SharedStake V2

High level overview

SharedDeposit v2 is a liquid ETH staking derivative protocol. And the next iteration of SharedStake.

User stake their ETH on the stake page.

In return they get wsgETH which tracks their yield and can be converted back to the original ETH + yield.

Eth is staked via a fully non-custodial system.

Under the hood

It features:

  • non-upgradeable immutable contracts

  • a non-custodial smart contract system for staking, receiving yield and withdrawals

  • high performance, battle tested design and performance based on 2+ years of SharedStake operation

  • on-chain continuous yield calculation which prevents later entrants from diluting yield

  • A shorter reward cycle epoch of 1 day compared to 1 week in FrxETH to payout yield quicker and reduce yield dilution from later deposits

  • 2+ years of battle tested infra operations for maximal validator performance

It has 2 main ERC20 tokens which act as LSDs.

TL;DR: Hold wsgETH if you just want to earn staking yield. Try sgETH for LP'ing.

  1. wsgETH ERC20 - Users holding wsgETH earn interest from validators operating in the network in the form of sgETH. This is analogous to wstETH or an aToken - users stake sgETH to get wsgETH and earn interest in the underlying, sgETH - for security, rewards are calculated over a cycle length (1 day on Goerli, 1 month on mainnet) - governance can slash sgETH held in the wsgETH contract to reflect any validator slashing events. This would move the price down. But in our 2+ years of operation we've never needed to move the price down

  2. sgETH ERC20 - sgETH is pegged 1:1 with ETH and users can mint / redeem it from buffered ETH for that price from the minter. - sgETH can act as a substitute for weth (wrapped eth) - due to the ability to mint /redeem it at a 1:1 peg, and how stablecoin liquidity pools optimally work, more interest can be earned from sgETH:ETH LP vs wsgETH:ETH LP where interest may be arb'd away

    - it is easier to maintain the stable peg vs an increasing wsgETH peg

To get these tokens users interact with a minter which allows the following functionality:

  • deposit

  • deposit and stake

  • unstake and withdraw

  • withdraw

The minter buffers ETH and allows the SharedStake Node operator to deploy validators.

Additionally it allows governance to slash, pause, set fees, collect fees.

There are 0 entry/exit fees. Though users can elect to add them later

As the minter works on a static price, higher capital efficiency is gained with capital being buffered in uniswap and curve liquidity pools.

I.e. A liquidity pool can buffer exits, allowing more ETH to remain staked and earn interest

Contract + Audit guidelines + README: here

Please read on the following pages for more details

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