Summary
Proposal to add the new osETH-rETH pool on Ethereum to the Gauge Controller. Adding CRV incentives will enable stakers of both StakeWise V3 and Rocket Pool to boost their yields and encourage the diversification of staked ETH.
References/Useful links:
Website: StakeWise / Rocket Pool
Documentation: StakeWise / Rocket Pool
Github: StakeWise / Rocket Pool
Medium Article: What is osETH?
Protocol Description
StakeWise was the first non-custodial liquid staking solution on Ethereum, launched in early 2021, with a little over 100k ETH currently staked. After over a year of development and testing, the V3 upgrade is now live on Mainnet. StakeWise V3 is the (Gnosis) Safe of ETH staking, a free public good that aims to fully democratize the staking ecosystem and greatly improve the decentralisation of staked capital. Any entity can offer trustless, non-custodial staking-as-a-service via an open marketplace that gives stakers the ability to delegate to their preferred operators/staking solutions.
StakeWise V3 features a liquid staking token, osETH, that any staker can mint to access DeFi. osETH minting is optional and can be done on-demand, for times when a liquid staking token is needed. The liquidity and integrations for osETH are provided by StakeWise DAO, creating a ready-made liquid staking ecosystem for any operator to plug into. The osETH token has in-built slashing protection due to its overcollateralisation and accrues yield from a highly diverse set of node operators.
The Rocket Pool (RP) protocol is a decentralized Ethereum 2.0 Proof of Stake infrastructure service. rETH is a redemption token representing staked ETH within Rocket Pool. This token can be burnt at the Rocket Pool contract or website in exchange for ETH and accumulated staking reward. Rocket Pool allows Node Operators to join in a permissionless fashion by depositing 8 ETH (plus RPL) as collateral per validator and receive RPL emissions, staking commission, and staking rewards on their own ETH.
Motivation
Curve is optimised for such a stable asset pairs and has a track-record of providing quality liquidity for LSTs. Given capital efficiency in liquidity pools is a key limitation to the current DEX model, this pool will allow LPers to benefit from staking yields on both assets. Combining this with the addition of the liquidity gauge will solve the issues of capital inefficiency.
Staked ETH tokens are becoming more ubiquitous across the ETH ecosystem as more ETH is staked and more DeFi protocols integrate LSTs. As such, providing efficient liquidity between different staked ETH tokens will become ever more important.
This pool will also encourage the diversification of staked ETH, with stakers of both StakeWise and Rocket Pool able to boost their returns by deploying their LSTs as liquidity into the Curve pool.
Specifications
1. Governance:
The StakeWise DAO is community owned with all voting rights falling to holders of SWISE, the StakeWise governance token. The majority of the protocol’s smart contracts are immutable. Contracts that are upgradable require a successful DAO vote followed by the approval of a Vault admin/owner to ensure users of the protocol retain full control over contract upgradeability.
Rocket pool adopts a two-DAO structure. More information can be found here.
2. Oracles:
StakeWise and Rocket Pool both rely on Oracle networks to accurately report validator balances to the protocol smart contracts. StakeWise has 11 leading commercial operators all acting under SLAs to ensure the Network runs efficiently (more information can be found here). Rocket Pool employs the services of multiple entities forming the OracleDAO - more information can be found here.
3. Audits:
StakeWise - Halborn and Sigma Prime (reports are here), alongside a public audit competition hosted by Hats Finance.
Rocket Pool - Consensys Diligence, Sigma Prime, and Trail of Bits.
4. Centralization vectors:
The Oracle Networks of both Rocket Pool and StakeWise form the main areas for centralisation of both protocols. To mitigate the risks, both protocols use a decentralised network of well-known entities in the space. StakeWise specifically has SLAs in place to hold Oracles accountable for their actions on the protocol.
5. Market History:
rETH has nearly 2 years of market history, price action and the markets for rETH can be found here.
As a new LST, there is no market history for osETH. The full liquidity strategy for osETH, as approved by the StakeWise DAO, can be found here.
Pool and Gauge
osETH-rETH Stableswap-ng Pool
Link to pool:0xe080027Bd47353b5D1639772b4a75E9Ed3658A0d
Link to gauge: 0x63037a4e3305d25D48BAED2022b8462b2807351c
UI:https://curve.fi/#/ethereum/pools/factory-stable-ng-15/deposit