Another exciting osETH opportunity is now live on Arbitrum!
Our osETH-wstETH liquidity pool on Ramses Exchange is the second addition to the list of farming opportunities available for osETH bridgooors. The osETH token is paired against wrapped stETH — the LST from Lido — to produce an additional source of liquidity for osETH and help LPs earn as many staking rewards as possible.
The full staking yield and trading fees are complemented by $ARB and/or $RAM incentives, to make LPing for the pool that more sweet 🍬.
In this guide, we will cover everything you need to know about providing liquidity to the osETH-wstETH pool on Ramses and getting rewarded for it — strap in!
Step-by-step guide to deploying liquidity on Ramses Exchange
- Bridge osETH & ETH to Arbitrum using the StakeWise Bridge. It is recommended by StakeWise as the bridging solution of choice for osETH. Read our full guide on using the StakeWise Bridge for bridging assets to Arbitrum.
PS. You will need ETH for paying for transactions on Arbitrum. You can also swap ETH for wstETH on Ramses once bridged if you don’t currently own wstETH. - Navigate to the osETH-wstETH pool page on Ramses Exchange.
- Ramses requires users to concentrate liquidity in custom or preset price ranges around the current price. If you are not an expert at providing liquidity to LST-LST pairs, press on the Aggressive Range Type — this will add liquidity in a 2% range in both directions vs the current price, which is a safe bet for this asset pair which runs a really low impermanent loss risk. If you are an expert at providing liquidity, you will know what to do!
- Enter the amount of osETH or wstETH tokens you want to add as liquidity, and the interface will show you how many other tokens you need to deposit. Depending on the price range you choose, Ramses interface will ask you to deposit osETH and wstETH in different proportions of the whole. When choosing the Aggressive Range Type, the value of liquidity between osETH and wstETH (not the unit amount) will be balanced around 55:45 in favour of osETH.
- Press Add Liquidity and approve wstETH and osETH for spending when requested, then confirm the transaction. Once done, you will start providing liquidity to this token pair!
The $ARB and/or $RAM incentives, as well as the trading fees, will be earned automatically by your position.
Don’t forget to periodically claim everything you earned by pressing Claim and Claim LP Rewards in the Dashboard section of the Ramses UI!
Ramses Explained
Ramses Exchange is a decentralized exchange that launched on Arbitrum in February 2023 and currently handles ~$50M in daily volume. Since its launch, Ramses has become one of the leading DEXs on Arbitrum and currently commands about $25M TVL.
Technically, Ramses is an enhanced fork of Uniswap V2 — it stands out for its added support for concentrated liquidity and addition of a unique veRAM incentives model that directs new $RAM (protocol’s token) emissions towards pools chosen by $RAM stakers (veRAM holders). In short, it combines successful concentrated liquidity design with the most popular DEX tokenomics in crypto.
Our choice of hosting an osETH-wstETH pool on Ramses has been dictated by the protocol’s strong standing in the Arbitrum community, as well as the goal to diversify liquidity sources between multiple DEXs (Balancer being another one).
Receiving $ARB and/or $RAM incentives from this pool does not require staking Ramses LP tokens — instead, the rewards accrue automatically, and need to be claimed from the Dashboard. In the future, incentives might be switched to a mix of $SWISE and $RAM tokens.
Pricing formula
The pricing formula in Ramses’ concentrated pools follows the infamous Uniswap invariant where x*y=k, yet allows LPs to concentrate liquidity only on the portion of the pricing curve if they so desire. Hence, every concentrated position effectively follows its own constant product function (xy=k) within the limits of its range.
For more information about Ramses’ pricing formula, take a look at its docs.
What to think about as an LP (risks/rewards)
The key consideration here is whether LPs are happy taking price exposure to osETH against wstETH, alongside the associated smart contract risks of StakeWise, Lido, and Ramses. The two assets are highly correlated, enjoying a stable peg vs ETH and increasing in value at roughly the same rate (staking APY is similar across both protocols). This makes liquidity provision for them relatively straight-forward, as the price range does not need to be adjusted often to stay in range.
The proportion in which assets are being traded in the liquidity pool are very unlikely to frequently change even amid the addition and removal of concentrated liquidity positions, because the price of assets relative to each other is expected to stay rather stable. Note also there is an option to add or remove single-sided liquidity on Ramses — however, this may come with a certain amount of slippage, which is particularly high at the pool’s launch.
StakeWise makes staking ETH and GNO simple and secure! Pool ETH with others or go solo — no matter how you stake, you stay liquid with osETH and osGNO tokens.
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