User scenarios

Scenario 1: Periodic LP to earn LP fees and yield


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


  1. 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. 2.
    Day 0 - User deposits sgETH:ETH LP into univ3/curve/other partner LP protocols
  3. 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. 4.
    Day 45 - User deposits sgETH + n % earned from being an LP into wsgETH
  5. 5.
    Day 91 - User withdraws sgETH from wsgETH with all accrued interest
  6. 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.