Going Multichain: Deploying osETH On Arbitrum

StakeWise
4 min readApr 23, 2024

Over the past few months StakeWise has built a strong liquidity profile for osETH, making it easy to trade the token at scale on Ethereum mainnet.

Now that this box is ticked, we can set our sights further — making sure that osETH is available not only on mainnet, but also on other chains bustling with user activity. It’s finally the time to go multichain.

We are beyond excited to announce that our first major stop on this odyssey is Arbitrum!

As a premier hub for LST liquidity on L2’s, Arbitrum is the perfect ecosystem for osETH to flourish and be extensively used by DeFi-native users.

We secured up to 500K $ARB as a grant from the Arbitrum Foundation (subject to certain conditions) to create deep liquidity for osETH on the network, and are pumped to get started with all the integrations ASAP.

In this blogpost, we share our plans for expanding osETH usage through Arbitrum and talk about the next steps for receiving the $ARB grant and deploying osETH on the network.

osETH Prospects on Arbitrum

Welcome to Arbitrum, where the allure of fast and cost-effective transactions has captivated the Ethereum faithful. With average transaction fees under $0.05 and swift confirmations, Arbitrum has already amassed over $13 billion in assets, and now, osETH is looking to join its thriving ecosystem.

Our strategy for launching osETH on Arbitrum mirrors our successful approach on the Ethereum mainnet — the first step is establishing a robust liquidity profile on prominent DEXs.

The network is already home to leading DeFi players such as Uniswap, Balancer, and Curve, alongside standout native protocols like Ramses Exchange. We’re particularly enthusiastic about Ramses because of its innovative ve-tokenomics and pools optimized for correlated asset pairs (e.g. LST-ETH). Our initial plan is to introduce an osETH-ETH pool on Ramses and expand our presence from there.

Once we’ve secured a strong liquidity base for osETH, our next steps include integrating our LST into major lending platforms like Radiant Capital and Aave. This integration will allow stakers to access credit, leveraging their staked ETH for borrowing stables, or increasing yield through osETH looping.

Our ultimate aim is to establish osETH as a preferred LST on Arbitrum, embedding it deeply within the ecosystem through a variety of useful integrations. This strategic expansion promises to enhance the value and utility of osETH for all users involved.

Making The $ARB Grant Official

When we zeroed in on Arbitrum as the launchpad for our Layer 2 expansion, we threw our hat in the ring with an ambitious grant application to the Arbitrum Foundation.

Our aim was to supercharge the osETH liquidity with a strategic boost from a sizeable $ARB grant, focusing on liquidity mining incentives. This initial push would then pave the way for us to sustain and build liquidity on our own. The full details of our bold plan are laid out in the application.

We’re thrilled to announce that the foundation has embraced our vision, awarding StakeWise a generous grant of 300K $ARB! This funding is earmarked for disbursing incentives over a 3-month period starting in early May, provided that StakeWise matches the funds over the subsequent 9 months — a standard term for such grants.

Since matching the incentives was a prerequisite for grant approval, our team decided to offer it on behalf of the StakeWise DAO, even before the community had cast their final votes. Now, we want all the SWISE holders to participate in an upcoming Snapshot vote to decide if we should proceed with matching the $ARB incentives as planned. The vote will go live on Wednesday, April 24th.

Should the community decide against matching the grant conditions, StakeWise is prepared to gracefully decline the grant and instead devise a new strategy to bootstrap osETH liquidity independently. While our team believes the $ARB grant offers a smoother path to integration within the Arbitrum ecosystem, we remain committed to aligning our actions with the StakeWise community’s preferences.

It’s important to note that our initial request from Arbitrum mentioned 500K $ARB, with 300K aimed at jump-starting osETH-ETH liquidity and the remaining 200K for osETH-SWISE liquidity. However, the latter request was connected to our tokenomics thinking at the time, which we believe is no longer the right path for SWISE, and therefore we suggest to opt out of it. A full report on this will be released later this week, giving our DAO members an opportunity to comment.

Timeline

The team is currently going through the KYC check with the Arbitrum Foundation, which is a requirement to be in the position to receive the $ARB grant. The StakeWise DAO vote on matching incentives will be launched on Wednesday and will last until Monday. The launch of osETH on Arbitrum is scheduled for early May.

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StakeWise

Liquid staking for DeFi natives, solo stakers, and institutions on Ethereum and Gnosis Chain. Stake from any node & stay liquid with osETH & osGNO tokens.