Key changes over V1
- 1.Fully non-custodial In v1 due to necessity we deployed with 0x00 beacon-chain withdrawal credentials as the alternative was not available. For v2 the withdrawal address is a smart contract which directs yield back to wsgETH in case of normal operations and allows users to burns sgETH in return for ETH in case of withdrawals.
- 2.No upfront fees In v1 we took a 0.315% fee on deposit to fund validators. There are no fees in v2 for stake or unstake starting out
- 3.Lower fees In v1 we started at 5% of yield and ended at 20% of yield for fees V2 starts fees at 9%. 5% for Node operations, 1% to founder, 3% to DAO for redirection. This can be scaled up over time by the community
- 4.Governed by the DAO Unlike v1, we now have a multisig onchain comprised of diverse members of the Sharedstake DAO. This multisig controls all governance roles on the contracts. Read more about the multisig at Security & Multisig FAQ
- 5.Rewards are paid out continously In v1, rewards are calculated over the entire period for all stakers and paid out with principal at the end. This was because there was no way to withdraw staked ETH at the chain level In v2, rewards are continuously paid out and autocompounded into new validators. This protects early users from loosing yield to later entrants, and increases long term yield.
- 6.2 token model In v1 we just had vETH2. In v2 we have sgETH which is pegged to ETH. While less technical users can ignore this detail, liquidity providers can use sgETH to minimize losses as traders are incentivized to buy under-peg wsgETH when rewards are distributed and redeem for ETH from the minter.
- 8.No oracle While V1 needed an oracle and offchain calc of gains, V2 does not. We inherit this property from s/frxeth code. WSGEth price is tracked on chain in the underlying sgETH token, and updated over a epoch length of 1 day after rewards are buffered into it
We also inherit the following positive properties from V1 that we may not see in other providers.
- 2.2+ years of battle tested operations on mainnet / lindyness
- 4.Resilience. While other VC backed startups may run out of runway we function as a volunteer driven cooperative and have continued to do so for a long time.
- 5.Large active community and community led
- 6.Highest ETH LSD redemption price 1.1 ETH per vETH2.