> For the complete documentation index, see [llms.txt](https://docs.sharedstake.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sharedstake.finance/sharedstake-v2/user-scenarios.md). # User scenarios ### Scenario 1: Periodic LP to earn LP fees and yield #### Primer When a user deposits ETH they can end up in either sgETH or wsgETH. Staking sgETH into wsgETH earns the user yield from validators. But sgETH is 1:1 with ETH and acts as a better option for liquidity pools designed for pegged tokens like univ3 and curve. wsgETH yield is disbursed discretely and then continuously. * discretely - There are delays to earning yield from validator deploy delays. i.e. right now it takes 45 days for a funded validator to start earning rewards due to the beacon chain queue. So rewards are disbursed by called a work() function on contracts by the DAO once worthwhile rewards are buffered in the RewardsReceiver Contract from the beacon chain deployed validators. * continuously - Additionally the wsgETH contract distributes sgETH rewards linearly over a governance set epoch length (1 week to 1 month, relative to beacon chain entry queue length) to protect against potential attack vectors #### Steps 1. Day 0 - User deposits ETH for sgETH\ Aprrox 91 days to rewards, 45 days in entry queue, 45 days for linear reward distro, 1 day of rewards 2. Day 0 - User deposits sgETH:ETH LP into univ3/curve/other partner LP protocols 3. Day 1 to 90 - Users can enter and exit via the LP positions generating fees. sgETH acts as a 1:1 pegged wrapped ETH alternative and may earn rewards in LP and help us get it listed as collateral too. 4. Day 45 - User deposits sgETH + n % earned from being an LP into wsgETH 5. Day 91 - User withdraws sgETH from wsgETH with all accrued interest 6. At this stage the user can withdraw via new sgETH coming into the contract or the liquidity pool. Total sgETH = (principal + LP gains + validator interest) Given the above heres some interest rate calculations. \ \ 1\. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.sharedstake.finance/sharedstake-v2/user-scenarios.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.