General
Token Asset Name: Staked Ether from StakeWise, osETH
A description of the project and the token
StakeWise was the first non-custodial liquid staking solution to launch on Ethereum back in early 2021. In November 2023, the StakeWise V3 upgrade went live and transitioned the protocol into a fully white label liquid staking solution, enabling any entity to leverage the StakeWise smart contract infrastructure to offer trustless, non-custodial staking-as-a-service. Alongside the V3 upgrade, osETH was launched as the protocol’s primary liquid staking token, creating a single-layer of composability across the StakeWise staking ecosystem. osETH features overcollateralization to protect holders against slashing and accrues yield from a highly diverse, and fully permissionless, node operator set. The liquidity and integrations for osETH are provided by StakeWise DAO. Whether it is a commercial operator offering liquid staking directly to their institutional clients or a solo staker liquid staking on their own node, osETH provides access to the DeFi ecosystem for everyone.
Benefits to Compound Community
The most popular use-case of staked ETH assets in DeFi is borrowing ETH for leveraged staking. Several structured products are built specifically on top of this use-case and leveraged staking in general has acted as an important growth pathway for both money markets and staking protocols. StakeWise is working closely with the teams over at CIAN and Sommelier to ensure that products are built on top of the ability to utilize osETH on money markets, which will directly benefit Compound.
Compound will also further diversify its exposure to staked ETH assets and unlock important use-cases to solo stakers, with osETH the only LST that solo stakers can use to access the value of their staked capital.
osETH is a productive asset as it will appreciate in value over time based on the rewards from a highly diversified set of node operators. This re-pricing mechanism will not only make osETH easy to integrate into Compound, but it will help reduce the risks of default over time as osETH generates staking yield. osETH is overcollateralized to protect against possible slashing losses and reduces the risk of using osETH as collateral to borrow against, especially when borrowing ETH given the high price correlation.
Resources (Website, Social Media Links and docs)
- Website
- Litepaper
- Docs
- Github
- What is osETH?
- osETH Contract Address / CoinGecko / CMC
- Audits
- Twitter (~12.25k followers) / Discord (~5.5k members) / Telegram (~2.75k members)
The proposal author, their contact info and the relationship between the author of the new market proposal and the token*
Proposal written by Jordan Sutcliffe (@Jstar, Telegram and Twitter on behalf of StakeWise DAO.
Market Risk Assessment
Market Cap of the token
The current supply of osETH is ~33k ETH (~$130M). Note, the minting of osETH is optional - stakers only need to mint and pay for osETH if they want to access DeFi, thus the TVL of osETH is < TVL of StakeWise Vaults (which is currently ~100k ETH). There is no set emissions schedule for osETH.
Minimum and maximum market cap of the token within the last 6 months.
The market cap of osETH is fairly consistent vs the total ETH staked on StakeWise, however jumps in supply are experienced when new DeFi opportunities come online, such as when the first incentivized liquidity pools went live, or when the token was added to Eigenlayer for restaking.
The largest exchanges where the token is listed and its respective liquidity*
osETH has ~$90M of foundational liquidity in place across Balancer ($70M of osETH-ETH), Curve ($20M of osETH-rETH), and UniSwap ($500k of osETH-USDC).
Decentralization
How is this asset distributed amongst token holders? List the top 10 holders, the percentage of each holder, and tag any of them if they are known.*
The top 10 token holders are as follows:
| HolderAddress | osETH Balance | Entity |
|---|---|---|
| 0x57ba429517c3473b6d34ca9acd56c0e735b94c02 | 18,403.16 | Whale |
| 0xba12222222228d8ba445958a75a0704d566bf2c8 | 8,053.31 | Balancer |
| 0xe080027bd47353b5d1639772b4a75e9ed3658a0d | 2,431.19 | Whale |
| 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb | 598.251904 | Morpho |
| 0x71add67302162637bedcf47fd39b49fd5d321904 | 509.4525 | Whale |
| 0xd60f0a53c7e97f78fe4ac9013f5749920c601494 | 500.3975 | Opium |
| 0xc477024facfc3c0ae190d3d8ef90d36a53276eee | 200.145988 | Whale |
| 0xb5e4295546d3eec23fbb4a1b15fb40fb72b1413c | 148.144972 | Whale |
| 0x7f1400ec966be8d906afcbf04b0789c6f2b475e2 | 126.344455 | Whale |
| 0x341c05c0e9b33c0e38d64de76516b2ce970bb3be | 113.665774 | Index Coop (dsETH) |
List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs or DAOs.*
The contracts related to osETH are immutable, are not pausable, and does not have a blacklist/whitelist.
Smart contract risks
Codebase & On-chain Activity:
Provide a Github repository for the underlying token contracts and provide Etherscan links with verified contracts*
Provide a test suite with code coverage:
StakeWise V3 is on testnet on Holesky.
Give the age of the token in days and the number of transactions in the contract to date
osETH contract is 130 days old and has ~6.5k total transactions to date.
Security Posture:
What audits, if any, were performed? Provide links to the reports if they exist.
Audits were performed by Sigma Prime and Halborn - these are public and available here. Several other audits have been performed privately by companies integrating the StakeWise V3 protocol. There was also a public audit competition ran through Hats Finance, found here.
Does the project have an active bug bounty program?
Yes, $200k bug bounty available through ImmuneFI.
Provide emergency contacts with their responsiveness levels and response availabilities
Dmitri Tsumak (Founder and CTO): Telegram - response 24/7
Kirill Kutakov (Co-Founder): Telegram - response 24/7
Multi-Chain Strategy
Will the token include implementations on other networks?
Yes, StakeWise is finalizing the development work and audits for bridging osETH to other networks using Wormhole and follow the security standards as outlined by Wormhole: Wormhole
Token contract Behavior:
Does the token have more than one address1?*
Not on Mainnet.
Does the token use a compiler version greater than 0.8.0 or the SafeMath?
Yes, compiler greater than 0.8.0
During the execution of the token’s functions, does the token execute external code chosen by the caller or receiver?2 If so, please explain the reasoning behind this decision*
No
How does the token contract deviate from a standard implementation of ERC20? Any additional features that the Compound DAO should know about? Is it burneable?
No deviation, additional features, and osETH is burneable
Does the token contract have a fallback function? If so, when does it revert?3
No
Does it have a fixed supply? If no, who can mint?*
No, anyone who stakes into a StakeWise Vault is allowed to mint osETH - the platform is fully permissionless.
Is it a rebasing token?*
No, osETH is a repricing token (c-style).
Does the token charge fees on transfers?*
No.
Does it implement any transfer hooks? Or hooks on any method?
No
Is the contract performing arbitrary delegatecalls? If the answer is yes, indicate who can make these calls and to what contracts.
No
Is it flash mintable? If yes, please provide more information on this feature*
No
Is it flash loanable? If yes, please indicate who offers the service.*
No
What are the typical gas costs for calling each of the standard ERC20 functions?
~45,000 for a simple transfer, for example.
Price Feed Behavior
- osETH has a feed by Redstone with a 24hr heartbeat and 0.5% deviation threshold.
- osETH also has a native feed using the GetRate() function on the osETH Rate provider contract: 0x8023518b2192FB5384DAdc596765B3dD1cdFe471.
Upgradability:
Is it upgradeable?*
Contracts related to osETH are not upgradeable.
Which components are upgradable?
The Vault deployer contracts and the individual Vault contracts on StakeWise V3 are upgradeable. For a Vault contract to be upgraded, first the StakeWise DAO must approve an upgrade followed by the approval of the Vault admin. This ensures that entities that offer staking as a service via the StakeWise protocol are in full control of the upgradeability of their Vault smart contract.
. 