Currently, DXdao has 1K ETH staked across multiple providers: 500 with Lido, 300 with StakeWise, and 200 with Rocket Pool. With another ~8.5k ETH still idle within the treasury, it is important for the DAO to consider investing these assets. Liquid ETH staking remains an optimal solution, providing ~4.5% returns with minimal risk vs other solutions, such as Aave, providing only ~0.4% APY.
There are early signs that the ETH staking network is getting congested, with validator queues reaching up to 3 weeks recently. As the demand for staking increases in the run-up to, and after the Merge, network congestion could increase further. It is an optimal time for DXdao to get ahead of the market and deploy further funds into ETH staking.
Whilst diversifying across staking providers is important, this proposal will focus on adding further ETH only to the StakeWise pool. Lido’s TVL has grown significantly since the first staking proposal and there are growing concerns about their size and the amount of leveraged ETH staked within their pool. On the other hand, Rocket Pool are having issues scaling given their current infrastructure model, with their staking pool frequently closed to any new deposits.
StakeWise has recently launched liquid staking on Gnosis chain and is currently the only liquid staking provider on the network. This provides DXdao with an opportunity to put further treasury assets to work in a liquid fashion.
As a reminder, StakeWise uses a dual token model - paying rewards in a separate token, rETH2 (rGNO), mapped to ETH (GNO) earned in the Beacon Chain. sETH2 (sGNO) represents the initial ETH (GNO) deposit into the staking pool and acts as an interest-bearing wrapped ETH (GNO). StakeWise has deep liquidity for both sETH2, rETH2 and sGNO, allowing DXdao to un-stake, with minimum slippage, should the need arise.
|Total ETH staked||~72k (Dune Dashboard)||~35K GNO|
Deploy a further 2k ETH and 255 GNO to StakeWise. DXdao will rely upon the Multi-Sig 0x9467dcFD4519287e3878C018c02f5670465a9003, which has already handled previous ETH staking proposals. Once the sETH2 and sGNO tokens are acquired, the MS shall return those funds to the mainnet DXdao treasury.
Stake natively via the StakeWise UI for both Gnosis and Ethereum.
Should DXdao stake ETH and GNO funds from the Treasury?