Proposal to Stake ETH with DXdao Treasury Funds

Overview

DXdao currently holds over 12k ETH in its treasury. Staking ETH gives DXdao an opportunity to help secure the Beacon Chain while retaining exposure to ETH and also receiving a reward for the staking.

Three proposed liquid staking options:

  • Lido
  • Stakewise
  • RocketPool
Lido Stakewise RocketPool
Token stETH sETH2 rETH
APY 4.9% 4.86% 4.77%
Fees 10% 10% 5-20%
Total ETH staked 1.4M 26k 2.6k
Suggested stake 50% 30% 20%

Lido is clearly the most established option, with over 1.4 Million Ether staked through the platform. Which also makes it easily acquirable through platforms such as Curve, Uniswap etc.

Stakewise, unlike the other options, uses a dual token model with a separate token for the staked ETH and the reward ETH. This, eventually allows to restake the reward tokens. See more: https://docs.stakewise.io/tokens

While just recently released, RocketPool is a very promising staking option as it aims to be fully decentralized. While the protocol is very “new” on mainnet, it has gone through extensive testing on testnets and has been audited by top-tier auditors. Allocating some ETH to RocketPool would also signal DXdao’s support for decentralized products.

Proposal

This proposal suggests deploying an initial amount of ETH, distributed between the three liquid staking options mentioned, with the following breakdown:

  • 50% on Lido for stETH
  • 30% on Stakewise for sETH2
  • 20% on RocketPool for rETH

For the purposes of staking the ETH, the DAO will rely upon the Multi-Sig 0x5F239a6671BC6d2bAEf6D7Cd892296e678810882, which has already handled all treasury diversification proposals as well as bridging funds to different bases. Once the given tokens are acquired the MS shall return those funds to the mainnet DXdao treasury.

This proposal also authorizes the MS to handle up to 500 ETH in one transaction for the purpose of staking it.

Acquiring the staked assets

Due to limitations on the tech-side and with an interest to move forward with the proposal in the near future, if it passes, the most pragmatic solution is to make use of the dev multi-sig.

Below are a set of ways we could acquire the assets, by either trading ETH for them or minting new tokens.

stETH:

  • Available on Curve ETH/stETH
  • Has Gnosis Safe integration

sETH2:

  • Has Gnosis Safe integration

rETH:

  • Wallet Connect / Gnosis Safe

More info

https://docs.lido.fi/
https://docs.stakewise.io/
https://docs.rocketpool.net/

Risks

Transfer of these funds relies on the Dev multi-sig. Moreover, the staking platforms themselves present risks.

Feedback

Please feel free to share your thoughts and/or suggestions in this thread.

Should DXdao stake ETH with funds from the Treasury?

  • Yes, let’s stake!
  • No.

0 voters

What should the initial amount of ETH be to be staked?

  • 500
  • 1000
  • 1500

0 voters

5 Likes

Proposal to Stake 1000 ETH with DXdao Treasury Funds

Overview

DXdao currently holds over 12k ETH in its treasury. Staking ETH gives DXdao an opportunity to help secure the Beacon Chain while retaining exposure to ETH and also receiving a reward for the staking.

Three proposed liquid staking options:

  • Lido
  • Stakewise
  • RocketPool
Lido Stakewise RocketPool
Token stETH sETH2 rETH
APY 4.9% 4.86% 4.77%
Fees 10% 10% 5-20%
Total ETH staked 1.4M 26k 2.6k
Suggested stake 50% 30% 20%

Lido is clearly the most established option, with over 1.4 Million Ether staked through the platform. Which also makes it easily available on platforms such as Curve, Uniswap etc.

Stakewise uses a dual token model, with a separate token for the staked eth and the reward eth. This, eventually allows restaking the reward tokens. See more: https://docs.stakewise.io/tokens

While just recently released, RocketPool is a very promising staking option as it aims to be fully decentralized. While the protocol is very “new” on mainnet, it has gone through extensive testing on testnets and has been audited by top-tier auditors. Allocating some ETH to RocketPool would also signal DXdao’s support for decentralized products.

Proposal

This proposal suggests deploying an initial amount of ETH, distributed between the three liquid staking options mentioned, with the following breakdown:

  • 500 ETH on Lido for stETH
  • 300 ETH on Stakewise for sETH2
  • 200 ETH on RocketPool for rETH

For the purposes of staking the ETH, the DAO will rely upon the Multi-Sig 0x5F239a6671BC6d2bAEf6D7Cd892296e678810882, which has already handled all treasury diversification proposals as well as bridging funds to different bases. Once the given tokens are acquired the MS shall return those funds to the mainnet DXdao treasury.

This proposal also authorizes the MS to handle up to 500ETH in one transaction for the purpose of staking it.

Acquiring the staked assets

Due to limitations on the tech-side and with an interest to move forward in the near future, if the proposal passes, the most pragmatic solution is to make use of the dev multi-sig.

Below are a set of ways we could acquire the assets, by either trading ETH for them or minting new tokens.

stETH:

  • Available on Curve ETH/stETH
  • Has Gnosis Safe integration

sETH2:

  • Has Gnosis Safe integration

rETH:

  • Wallet Connect / Gnosis Safe

More info

https://docs.lido.fi/

https://docs.stakewise.io/

https://docs.rocketpool.net/

Risks

Transfer of these funds relies on the Dev multi-sig. Moreover, the staking platforms themselves present risks.

1 Like