Exciting news for all current and future Vault owners!
We are happy to announce the release of Vaults v3.0 — a major optional upgrade available to all the Vaults in StakeWise. 🎉
Vaults v3.0 is live and available as an optional update for all existing Vaults. Please note that upgrading to v3 Vaults also necessitates updating the operator service to version 2.0.7. This step is crucial to ensure smooth operation and avoid any potential issues during the transition.
In this article, we’ll take you on a deep dive into all the exciting changes — helping every Vault owner make an informed decision about upgrading to Vaults version 3.0.
StakeWise Boost
StakeWise Boost is a streamlined way to utilize the osETH token for generating additional rewards from staking.
With Boost, users can achieve up to 3x more rewards from staking, dramatically boosting their APY. Vault owners also benefit from offering Boost — every 1 osETH deposit into the strategy results in up to a 14x larger deposit into the Vault, significantly increasing Vault owner revenue.
Boost works by tapping into the Aave lending market, where it borrows and stakes additional ETH into the Vault on user’s behalf. The strategy is not impacted by changes in osETH value on DEXs, making it safe from liquidations for as long as the Boost APY is positive.
Users can access Boost using a dedicated tab on the Vault page in Vaults upgraded to v3.0. Users can exit Boost at any time, claiming their osETH deposit and rewards upon passing through the exit queue (which takes ~9 days).
We advise Vault operators planning to offer Boost to upload enough validator keys to their Vault in advance to ensure the smooth scaling of validators in the Vault alongside deposits into Boost.
The effect of Boost on rewards is not guaranteed. Users must monitor the APY to ensure that they are generating additional rewards (i.e. Boost APY is equal or larger than Vault APY), and withdraw assets from Boost if they’re not. The Boost tab will not appear in the Vault UI for new users if participating in Boost is not profitable.
The full details of the Boost’s mechanics are available in this release article.
New Exit Request Feature for Staked ETH/GNO
The EthOsTokenVaultEscrow and GnoOsTokenVaultEscrow contracts have been introduced to enhance flexibility for users with staked ETH and GNO. These contracts enable users to request an exit from the Vault without immediately burning their osETH or osGNO tokens.
This functionality is particularly useful for DeFi integrations, as it allows users to:
- Initiate the exit process from a Vault while deferring the osToken (osETH/osGNO) burn. By allowing users to initiate an exit without immediately burning their osToken, these contracts enable stakers to continue earning yield until they are ready to finalize the exit process. This maximizes the time osTokens are generating the yield.
- Once the unstaked ETH or GNO is ready to be claimed, users can complete the process by burning osToken and claiming their unstaked assets in a single transaction. The ability to claim unstaked ETH or GNO and burn osTokens in a single transaction reduces gas fees and makes the process more efficient, hence enhancing profits.
Thanks to osETH Escrow, users of Boost can avoid slippage when unwinding their large osETH positions via liquidity pools, instead tapping the exited ETH directly in the Vault. This leads to more rewards for Boost’s users, and simplifies exits from the strategy.
The full details of using osETH Escrow are available in the relevant documentation.
osETH Flashloans
The OsTokenFlashLoans contract has been added, allowing users to mint and burn up to 100k osETH in a single transaction. This is especially useful for leverage staking strategies, where OsTokenFlashLoans can be used to mint osETH, supply it to Aave, borrow ETH, mint additional osETH from the vault, and then repay the flashloan in one streamlined process.
This setup reduces the need for multiple transactions, lowering gas fees and execution risks. Beyond Aave, OsTokenFlashLoans can be integrated with other DeFi protocols, enabling users to maximize the utility of their staked assets.
Improved Functionality and User Experience
- When migrating from StakeWise V2, users will automatically receive the maximum possible amount of osTokens in the Genesis Vault.
- We’ve reverted to the exit queue processing method implemented in v1.0 Vaults, removing the totalExitingAssets parameter for a simpler staking experience.
- The enterExitQueue function will now return the maximum possible UINT256 value as a position ticket if the Vault has no validators and the assets are available for redemption.
- For the mintOsToken function, passing the maximum UINT256 value will mint the maximum possible osToken shares. If no shares are available for minting, the function will return 0.
Full details of the changes discussed above are described in the change log.
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.
Find the best way to stake ETH & GNO 👉 https://stakewise.io
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