The New Frontier of Liquid Staking

Transcript

[Music] [Music] thank you [Music] hello okay that's loud hey everybody thanks for joining me this afternoon um today we're going to talk about stakewise V3 and how this protocol can enable anybody to stake on their own

terms now unconscious this is not my first presentation on stakewise V3 so if anyone's seen a previous one don't go anywhere we have got some exciting news to announce today so stick with us but first I need to quickly introduce myself stickwise and the V3 protocol so uh my name is Jordan Sutcliffe I'm the business development lead at stakewise uh statewise is one of the original liquid staking protocols we launched way back in 2021 um and you know we've been one of the key innovators in this space we were the first people uh to launch non-custodial liquid staking uh we were the first uh protocol to try out dual economics to try out uh concentrated liquidity

um and we are what we were the first protocol and sadly still one of the very few protocols that enable forced exits of validators and so the V3 protocol is just another continuation on this uh Innovative Journey uh the protocol itself is a brand new model for liquid staking it unlocks some really cool uh features and also helps to solve some of the issues that we've seen uh with the the first generation of liquid staking protocols so what does stakewise V3 look like um so ethereum doesn't have a native delegation service on its Network like some of the new proof of State networks and so we've effectively built that

service Statewide V3 is a combination of two layers the first layer is what we call volts these are effectively the staking pools on the protocol so historically licorice taking protocols have consisted of a single staking pool with a set of node operators offering operating or staking the capital of that pool V3 is different rather than a single staking pool we will allow hundreds thousands to all run in parallel and each of these will be um in volts so volts are a way for anybody to offer trustless non-custodial staking as a service they're effectively a layer of smart contracts that sit between node operators and stakers and it has it says on the slide they're a

very comprehensive toolkit for anybody who wants to offer staking as a service we then have the second layer liquid the liquid stake and token layer OS eth and this is what takes Statewide V3 from just an East staking service to a liquid staking service allowing anybody to access OS access their state capital to use across D5 so quickly diving into each of these layers so volts each volt as I mentioned is effectively a staking pool they are fully permissionless anyone can come in create their own staking pool on stakewise whether you're a single node operator a group of node operators or even an entity like a wallet looking to

offer staking as a service you can come in create a vault create a staking pool within the V3 ecosystem um they are fully isolated each vault is its own unique smart contract so all the risks all the rewards are very much isolated into each vault and it's also non-custodial there's never any point that we as stakewise take custody of of assets nor do the underlying node operators the flow of funds is truly controlled by the stakers they can stake and unstake whenever they desire um and these vaults are highly customizable we're literally giving anybody the building blocks to create their own uh build their own staking solution for example they could be public any what that means anyone can

then delegate and stake within to this pool or they could be private which means only white listed addresses can can stake as a vault Creator you can specify the staking fee you can specify who the node operators are you can specify what staking configuration you run you can even specify whether or not deposits get tokenized into an erc20 token and if they do you can name that token and the ticker as well as being customizable they're fully automated as I mentioned they're a very comprehensive solution for staking as a service they accept deposits delegations of any size they get tokenized they get pulled and validators are automatically spun up off the back

of these delegations and automatically shut down when the stakers want to unstake and the staking fees are also accrued automatically so as I mentioned a very comprehensive solution for people who want to offer a staking as a service and this volts layer effectively creates like a free and open Marketplace for anybody to offer liquid staking the second layer is OS eth over collateralized staked eth and this is the token the main liquid stake and token of stakewise that will go live with V3 and this sits atop all of these staking pools or all of the volts and allow anybody staking into one of these vaults to access D5 the clue is kind of in the name is an

over collateralized token this is a key piece to ensure that any penalties in one volt do not filter through to the rest of the ecosystem and so that over class realization helps protect against losses such as slashing and the liquidity and Integrations are fully handled by stakewise Dao so we're effectively creating this entire liquidity ecosystem for anybody to come in and plug into so that's V3 in a nutshell when V3 um if stakewise got a dollar for every time this question got asked we would never need to do another funding round um we announced this back in September last year we had a public test sorry private test net back in February that

was an overwhelming success we had over 30 entities uh involved from commercial node operators through to solo stakers uh lots of feedback um and lots of just battle testing of the the volts architecture and the V3 contracts all went into their final round of audits uh three weeks ago today actually so this Con this this protocol is ready to launch once those audits are completed now there's one thing we promised before we launched this protocol and that was a public test net and that is what officially goes live today so the test net is the test net is codenamed specific the

URL is is there and you know this is a culmination of the best part of a Year's work of design and development so it's super exciting to get people getting involved and experimenting and playing with this system before it goes live on mainnet and that is what I'm going to cover for the rest of the presentation quickly I'm going to walk through the different features of V3 and how it can be used on testnet so this is the home page or your your land on when you when you visit the test net V3 is has extra complexities but those complexities brings extra functionality but it's super important that we allow anybody that's very simple staking um experience and this is what this page

effectively offers people who just want to what we call One Click stake um you can see the apy okay it's a bit low it's on the test net so that's not going to be real but the apy and the projected rewards and you can simply select how much ether you want to stake hit stake and at that point you are staking remember the OS is a liquid um it's a repricing token so simply holding that token um gives you uh staking rewards and by buying OSF in this fashion you get the full benefits of the over collateralization you get a token which has built-in slash and protection um and so and you also accrue the yield from a highly diverse set of node operators and so as far as liquor is

taking tokens go it's pretty it's pretty gold standard um and then if you want to unstake you can simply hit the unstate tab select how much you want to unstake uh and and process the transaction staking doesn't really get any simpler than that we then have a more advanced option where people who want to have a more bespoke staking experience so these are people who want to cherry pick which volts which staking pool they want to stake with maybe they want to stake with Solo stakers or those running a certain Mev relay they're able to do this and so the vaults page or the vaults Marketplace details or what all these different staking pools look like their their names their descriptions The Branding effectively their apis the tvls

and the scores and each of these can be filtered depending on your preference a note on the score this is going to be a key piece of the ecosystem that's going to be finalized over the coming weeks and we're going to be asking members of the community to give their opinions on on how that score is is designed we've got our we've got our ideas as a core team but we want you know it's a really important part of the protocol we want other people's say on this so stay tuned for that one but effectively you can then cherry pick which staking pool you'd like to stake into so let's say you would like to stake um with a solo Staker community um you can then select their vault you can then see details such as the apy the tvl the description and lots of other

details on the volts page if you like what you see it's very simple to seek simply hit the state button um and again specify how much you wish to stake and enter and confirm the transaction at this point you are staking providing there's enough eth in the in the vault for for validators you know at this point you are staking it's not liquid staking but you're still accessing the staking rewards courtesy of the eve Staker community if you want to get access to your state capital across defy then you can mint OS the liquid staking token and again very similar UI here specify how much osc if you want to Mint and then execute the transaction

remember I said overseas is over collateralized you'll notice here that the maximum that I could mince on my state's capital is about 18 osis the LTV is going to be 19. um I still earn the 20 East worth of staking yield that I originally staked into the pool but I can only make up to 18 liquid but that's that extra Capital buffer that is important to help protect the whole ecosystem but essentially yes you can make your Capital liquid to access D5 and then you can do whatever you want with it you can sell some of these osc's on the market if you want to access some capital on demand you can use them in defy and when it's time to unstake you simply have to return the OSU you originally minted

um and then you'll be able to submit for a native staking withdrawal from the vaults so one of the key things that this protocol also offers is the ability for solo stakers to Mentor liquid staking token against their own node solo stakers are the gold standard for decentralization and historically they've had to choose between solo staking and liquid staking and this V3 architecture removes um that decision you can do both so as a solo Staker it's very quick and easy to create your own Vault where you're the node operator on state Quest V3 so I'll run you through a quick example here The Vault literally takes about two minutes to set up using the UI you can specify how much capacity you want the

Vault to be the Vault fee given you're staking your own Capital it can be zero in this case whether you want that erc20 token for deposits again it's not necessary if you're a solo Staker just looking to stake your own Capital but maybe you want to make it private you don't want to be staking capital of other people's you can make the Vault private um so only you or maybe your close friends can stake you then choose whether you want to join the smoothing pool the smoothing pool would be a place where Mev across the the entire stakewise ecosystem will be shared across all vaults that enter and enter the smoother Ball but you don't have to if you want to run your own um Mev then you can absolutely do that and finally you can add volt branding

again as a solo Staker this is not super important um so I've just added a few random title and description there but that's literally it at that point you now have a vault the last thing to do is to set up your node and that is a case of pre-signing some validator keys uploading the deposit data file to the vaults um and yeah you can then simply stake and mint osc through the exactly the same fashion as I showed with the e-staker Vault it's a very very simple process and one that we really hope does push decentralization as we get more and more Solo stakers or more people who would have liquid staked originally now doing so but via their own nodes essentially unconsciously quickly running out of

time here so there's lots of interesting use cases that this V3 architecture unlocks I've covered a couple already another one is that you can create bespoke staking Solutions if you're a fund if you're a Dao who's got a lot of capital to stake for example you can create a private staking pool where it's just your Capital you can work with your preferred node operators whether it's solo stickers commercial or a mixture or both and create a bespoke staking solution um that probably saves a lot of fees essentially that you would pay um elsewhere and you still have the ability to access the liquid staking token should you desire it's also so V3 is also a white label liquid staking solution remember I said you can choose whether you want to Mint

uh whether you want you want your Vault to have a erc20 token if you enable that erc20 token then stakewise literally gives you an entire solution to offer your own liquid staking right out the box and if you want to you can create liquidity and Integrations for that that token what the majority of people will do however is they will just create their own staking pool and leverage off the liquidity and Integrations that stakewise provides for OS and so this is a way for anybody to sell liquid staking directly to their own users and clients and there's much more there's lots of companies that are already building on top of V3 blockscape announced their institutional staking solution using

this infrastructure a couple of weeks back and there's a couple more exciting Partnerships that we've got coming up um that we're looking to announce over the coming weeks so that's pretty much a wrap um it'll be great to kind of get people's involvement in this protocol we have you know some time uh not too long but we have the potential for feedback and improvements before the mainnet launch so we'd love to hear those uh and we'd also love to hear about the Fantastic ways that you're able to leverage this architecture there's lots of new um methods and that we haven't even thought of yet and so it'll be great to get everybody involved and see how they can leverage this uh this ecosystem to liquid stake on their own terms

and that's it thank you everyone [Applause] [Music]