osETH StakeWise Staked ETH

StakeWise Staked ETH, or osETH, is the liquid staking token of StakeWise V3, a second-generation liquid staking protocol for Ethereum. Here’s a closer look at what StakeWise Staked ETH is and how it works:

Enabling Trustless, Non-Custodial Staking

StakeWise V3 allows any entity to offer trustless, non-custodial staking as a service. This means users can stake their Ethereum (ETH) without having to relinquish custody of their assets. Instead, they receive osETH tokens in return, which represent their staked ETH.

Providing a Liquid Staking Ecosystem

The osETH tokens provide users with a ready-made liquid staking ecosystem. Unlike traditional staking, where ETH is locked up, osETH can be used within the broader DeFi ecosystem, offering additional liquidity and utility options. This allows users to maintain access to their assets while still earning staking rewards.

Protecting Stakers from Slashing Losses

StakeWise Staked ETH (osETH) is designed with over-collateralization, which helps protect holders from potential slashing losses. Slashing is a penalty imposed on validators for misbehavior on the Ethereum network. The over-collateralization feature of osETH helps mitigate this risk.

Diversified Staking Yield

The osETH token accrues staking yield from a highly diversified set of node operators. This diversification enhances the security and reliability of the staking process, making osETH a robust liquid staking solution.

Empowering Stakers’ Choice

StakeWise V3 empowers stakers by allowing them to liquid stake on their own terms. Users can choose to delegate their ETH to their preferred node operators or stake through their own infrastructure, providing greater control and flexibility.