not use their right to buy ETH at $2,000 from you, preferring instead to buy from the market where ETH price is below $2,000. This scenario is what you have expected, and received the so-called options premium, i.e. price paid by the options buyer, as income. You are happy. Scenario 2: ETH price is at $2,000 or above at the moment of expiration If in 1 week (expiration date) ETH price is above $2,000, the options you sold will be exercised, i.e. their holder will use their right to buy ETH at $2,000 from you, instead of buying ETH at a higher market price. This scenario is not what you expected and you are in trouble — you now have to buy ETH from the open market at a price above $2,000, and sell it for only $2,000 to the options buyer. In exchange, you only received the options premium, i.e. the price paid to you for the option you sold. Depending on your strategy as a trader, you may be very unhappy (if you didn’t plan to sell your ETH) or you may be satisfied (if selling ETH at certain levels is a goal anyway). We can use this chart to describe the payoff for you as a trader across a spectrum of ETH prices at expiration, when simply selling calls: Your profit is always a weekly premium whenever the market price of ETH is $2,000 or less. This is highlighted by the green line (+ve values on the Y axis). However, once it breaches $2,000, your profit quickly turns into a massive loss that, like the price of ETH, is uncapped (i.e. can theoretically go to infinity). This is highlighted by the red line (-ve values on the Y axis). Now we can see that simply selling calls can be very risky — you can end up owing lots of money to the options buyer because ETH price doesn’t have a cap (at least in theory). So should we look for ways to minimize this downside risk? This is where covered call selling strategy comes in. Instead of selling calls naked, i.e. without holding the underlying asset, covered selling allows to minimize the downside risk. Since you already own the ETH you need to sell, you can avoid being run into the ground by the (theoretically) skyrocketing market price of ETH. Your loss is capped. To put it into numbers, if you hold 1 ETH and sell a call option with a right to buy 1 ETH at $2,000 in 1 week, then the worst that can happen is that ETH exceeds $2,000 and you will be forced to sell your (now) appreciated ETH at mere $2,000. Therefore, your downside risk is 0. However, the upside in your ETH position is now capped too, bounded by the difference between the strike price and your entry price. This is what covered call selling is about — capping your upside but limiting the downside risk of selling call options. Join thousands of other stakers in the StakeWise Pool to embark on your ETH & GNO staking journey 🚀 We love chatting on Discord and Telegram — see you there!




StakeWise Purchases Slashing Cover From Nexus Mutual

We are happy to announce that StakeWise has purchased cover for all its validators from Nexus Mutual, the leading provider of crypto protection. As a result, all capital deposited and earned via StakeWise Pool is now protected against slashing and associated losses, making our protocol considerably safer to use and ensuring that the 1:1 backing of StakeWise tokens with ETH is maintained. The cover has been purchased for 3 months as an initial trial period. This coverage from Nexus will compensate for any penalties, downtime or slashing that could be experienced by StakeWise or its node operators as a result of infrastructure and setup failure. It will also cover for the loss of staking income from the slashed and exited validators, until 17 October 2022. This will ensure that stakers’ income will be minimally affected by the slashed and exited validators. The cover doesn’t protect against the losses experienced in catastrophic scenarios (e.g., mass slashing in the network due to ETH2 client failure). The coverage cap has been set to 3 ETH per validator, which according to the team’s calculations is roughly double the size of maximum potential loss that StakeWise would experience amid a simultaneous slashing of all the protocol’s validators. As the size of maximum potential loss will increase with the number of validators created by the protocol, the StakeWise team will gradually upgrade to a policy with a larger cap (5 ETH) as our protocol continues to grow. In both cases, StakeWise’s own liability will be limited to 0.25 ETH per validator. The full text of the policy can be found here. The StakeWise team has worked closely with the Nexus Mutual team to ensure our validator network has comprehensive protection against slashing risk. With this innovative product, both protocols want to signal their commitment to making DeFi safer and easier to use. Our teams want to make ETH2 staking accessible for individuals concerned about the safety of funds deposited into DeFi. We would like to thank the Nexus Mutual team for creating this cover and tailoring the program to StakeWise’s needs, once again proving their status as the leading decentralized protocol for crypto protection. We look forward to continued collaboration, so StakeWise can take part in securing the Ethereum network through Proof of Stake and Nexus Mutual can protect Ethereum validators with their market leading ETH2 Staking Cover.




An Update on the Fundamentals of Staked ETH Tokens, Liquidity & sETH2

The recent liquidity crisis in the staked ETH market has unfortunately also affected StakeWise. In this blogpost, we will address the main concerns & questions the community has voiced over the past 48 hours and will share the team’s vision for StakeWise’s liquidity strategy going forward.Short recap on staked ETH token fundamentals First, let’s recap what the concept of “liquid” staking actually means. It describes a service that mints a token to represent some asset you have staked (read: locked in a Proof of Stake validator) through its platform. This token representation of one’s locked capital allows token holders to: i) instantly transfer (and sell) whatever they have previously staked to other people, ii) use staked capital as collateral for various trading purposes, and iii) receive ETH from validators by exchanging tokens for ETH at a 1:1 ratio whenever withdrawals become possible. It is this fact that locked capital can suddenly be freely transferred and used in exchange that makes staking “liquid”, and boy has this concept grown on people. Since the advent of staking on Ethereum, liquid staking protocols have accumulated nearly 5 million ETH in deposits, minting close to 5 million staked ETH tokens of various flavours. Such tokens are now traded for tens of millions of dollars in volume per day and used as collateral in lending protocols and options trading. Naturally, there exists a market where staked ETH tokens are priced against ETH and other currencies, with a myriad of parameters like the depth of liquidity, direction of flows, and choice of AMM design influencing their market price. Therefore, each token has 2 key values for stakers to watch: its underlying value, ie how much each token can be exchanged for ETH in the validators, and its market value, ie how much each token can be exchanged for ETH on the market. The difference between the two is what’s commonly known as the “discount”.Current sETH2 price & trading conditions Whereas historically sETH2 holders enjoyed only a tiny discount (the average market price of sETH2 over the past 6 months is 0.9967 ETH per sETH2, ie only a 0.33% discount), recent market volatility has taken the price of sETH2 to 0.9623, ie a 3.77% discount. There are several reasons for it (mostly stETH trading at a discount, ETH crashing, and liquidity providers pulling liquidity), but the ultimate result is that now sETH2 is trading in line with other staking derivatives available on the market. How does this discount affect different sETH2 token holders? We can differentiate between 3 buckets of holders: — 1. Token holders that plan to keep the token until withdrawals from staking.. — Such users are not affected by the discount, because they ultimately rely on the underlying value of the token, which is 1:1 with ETH. If this is you, rest assured that the market price of sETH2 has no bearing on how much ETH you can exchange your sETH2 for upon withdrawal. New users entering the protocol (and old stakers increasing their positions) even benefit from the discount, because they can obtain every 1 dollar of ETH for 96.5 cents thanks to the discount. — 2. Token holders that want to swap the token for ETH before withdrawals are possible.. — Such users are naturally affected by the discount because swapping early requires them to accept the market price, which is below 1 ETH for an asset that will be exchangeable into 1 ETH after the Merge. Still, sETH2 holders enjoy one the highest prices for their staked ETH token compared to the rest of the market (for reference, stETH has a 5.61% discount, while rETH has a 2.3% discount). — 3. Token holders that are providing liquidity in the Uniswap sETH2 / ETH pool. — Such users are also affected because they are willing to both buy and sell sETH2 at a discount when providing liquidity at the current price. While this is fine if sETH2 is trading sideways (ie not increasing or decreasing in price), LPs suffer if the price of sETH2 suddenly increases, especially if they provide liquidity in a tight range. This phenomenon is known as impermanent loss, which in case of sETH2 will become permanent once withdrawals are enabled and the price of sETH2 stabilizes around 1 ETH. Please read on to understand these risks further. To sum it up, the discount for sETH2 does not affect those users & LPs who plan to hold the token until ETH can be withdrawn from the validators, yet concerns those who would like an early exit or to continue LPing with old capital by repositioning into a lower range. As it stands, both sETH2 & rETH2 tokens are fully backed by ETH in the validators in a 1:1 ratio. The team can confirm that StakeWise or its node operators have not experienced slashing events to date, which means that all the deposits & rewards remain intact and the staked ETH tokens are fully backed. We are also looking into independent solutions that could affirm as much on-chain and will keep the community posted about the progress.Considerations for new capital allocators & existing LPs Before the recent decline in sETH2 price, the token was trading on Uniswap V3 in a narrow range close to 1:1 with ETH, helped by numerous people adding liquidity to earn farming rewards. However, after the price decline, many of such LPs experience being “out of range” ie market price not being within the range they chose to provide liquidity in, at which point all of their LP position has been converted to sETH2. This is what it looks like: While such LPs are not currently participating in farming the rewards any more, they still earn rETH2 from the total amount of sETH2 they provide on Uniswap. The rewards accumulating to this position can be collected on the Farms page: With the new sETH2 price, the range in which LPs would maximize their rewards (albeit at the expense of higher risk of IL) is 0.95887 to 0.96464 ETH per sETH2, with an all-in APR currently sitting at 112%. However, adding liquidity in the new range has several nuances that both the potential new and veteran LPs must consider:Veteran LPs who are currently out of range would be worse off selling sETH2 for ETH at the new price in order to continue providing liquidity in the new farming range. That’s because they would need to convert a big chunk of the sETH2 they acquired at 99 cents on the dollar into ETH at a price of around 95 cents on the dollar, ie take an immediate 4% capital loss on the ETH side of the new position. Unless LPs expect to earn back this 4% through farming incentives & trading fees during their time as LP, we do not recommend swapping from their sETH2 into ETH at the current price to add into a new farming range. Keeping liquidity out of range or removing liquidity to put sETH2 to work elsewhere outside of Uniswap, however, is perfectly safe.People who haven’t previously provided liquidity in StakeWise’s Uni pool and those who are willing to deploy fresh capital have a few opportunities available in StakeWise farms. First, they must make sure they learn about the specifics of LPing on Uniswap V3 and StakeWise’s method of farming rewards distribution. Second, they must ensure that the acquisition price of sETH2 they deposit is in line with the current market price, in order not to incur a loss from selling sETH2 at a discount when LPing. As long as they’re comfortable with the opportunities & risks, they can provide liquidity to farms SWISE rewards — the most profitable range to do this now is 0.95887 to 0.96464 ETH per sETH2. PS. for those reading this months down the line — the range is subject to change, so pop into our Discord for an update. It is also important to set the expectations straight — according to the team’s best thinking at this time, the price of sETH2 is likely to be driven by the discount on stETH in the next few months, because the two staked ETH tokens have a very similar risk profile & profitability. The discounts on both tokens will depend on the market conditions, which right now are far from ideal. The dynamics one could expect is that a rising ETH price is likely to attract more liquidity and create more demand for discounted staked ETH tokens, helping close the discount. In such a scenario, LPs at the current price should beware of getting out of range (i.e. having their whole LP position converted into ETH), while veteran LPs may get back into range based on the price of sETH2 recovering closer to 1. Conversely, a declining ETH price is likely to exacerbate the discount due to liquidations of borrowers with stETH collateral and flight to a more liquid asset (ETH) amid market turmoil. In this scenario, LPs at the current price should beware of getting out of range (i.e. having their whole position converted into sETH2), while veteran LPs would be further advised not to convert their existing sETH2 positions into ETH at the market price in order to avoid capital losses.Team’s position on SWISE incentives going forward In the next couple of weeks, the team will advertise the APR available in the sETH2/ETH pool in order to make the best of the SWISE rewards allocated to the pool for the current month. However, there is a concern that solidifying the price at the current levels (you know how efficient Uni v3 is) will not only slow down sETH2 from closing the discount if ETH rallies, but might also be detrimental to further TVL growth for as long as new deposits are routed via Uniswap. Therefore, the team is preparing to make several suggestions on the StakeWise forum about how to tackle growth, liquidity and sETH2 price all at once. In the meantime, we encourage the community to also think about this challenge and share their thoughts on the forum or in Discord. We’ll get through this together. Join thousands of other stakers in the StakeWise Pool to embark on your ETH & GNO staking journey 🚀 We love chatting on Discord and Telegram — see you there!




StakeWise Liquid Staking Now on Gnosis Beacon Chain

We are excited to finally reveal liquid staking on the Gnosis Beacon Chain (GBC) 🔥 Gnosis Chain users can now mint sGNO when they stake GNO / mGNO tokens and earn up to 18% APR wherever they go in the ecosystem. Staking rewards accrue daily in rGNO tokens, which can be reinvested back into the GBC for a compounding effect. Start staking your GNO & mGNO now: app.stakewise.io How to stake your GNOGNO liquid staking dashboard in the StakeWise app To receive sGNO and start staking, users must deposit their GNO or mGNO through the StakeWise dashboard. Follow these steps:Head to https://app.stakewise.io and connect your walletSwitch to the Gnosis Beacon Chain network by clicking on the network buttonEnter the deposit amount into the Stake interfaceConfirm the deposit transaction in your wallet Once you have completed these steps, you have started staking! Please note that your wallet must be connected to the Gnosis Chain network — the instructions on how to do this can be found here.How StakeWise works sGNO & rGNO tokens StakeWise uses a dual token model that separates staking deposits and rewards into two separate tokens. This model reflects the dynamic inside the validators and protects staking rewards from arbitrage and dilution when LPing by collecting rewards on the side. It also allows reinvesting the rewards back into staking for a compounding effect. To illustrate, upon deposit, you will receive sGNO, which is equal 1:1 to GNO and reflects your principal. For example, if you deposit 10 GNO, you will receive 10 sGNO. The 32:1 exchange rate between mGNO and GNO is also preserved so 32 mGNO is 1 sGNO. Holding sGNO in your wallet or DeFi applications, you will accrue daily staking rewards in rGNO, also equal 1:1 to GNO tokens, reflecting your rewards. For example, at an average APR of 10%, holding 10 sGNO for a year will yield you 1 rGNO. This makes sGNO an interest-bearing token, while rGNO is not. Both sGNO and rGNO will be redeemable 1:1 for GNO tokens when the withdrawals from the Gnosis Beacon Chain are enabled. Token liquidity & integrations StakeWise is planning to deploy liquidity pools for sGNO & rGNO in Curve Finance on the Gnosis Chain. Initial liquidity in the pools will be seeded by the StakeWise DAO as well as the Gnosis DAO, followed by a liquidity bootstrapping program. Once the pools get initial traction, we will kick-start the push for the universal adoption of sGNO & rGNO within the Gnosis Chain ecosystem and beyond. Decentralized architecture StakeWise’s decentralized architecture, called Metro, allows external node operators to join its network and run validators on behalf of the protocol’s users. The onboarding process is semi-permissionless, where anyone can apply to become a validator and join the network upon a successful DAO vote. The process is transparent — the steps required for onboarding are outlined here. The genesis Node Operator Set includes StakeWise Labs, Verihash and Cryptomanufaktur; the onboarding process for additional node operators is ongoing. To simplify the onboarding of new node operators, the StakeWise core team has open-sourced a set of Helm charts that allow operators to launch a pre-configured and scalable infrastructure for Gnosis Beacon Chain out of the box. It supports switching between the different validator and RPC clients on the fly and is highly robust. Find more information about the onboarding process and the infrastructure package here.About Gnosis Chain and Gnosis Beacon ChainGnosis Beacon Chain is a perfect candidate for becoming the canary network for Ethereum.Gnosis Chain and Gnosis Beacon Chain are the two networks created & deployed through a collaboration between the Gnosis DAO and xDAI teams. Intended to provide interoperability with Ethereum, the two networks aim to create an Ethereum-consistent environment for testing new concepts and facilitating fast and cheap peer-to-peer transactions for real-world use cases. Users can think of the Gnosis Chain as the execution chain (aka Ethereum mainnet) and the Gnosis Beacon Chain as the consensus layer chain (aka Ethereum Beacon Chain). The key difference between Gnosis networks and Ethereum is the usage of smaller block times and block sizes, and a stable currency (xDAI, a bridged version of DAI) to pay transaction fees. This allows Gnosis networks to offer faster and cheaper transactions and allow usage of applications that would be prohibitively costly on Ethereum. While GNO staking happens on the Gnosis Beacon Chain, the usage of staked GNO tokens happens on the Gnosis Chain. The latter network is home to many familiar projects like Curve, SushiSwap, 1inch, Perpetual Protocol, Superfluid, clr.fund, Circles UBI, and others. Liquid GNO staking from StakeWise will be the latest addition to the ecosystem, with sGNO and rGNO tokens in a perfect position to become the backbone of DeFi on the Gnosis Chain. To explore the stats around Gnosis Beacon Chain check out this Dune dashboard.About StakeWise StakeWise is a liquid staking protocol on Ethereum and Gnosis Chain. With over 55,000 ETH in TVL and over 4,000 users, StakeWise is the 3rd largest staking protocol on Ethereum. StakeWise’s unique feature is the dual token model that pays rewards earned from staking in a separate token. This allows users to manage their earnings more flexibly, as well as to reinvest income back into staking for a compounding effect. Join thousands of other stakers in the StakeWise Pool to embark on your ETH & GNO staking journey 🚀 We love chatting on Discord and Telegram — see you there!




Building Liquid Staking for Institutional DeFi & Strategic Investment from Blockdaemon & boldstart…

Building Liquid Staking for Institutional DeFi & Strategic Investment from Blockdaemon & boldstart ventures We are excited to announce that StakeWise has joined forces with Blockdaemon, a leading node service provider serving over 100 institutional customers, to build the first liquid staking product for the institutional (permissioned) DeFi space. As part of the collaboration, StakeWise has received a strategic investment from Blockdaemon and boldstart ventures, a VC fund focused on day one investments into developer-first and crypto infrastructure startups. The new solution is targeted at financial institutions and big tech companies with strict compliance requirements who nevertheless are seeking exposure to yields offered by staking Ethereum & utilizing staked capital in DeFi. A range of institutional customers have already expressed interest in using the product, which is set to launch at the end of 2Q 2022. The launch of testnet, and the first validators is set for this week. This will give prospective customers the chance to test out the features in a safe, early environment ahead of the mainnet launch. The StakeWise development team believes that institutional involvement in staking & DeFi is the expected next phase of flows into Ethereum, and StakeWise can become a key player in this market. By providing an institutional-grade product, StakeWise will be able to stay on top of the trend and unlock considerable TVL for its DAO. Joining forces with Blockdaemon, the leading infrastructure provider for institutions, StakeWise will have immediate access to clients looking for compliant ways to participate in DeFi and earn yield securely. Both teams are very excited about this opportunity!What will the new product look like? The protocol will feature a permissioned staked ETH token, meaning only whitelisted (read: KYCd) addresses will be able to interact with it. The token representation of staked ETH is a prerequisite to opening customers access to permissioned DeFi protocols that offer lending/borrowing capabilities, call & put options writing, interest rate swaps, and other innovations that enhance the efficiency of staked capital. The core technology for the new protocol will be provided by StakeWise, with Blockdaemon initially acting as the sole node operator. The protocol will be governed by its own set of stakeholders, outside of StakeWise governance processes. Still, the StakeWise DAO will retain the economic benefits of providing code for the new protocol since a significant share of the new product’s revenue will flow directly to the StakeWise DAO Treasury. In the words of Konstantin Richter, CEO and founder of Blockdaemon, “Blockdaemon is thrilled to partner with StakeWise to create a KYC-based liquid staking solution for Institutional customers. By building an institutional-grade liquid staking product on the Ethereum network, we are opening avenues for clients with demanding compliance requirements to utilize staked capital for borrowing, lending, option writing, liquidity provision and much more.”Strategic Investment by Blockdaemon & boldstart ventures To facilitate a closer alignment of interests in the new venture with its strategic partners, StakeWise has received an investment into SWISE from Blockdaemon & boldstart. The transaction will not affect the community’s share of SWISE ownership in the protocol. We are excited to have boldstart ventures take part in this strategic effort. In the words of Ed Sim, founder and managing partner at boldstart, “StakeWise continues to innovate and advance ways to earn yield and has the opportunity to extend their services for institutional clientele via their partnership with Blockdaemon. It’s a breakthrough opportunity, as the need for secure, compliant liquidity options grows with Ethereum and can lead to massive benefits for customers and the ecosystem overall.” About Blockdaemon Blockdaemon is the leading independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Supporting 50+ cutting edge blockchain networks in the cloud and on bare metal servers globally, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders to blockchains. We power the blockchain economy by simplifying the process of deploying nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralization and auto-healing of nodes. For more information, please visit https://blockdaemon.com/. About boldstart ventures boldstart ventures is a day one partner and true believer for developer first, crypto infra and SaaS founders. We collaborate with technical founders well before company creation, lead pre-product rounds at inception, and rally our network to help turn bold ideas into category-creating iconic companies. We’ve been in the trenches with Snyk, Blockdaemon, Kustomer, BigID, Superhuman (and so many more) from day one. See more about us and our full portfolio @ www.boldstart.vc and @boldstartvc About StakeWise StakeWise is a liquid staking protocol on Ethereum enabling any Ether holder to earn a passive yield by staking without capital lock-up. All deposited & earned Ether is tokenized with StakeWise tokens in a 1:1 ratio, allowing users to exit from staking at any time, earn extra yield on their stake in DeFi, and flexibly manage their staking rewards. Launched in March 2021, StakeWise has accumulated over 50,000 ETH in deposits from retail customers to date and attracted over $100 million of liquidity for its staked assets. The protocol is backed by Blockdaemon, Boldstart, Collider Ventures, Greenfield One, Gumi Cryptos and Lionschain Capital.




A New Era for StakeWise — Decentralizing the Architecture

A New Era for StakeWise — Upgrading to A Decentralized Architecture Join Blockdaemon, Figment, and others in running nodes for the StakeWise DAO. After months of development & a successful audit, the time has come for StakeWise to unveil its bid for a decentralized, high-growth, multi-chain future. We are excited to announce Metro — a decentralized architecture that allows external node operators to host StakeWise validators, partake in staking & MEV rewards, and seamlessly follow the protocol to other chains, all based on a single infrastructure package. Below we break down the key features of Metro and lay out the vision for a decentralized future for StakeWise.Improved, decentralized architectureA high-level overview of the ecosystem StakeWise is building. To help the protocol scale & become even more secure, Metro makes it possible for external node operators to join StakeWise and run validators for the StakeWise DAO. Parties that are interested in joining as node operators can utilize the deployment package developed & open-sourced by the StakeWise core team to launch institutional-grade infrastructure out-of-the-box. This enables anyone to apply for running nodes in the StakeWise DAO, in exchange for earning a share of staking rewards, network tips & MEV (after the Merge), all without a significant start-up cost and helping to decentralize the network.We are excited to share that Blockdaemon, Figment, Chainlayer, Forbole and Stakin are currently in the process of onboarding to the StakeWise Testnet as potential candidates for running nodes for the StakeWise DAO.Metro Deployment Package The Metro deployment package is designed for maximum resiliency & safety, and contains several key features including:The choice to run one of the main ETH2 clients: Prysm, Lighthouse, Teku or NimbusThe ability to migrate between ETH2 clients without downtime in case of distress, thanks to the always preserved slashing databaseThe possibility to maximize MEV across all protocol’s node operatorsThe portability of node running services within other EVM-compatible chains The deployment utilizes a set of Helm charts maintained by the StakeWise core team, allowing the node operators to set up & configure the staking applications on top of the Kubernetes cluster within minutes and spend less time on maintenance. It also ensures that the protocol can pro-actively coordinate its multi-chain and MEV strategy with the node operators, offering the opportunity to support more networks based on the same deployment package and enforcing a specific configuration of MEV clients to maximize returns for the protocol. The system meets the high standards of scalability & fail-over required for running a large-scale ETH2 operation. If you also would like to join StakeWise as a node operator, please find links to the relevant materials at the bottom of this announcement.Validator Committee & DAO GovernanceA high-level overview of the onboarding process for new operators. The onboarding of external node operators into the protocol will be governed by the DAO, with advice & input from a newly formed Validator Committee. The Validator Committee will consist of individuals very close to ETH2.0 development, who have a proven knowledge & experience in running ETH2 infrastructure. Together with the StakeWise core team, they have the necessary background for advising the DAO on the matters of decentralization and can provide an accurate assessment of the configuration chosen by prospective node operators, to consistently ensure high security & performance of the nodes. The StakeWise core team will present to the Validator Committee node operator candidates for the DAO in the coming weeks. With the input from the Validator Committee, the DAO will regularly decide on the following parameters:The inclusion and exclusion of node operators from the DAOThe number of validators to be run by a node operatorThe commission for running the nodes, andThe composition of the Validator Committee Going forward, the StakeWise core team intends for the DAO to develop a performance monitoring system for the node operators, whereby on-chain metrics & qualitative assessment will dynamically inform how many validators can be run by each of them. It can simplify the governance process and ensure closer alignment of interests between the DAO and node operators but will require fine-tuning & feedback from all stakeholders before being deployed. It is expected that all joining node operators will obtain a stake in the StakeWise protocol by investing in SWISE, as a means of putting “skin in the game”. This mechanism will be supplemented by an internal insurance mechanism in 1Q22, subject to an approval from the StakeWise DAO. Requiring an investment of SWISE will also ensure that node operators have a seat at the governance table and actively participate in advancing the goals of the protocol.Handling of known delegated staking vulnerabilitiesA high-level overview of the delegation process. The decentralized architecture of StakeWise is uniquely different from the existing alternatives thanks to the elimination of vulnerabilities that affect delegated staking. Specifically, the issue of node operators controlling the validator key, and hence the moment of withdrawal of users’ funds, has been addressed. In contrast to other delegated staking systems (that run the risk of node operators keeping the protocol’s funds hostage), the StakeWise DAO will have control over its node operators’ validator keys, and hence decisions around the timing of withdrawals (should a node operator fail to comply). The validator keys will be registered by the node operators utilizing StakeWise Deposit CLI, and are simultaneously split into shards that will be handled by the Validator Committee. In case the node operator ignores the DAO’s decision to exit the validators and execute the withdrawal of funds, the Validator Committee can execute a forced exit of the validators and trigger a withdrawal by reconstructing the validator key from the shards and generating an exit signature that is submitted to the Beacon Chain on behalf of the StakeWise DAO. Similarly, the issue of potential pre-registration of a validator with the node operator’s own withdrawal credentials (previously identified in many staking protocols by Dmitri Tsumak, StakeWise’s core developer) has been addressed in StakeWise’s own architecture. For every 32 ETH accumulated by the Pool smart contract, StakeWise DAO oracles will choose the next validator to register and will check whether the public key of that validator was not used up to the latest ETH2 deposit contract root hash. If true, oracles will vote for the root hash. If the root hash changes by the time the transaction is submitted, the Validators contract will reject the registration. As a result, the malicious operator won’t be able to assign the protocol’s ETH to its own withdrawal address. Thanks to complete control over the delegation and withdrawal process that is ensured by the new architecture, we expect the StakeWise DAO to establish itself as the safest delegated staking solution on the market.Summary With a decentralized architecture at its core, StakeWise will grow larger and become more resilient. StakeWise will have additional partners to lean on for the development of its multi-chain strategy and new products, and an increased level of protocol governance. We are incredibly excited at the prospects for StakeWise in 2022 and beyond and invite current stakers old and new to join us on this exciting journey! — Useful links. — DAO proposal for StakeWise v2 deployment: https://forum.stakewise.io/t/swip-7-deploy-stakewise-v2-on-mainnet/554 Validator Offering Document: https://docsend.com/view/mumuk6jy75qkn67p Infrastructure setup guide: https://docs.stakewise.io/node-operator/infrastructure Node operator onboarding guide: https://docs.stakewise.io/node-operator/dao-proposal




Announcing New SWISE/sETH2 Liquidity Pool

In the past few weeks, the StakeWise community has rallied behind the idea of deploying a Uniswap V3 pool for SWISE/sETH2 token pair and quickly developed it from a concept into a proposal. Following a successful DAO vote to allocate 500,000 $SWISE of incentives towards this farm, the core contributor team is excited to announce that the SWISE/sETH2 pair (0.3% trading fee) is now live on Uniswap V3 and the farming program has now started! Link to the SWISE/sETH2 (0.3% trading fee) pool is here: https://info.uniswap.org/#/pools/0x992f534fcc87864875224d142d6bf054b1882160 Note that only the Full Range positions will be eligible for farming SWISE. It means that this pool is likely to function like a Uniswap V2 pool, where liquidity is provided across the full range of prices. To learn about how to provide liquidity in this pool, read below!The new SWISE/sETH2 pool is now live on Uniswap V3!Benefits of the SWISE/sETH2 pool to StakeWise and LPs The new pool is expected to bring deeper liquidity for the SWISE token and will become its key trading venue going forward. LPs in the pool will continue earning staking rewards from their position’s sETH2 balance, and will earn SWISE farming rewards and trading fees on the total position. Despite being paired with sETH2, the SWISE token can actually be bought and sold for ETH, USDC, DAI and any other token trading on Uniswap thanks to its routing mechanism. If routed, the trades will always pass through the sETH2/ETH pool, which will help its LPs earn more trading fees. If the DAO successfully votes on the distribution of protocol fees to SWISE holders (as per this proposal), LPs in the SWISE/sETH2 pool will also earn protocol fees on their SWISE balance and will not need to do anything extra to opt-in. Finally, we recommend LPs in the SWISE/1INCH pool on the 1inch Exchange to withdraw their liquidity and transfer it to the Uniswap pool to avoid the potential IL risk.How to add liquidity in the SWISE/sETH2 pool and farm SWISE To start farming SWISE in the SWISE/sETH2 pool, simply head to the pool’s page and add liquidity choosing Full Range as your Price Range and 0.3% fee tier. Follow the steps below for exact instructions:Head to the SWISE/sETH2 (0.3% trading fee) pool page on Uniswap: https://info.uniswap.org/#/pools/0x992f534fcc87864875224d142d6bf054b1882160Navigate to the “Add Liquidity” interface via a button on the pool’s page (illustrated below), or using this direct link. 3. Choose Full Range when prompted to set the Price Range on the right-hand side of the interface. The location of the Full Range button is illustrated below.Only the Full Range positions will be eligible for the liquidity mining program. Note that only the Full Range positions will be eligible for the liquidity mining program. Concentrating liquidity in any other range other than Full Range is likely to increase your trading fee income, but will not earn you any SWISE from the farming program. LPing with a Full Range means that liquidity will be offered at the full range of possible prices. This reduces the amount of impermanent loss that LPs can experience in Uniswap V3 pools to a minimum.Side note: if the Uniswap UI is not allowing you to choose the Full Range, please manually choose SWISE and sETH2 in the top-left corner of the interface (even if they are already chosen). This will fix the problem. 4. Choose the amount of SWISE liquidity you want to provide by entering it into SWISE section on the left-hand side of the interface. The required amount of sETH2 will be calculated automatically and will reflect the prevailing price of SWISE in the pool in sETH2 terms. This is illustrated below. 5. Approve your SWISE and sETH2 tokens for spending when prompted by Uniswap. Depending on whether you have previously interacted with SWISE and sETH2 on Uniswap, this will require up to 2 transactions. 6. Confirm the addition of liquidity by pressing Preview and then Add. Illustrated below. And that’s it — you’re a Liquidity Providooooor now!Final remarks As always, if you have any questions related to this guide or the SWISE/sETH2 pool, drop by our Discord, Telegram or Twitter where our community & the development team are always happy to help. On behalf of the StakeWise core contributors, we hope you enjoy the profits from liquidity provision and find it smooth sailing!




How to use sETH2 tokens in the Fuse Pool

Attention, everyone — our friends at Reflexer Finance have added sETH2 to an experimental pool that allows our users to lend sETH2 to other market participants and use it as collateral to borrow ETH, RAI and other assets. This Fuse pool is located in Rari Capital’s platform and can be accessed here: https://app.rari.capital/fuse/pool/46. We are excited to get the ball rolling on this sETH2 integration, but ask you to become familiar with the risks before interacting with this pool. Please note that this is an experimental pool so at this time rETH2 **will not yet accrue** to the depositors into Fuse. This will be remedied in our next update. With this out of the way, let’s explore this Pool in more detail.What it is This Fuse Pool (called Money Flavours) is designed to allow borrowing RAI and ETH against interest-bearing tokens like sETH2. The idea is that you can preserve your initial capital & staking yield while borrowing against it in order to squeeze out more juice from your stake. This is de-facto leverage. For example, you may borrow some RAI against sETH2, convert RAI to another asset like DAI, and use it to farm the latest degen coin or buy a car offline. In the meantime, the interest generated from lending sETH2 and staking can be used to cover the borrowing rate or even pay down the loan over time. However — and this is where one needs to pay attention — the lending and borrowing rates are dynamic, as are prices of RAI and ETH (sETH2). It means that one must always assess how the rates are going to move in the future. Not understanding this may lead to the (at least partial) loss of your initial capital, or make the loan more expensive than originally thought. We will explore these risks below.How it works The steps are simple: 1. Supply sETH2 into the pool and earn a lending rate whenever others borrow sETH2 2. Borrow ETH or RAI for up to 50% of the US dollar value of deposited sETH2 (i.e. 50% LTV) and pay a borrow rate for the duration of the loan Note that you will not be able to withdraw sETH2 from the pool unless you return the borrowed amount + accrued interest. Also remember that if the US dollar value of the borrowed amount exceeds 50% LTV at some point, your position will be liquidated, ie a portion of sETH2 you deposited will be claimed from you in order to pay down your debt automatically. To avoid this, make sure your borrow never exceeds 50% LTV.Risks There are several risks one must take into account: 1. Changing borrow rates can make loans more expensive The more RAI or ETH is lent to this Fuse pool and the lower the utilisation rate (ie proportion of borrowed/available) of these assets, the lower the borrow rate will be. However, if RAI lenders decide to withdraw their capital from the pool, or if the utilisation rate spikes because of such withdrawal/active borrowing by others, it will cause a sharp increase in the borrow rate, making loans more expensive. Example follows:1,000,000 RAI in the pool @ 5% utilization -> borrow rate is 1% (arbitrary number)500,000 RAI in the pool @ 5% utilisation -> borrow rate is 3% (arbitrary)1,000,000 RAI in the pool @ 90% utilisation -> borrow rate is 10% (arbitrary) 2. Changing exchange rates between RAI/ETH can force the borrowed amount to exceed 50% LTV. Whenever sETH2 is used as collateral and RAI is borrowed against it, any appreciation in ETH price vs RAI will force the LTV of the loan to go down, making it more safe. Conversely, any depreciation in ETH price vs RAI will force the LTV of the loan to go up, making is more dangerous (ie susceptible to liquidation). Example follows:@ Price 1 ETH = 1000 RAI borrow 3000 RAI against 10 sETH2 -> LTV = 3000 / 10000 = 30% (healthy)Price change: 1 ETH = 1500 RAI -> LTV = 3000 / 15000 = 20% (healthy)Price change: 1 ETH = 500 RAI -> LTV = 3000 / 5000 = 60% (liquidation)About the other parties Reflexer Finance are the deployers of this pool, which means they chose the price oracles for sETH2, the interest rate model and the LTV. Going forward, the governance of these parameters will require a 24-hour Reflexer DAO vote. Importantly, Reflexer are also the creators of RAI, a stable currency designed to maintain a stable value, which unlike DAI is **not pegged** to the US dollar. RAI mechanism targets a certain value and adjusts the currency’s supply dynamically based on the fluctuations of ETH which is its reserve currency. For more information on how RAI works, read here: https://reflexer.finance. Rari Capital’ Fuse is an open interest rate protocol that allows users to lend and borrow digital assets. For more information on how Fuse pools work, read here: https://info.rari.capital/products/fuse/ Join hundreds of other stakers in the StakeWise Pool to embark on your ETH staking journey and claim your place as an early adopter 🚀 We also love chatting on Discord and Telegram — see you there!




How to compound your ETH2 rewards with StakeWise

We are excited to announce that starting today, StakeWise users will be able to reinvest their ETH2 rewards back into staking directly from our dashboard and achieve a boost to their APY through monthly compounding. Simply head to the StakeWise dashboard and enter the amount of rewards you would like to reinvest in the Compound section — our interface will handle the rest.Get started with StakeWise to stake your ETH and compound your rewards on Ethereum 2.0. Start staking. Below we explore how the unique token model of StakeWise enables the reinvestment of ETH2 rewards and show how compounding them via the StakeWise dashboard can help stakers boost their APY.Compounding — an impossible feat for everyone but StakeWise Contrary to the popular belief, the staking rewards in ETH2 do not compound for most ETH2 stakers. Instead, the rewards earned by stakers sit on the validators’ balances without any productive use, available for withdrawal only in Phase 2 of the Ethereum 2.0 roadmap. Today, this already amounts to 207k ETH, or nearly $500m, of idle capital in the Beacon Chain. Wouldn’t it be better if we could reinvest it?An excerpt from the ConsenSys ETH2 Ecosystem Report — StakeWise meets the key criteria expected of ETH2 operators, including offering the rewards reinvestment. The ConsenSys ETH2 survey seems to suggest so — its respondents have circled out the compounding of staking rewards as the most desirable feature they expect from a third-party staking provider. To date, no staking pool or service has been able to offer the ability to reinvest the rewards from ETH2 staking, but StakeWise aims to change that.How StakeWise enables compounding StakeWise has created a stable liquidity pool between its deposit ETH (sETH2) and reward ETH (rETH2) tokens to allow users to reinvest their staking rewards. Therefore, all that is required to compound your rewards is to regularly swap rETH2 into sETH2 via Uniswap V3 pool. The pool has ample liquidity and can handle a swap of all the outstanding rETH2 supply into principal without any slippage. StakeWise LPs in this pool are earning a double-digit APY without impermanent loss, benefiting from one of the highest-yielding opportunities to deploy ETH capital in the whole of DeFi. We like to keep everyone happy. Compounding is not the only unique feature of the protocol — the dual token system, which separates ETH2 rewards and ETH2 deposits into two different tokens, has many advantages. With StakeWise, users preserve access to staking rewards when applying staked ETH across DeFi and earn a higher APY by simply avoiding the single token systems of Lido, Binance, and others. Put simply, staking with our protocol is always more profitable.The benefits of compounding your rewards Compound interest is the 8th wonder of the world. With staking being a long-term endeavour akin to investments into stocks and bonds, frequent reinvestment of ETH2 rewards adds up to a significant boost to the APY over time. Here is what compounding your staking rewards at an (estimated) post-merge APY of 10% would lead to: The extra income from the reinvestment of your ETH2 rewards is equal to a ±30% boost versus the baseline over a 5-year period, a 70% boost over a 10-year period, and a ±315% boost over a 20-year period. For the stakers with a long-term orientation, the choice of whether to reinvest should be an obvious one. Those starting on this journey today have a massive advantage, and we cannot wait to welcome them to StakeWise. Join thousands of other stakers in the non-custodial StakeWise Pool to embark on your ETH staking journey 🚀 We love chatting on Discord and Telegram — see you there!




The next chapter: Announcing liquid ETH staking with StakeWise and farming campaigns on Uniswap V3

Liquid ETH staking and farming campaigns on Uniswap V3 with StakeWise - It is tough to find a better product combination than StakeWise and Uniswap V3 — both maximize the return on your capital and are used by DeFi novices and power-users alike. Recognising these synergies, the StakeWise DAO has voted in favour of deploying liquidity pools for its staked ETH tokens on Uniswap V3 and created a farming contract to incentivize liquidity provision. The result is a combo of highly liquid pools that allow exits from staking and compounding of staking rewards, all while offering double- and even triple-digit APYs to LPs and <1% slippage for trades as large as $4m (on the Pool’s $12m of active liquidity). At the risk of sounding pompous, nothing really compares.  — @litocoen Below we will explore the great benefits offered by Uniswap V3 pools to the LPs and stakers, examine the farming opportunities open to the DeFi users, and review the rules of the farming program. — Liquid ETH2 staking with StakeWise - Liquid staking is the holy grail of ETH2 pools. With the deployment of liquidity on Uniswap V3, StakeWise users have the freedom to exit from staking at any time and do so with minimum slippage. All that is required is swapping sETH2 tokens for Ether via the Uniswap interface, with direct swaps from the StakeWise dashboard currently in the development pipeline.A $4m exit from staking in the StakeWise Pool incurs just 0.572% slippage. Meanwhile, large stakers looking to skip the StakeWise deposit queue (created to boost APY) and users looking for bargains can utilize the liquidity pool to snap up sETH2 at or below its redemption value. Trades in both directions boost the total volume passing through the pool, handsomely rewarding LPs for providing capital. Following the latest update, the deposits from new stakers will be routed through Uniswap whenever sETH2 price is below 1, contributing to a tight peg in the liquidity pool and adding to LPs profits. It is good to be a StakeWise staker and an LP — everyone wins. — Provide liquidity without impermanent loss - Liquidity providers are the kingmakers of liquid staking protocols. In the pursuit of a deeply liquid staked ETH pool (defined by the amount of slippage, not TVL), StakeWise has focused on building a sustainably profitable LP strategy that would offer the best risk/reward ratio to the seekers of yield on ETH. Thus, we created a pool with no impermanent loss yet with up to triple-digit APYs coming from: a 42x boost to the trading fee that LPs have come to expect from staked ETH liquidity pools, based on the capital efficiency improvement of Uniswap V3 and a higher swap fee, the highest staking yield on the market, and, generous farming incentives., The numbers speak for themselves: based on the 7-day trading activity in our sETH2/ETH pool, LPs earned >100% trading fee APY as a whole, with values higher or lower depending on the choice of the ticks. Together with a farming APY in excess of 10%, LPs can be earning a triple-digit yield on what effectively is a stable pool between staked ETH and ETH.Already at #15 on Uniswap V3 based on TVL, the sETH2/ETH allows LPs to earn staking rewards, trading fees, and farming incentives. As LPs contribute more capital, we expect the APY to converge to lower figures. To counteract this effect, we will focus on expanding the integration of sETH2 across DeFi, which would support greater utilization of growing liquidity. This includes pairing sETH2 with more assets in liquidity pools and gaining acceptance for sETH2 as collateral in insurance, options selling, and lending protocols. This activity will undoubtedly contribute to the consistent growth of StakeWise TVL and trading fees for the LPs, ensuring that the LP strategy with the sETH2/ETH pool continues to yield the most in ETH terms in the whole of DeFi. — Reinvest staking rewards to boost yield - Compound interest is the 8th wonder of the world. From the beginning, our dual token system was created to boost the staking yield via the possibility to reinvest staking rewards back into principal and and benefit from the power of compounding. Whereas its boost to the APY is marginal when the network yield is 6%, it will become a game-changer when the Merge pushes the staking yield to over 15%. Only the dual token system can offer reinvestment opportunities before Phase 2, and our sETH2/rETH2 liquidity pool on Uniswap V3 now makes it possible.Stakers can turn every ETH of rewards into an ETH of principal, effectively compounding their returns. Compounding the rewards requires a simple swap of rETH2 tokens into sETH2 tokens via the Uniswap interface, and soon also directly via the StakeWise dashboard. Going forward, we will develop a vault for auto-compounding of the rewards to solidify our position as the liquid ETH2 staking protocol with the highest yield, and simplify the restaking process for users. — The terms of the farming campaign - To support the deployment of pools on Uniswap V3, StakeWise team has developed one of the first farming contracts for Uniswap V3 and released a dedicated Farms page with an overview of ongoing farming campaigns that involve StakeWise tokens.A sneak-peek at the StakeWise Farms, available at stakewise.io In short, it follows the same principle that is used by Uniswap to allocate the trading fees: the more of LP’s liquidity is active (based on the size of position and proximity of chosen ticks to the current price), the more farming rewards they will earn. What is yet another testament to the capital efficiency of StakeWise, locking one’s LP tokens is not necessary to participate in farming — the contract automatically recognizes those who add or remove liquidity and takes hourly snapshots to allocate both the farming and staking rewards to these LPs. Farming & staking reward payouts happen daily via a Merkle distributor, which means that LPs can choose to claim the rewards daily or stack them up for as long as they want — weeks, months, or years. Since locking of LP tokens is not necessary to participate in farming, they can be taken to other DeFi protocols to be used as collateral and earn more yield for the LPs.StakeWise DAO has voted in favour of allocating a total of 6.5m of $SWISE towards farming incentives To bootstrap the initial liquidity, the StakeWise DAO has chosen to allocate 6,000,000 $SWISE to the sETH2/ETH pool and 500,000 $SWISE to the rETH2/sETH2 pool as farming incentives. The campaign will run for 30 days, after which it is likely to be extended based on the importance of token liquidity for the protocol. Current incentives offer double-digit farming APY in the pools with zero IL risk and an additional ETH yield coming from staking rewards and trading fees. Are you not entertained?! — Conclusion - We are excited about this new chapter for StakeWise — one where LPs, ETH stakers and DeFi users at large can benefit from our high-yield crops based on non-custodial and liquid ETH staking. For those looking to dip their toes into our staking and liquidity pools, we wrote a guide for the Uniswap V3 LPs, published a deep-dive into our ETH2 security practices, and continue building our community on Discord and Telegram. Pop in to say hi!



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