What is StakeWise?
StakeWise is a decentralized finance (DeFi) protocol designed to offer a simple and secure way to stake Ethereum (ETH) while maintaining liquidity. It provides users with the ability to earn staking rewards through its innovative liquid staking mechanism, utilizing a token called osETH. This token represents staked ETH and accrues rewards over time, allowing users to participate in DeFi activities without losing access to their staked capital.
StakeWise operates through a system of Vaults, which are isolated staking pools connected to Ethereum nodes. Users can choose specific Vaults based on criteria such as yield, decentralization, and fees, and stake their ETH to earn rewards. These Vaults can be created by anyone, enabling individuals, organizations, and businesses to launch their own staking pools and offer liquid staking services to others.
One of the key features of StakeWise is its liquid staking token, osETH, which can be minted by staking ETH in any Vault. This token provides liquidity to stakers, allowing them to use their staked assets in DeFi applications for additional yield opportunities. osETH is designed with built-in slashing protection and accrues rewards from a diversified set of node operators, ensuring security and decentralization.
StakeWise also supports solo staking, where users can create their own Vaults and run validators to earn staking rewards. This feature offers flexibility and control over staking parameters while maintaining the benefits of liquid staking.
The StakeWise DAO, governed by SWISE token holders, oversees the protocol's key parameters and manages its treasury, ensuring a community-driven approach to protocol development and governance.