StakeWise announced a major upgrade yesterday which is relevant for the planned sETH2 integration. StakeWise is undergoing a major upgrade and will soon transition to a fully permissionless protocol in a new model for liquid staking. The main goal is to combat the current centralisation we see on the Beacon Chain. Full details of the announcement can be found here, but to quickly summarise the relevant points for our integration:
- StakeWise will be transitioning from the current dual token model to a single token model. The integration plans for sETH2 are consequently on hold during this transition phase as we will look to make osETH (overcollateralised staked ETH) the main staked ETH token going forward. A robust roadmap is in place to ensure an efficient transition to the new staked ETH token alongside the necessary liquidity requirements for integrations such as Aave.
- The upgrade brings major changes to StakeWise, such as the introduction of permissionless node operators. Whilst the motivation for adding StakeWise’s staked ETH to Aave still remains, many of the items detailed in the specification, risk assessment and security considerations above will change. Given this, a fresh proposal will be submitted nearer the token transition date, alongside a new initial snapshot.
osETH will be the first of its kind and will set a new benchmark for both security (through its in-built slashing protection) and decentralisation for staked ETH tokens. We look forward to the launch of StakeWise V3 and the ability to bring ETH staking diversity to Aave in the very near future.