{"id":"stakewise-staked-eth-oseth","title":"StakeWise Staked ETH (osETH)","content":"**StakeWise Staked ETH (osETH)** is a [liquid staking](https://iq.wiki/wiki/liquid-staking) token representing [ETH](https://iq.wiki/wiki/ethereum) deposited in [StakeWise](https://iq.wiki/wiki/stakewise) Vaults, earning [validator](https://iq.wiki/wiki/validator) rewards. It can be [minted](https://iq.wiki/wiki/minting) against any [Ethereum](https://iq.wiki/wiki/ethereum) [node](https://iq.wiki/wiki/node), offering non-custodial, [permissionless](https://iq.wiki/wiki/permissionless) access to [staking](https://iq.wiki/wiki/staking). The token is overcollateralized to ensure accurate [decentralized exchange](https://iq.wiki/wiki/decentralized-exchange) pricing and protect holders from slashing risks. Users can [mint](https://iq.wiki/wiki/minting) osETH to access liquidity, use it in [DeFi](https://iq.wiki/wiki/defi), and redeem it for ETH when available. [\\[1\\]](#cite-id-0pXyZu4MpZ) [\\[2\\]](#cite-id-AaHlrBXw9o)\n\n## Overview\n\n![](https://ipfs.everipedia.org/ipfs/QmcGCTGVTdPnuxjmugxbYCySWn8p6NCtxzYZkKQQakoh5h)\n\nosETH is a [liquid staking](https://iq.wiki/wiki/liquid-staking) token representing [ETH](https://iq.wiki/wiki/ethereum) staked in Vaults and earning rewards from [validators](https://iq.wiki/wiki/validator). It can be [minted](https://iq.wiki/wiki/minting) against any [Ethereum](https://iq.wiki/wiki/ethereum) [node](https://iq.wiki/wiki/node), offering [permissionless](https://iq.wiki/wiki/permissionless) and non-custodial access to [staking](https://iq.wiki/wiki/staking), including [solo](https://iq.wiki/wiki/project-solo) [staking](https://iq.wiki/wiki/staking), and can be used in [DeFi](https://iq.wiki/wiki/defi). The token’s value increases over time as [staking](https://iq.wiki/wiki/staking) rewards accumulate, reflected in its fair exchange rate and [APY](https://iq.wiki/wiki/annual-percentage-yield-apy), net of [StakeWise](https://iq.wiki/wiki/stakewise) [DAO](https://iq.wiki/wiki/dao) fees. osETH is redeemable for ETH at an exchange rate determined by [StakeWise](https://iq.wiki/wiki/stakewise) [Oracles](https://iq.wiki/wiki/oracle), with instant redemptions when enough unbonded ETH is available and [validator](https://iq.wiki/wiki/validator) exits initiated if needed. Buyers of osETH on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) are insulated from individual Vault risks, while excess staked ETH protects 90% LTV Vaults, and 99.99% LTV Vaults require a 5M SWISE bond from operators to shield other holders from slashing and performance issues. [\\[1\\]](#cite-id-0pXyZu4MpZ) [\\[2\\]](#cite-id-AaHlrBXw9o)\n\n## Utility\n\nosETH provides utility by enabling users to unlock liquidity from staked [ETH](https://iq.wiki/wiki/ethereum) while maintaining control of their assets. It can be minted against ETH staked in Vaults and used [across](https://iq.wiki/wiki/across) [DeFi](https://iq.wiki/wiki/defi) applications such as trading, lending, and farming. As [staking](https://iq.wiki/wiki/staking) rewards accrue, the token’s exchange rate increases, capturing yield. Overcollateralization protects holders from slashing risks, and osETH can be redeemed for ETH through the protocol or on secondary markets. [Solo](https://iq.wiki/wiki/project-solo) stakers and [node](https://iq.wiki/wiki/node) operators can also [mint](https://iq.wiki/wiki/minting) osETH, supporting decentralized and [permissionless](https://iq.wiki/wiki/permissionless) access to [liquid staking](https://iq.wiki/wiki/liquid-staking). [\\[1\\]](#cite-id-0pXyZu4MpZ) [\\[2\\]](#cite-id-AaHlrBXw9o) [\\[3\\]](#cite-id-Ik5OOSrvW3)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=dQw4w9WgXcQ)$$\n\n### Minting\n\n![](https://ipfs.everipedia.org/ipfs/QmV717xQJYZv2XzEYYEbctuPVVmWkKqyrBZLmKti6PEtGW)\n\nosETH is minted by [staking](https://iq.wiki/wiki/staking) ETH in Vaults, allowing users to convert a [portion](https://iq.wiki/wiki/portion) of their stake into a [liquid](https://iq.wiki/wiki/liquid) token backed by staked ETH in [validators](https://iq.wiki/wiki/validator). The amount of osETH that can be minted depends on the value of the staked ETH, the current osETH exchange rate, and the collateralization rules set by the [StakeWise](https://iq.wiki/wiki/stakewise) [DAO](https://iq.wiki/wiki/dao). [Minting](https://iq.wiki/wiki/minting) requires excess backing to mitigate risks—either through overcollateralization in 90% LTV Vaults, where up to 90% of the [ETH](https://iq.wiki/wiki/ethereum) stake can be made [liquid](https://iq.wiki/wiki/liquid), or a SWISE bond in 99.99% LTV Vaults, where up to 99.99% of the stake is eligible. In both cases, ETH rewards continue to accrue on the full staked amount, but only a [portion](https://iq.wiki/wiki/portion) is made [liquid](https://iq.wiki/wiki/liquid) as osETH. [\\[2\\]](#cite-id-AaHlrBXw9o) [\\[1\\]](#cite-id-0pXyZu4MpZ) [\\[3\\]](#cite-id-Ik5OOSrvW3) [\\[4\\]](#cite-id-JzKRtWrjlK)\n\n### Burning\n\n![](https://ipfs.everipedia.org/ipfs/QmSM3rSCyjzpgTHUaBtrr8kVNwmZygx8UhPr43ni6C6Cq3)\n\nTo unstake [ETH](https://iq.wiki/wiki/ethereum) from a Vault, users must [burn](https://iq.wiki/wiki/token-burn) the osETH they previously [minted](https://iq.wiki/wiki/minting), which involves returning the token to the protocol so the associated staked ETH can be unlocked. The required burn amount includes the originally minted osETH plus a 5% fee on any rewards it accrued, set by the [StakeWise](https://iq.wiki/wiki/stakewise) [DAO](https://iq.wiki/wiki/dao). Fully burning osETH is necessary to fully exit a position; partial burns result in partial withdrawals, as the position must remain within the health thresholds defined for each Vault type (up to 90% for 90% LTV Vaults and up to 99.99% for 99.99% LTV Vaults). This ensures all osETH remains appropriately backed by staked [ETH](https://iq.wiki/wiki/ethereum). [\\[4\\]](#cite-id-JzKRtWrjlK)\n\n## Deprecation of V2 and Solo\n\n[StakeWise](https://iq.wiki/wiki/stakewise) V2 (on both [Ethereum](https://iq.wiki/wiki/ethereum) and [Gnosis](https://iq.wiki/wiki/gnosis) Chain) and StakeWise Solo (on Ethereum) were deprecated starting June 1, 2025. While users can still withdraw their assets after this date, [staking](https://iq.wiki/wiki/staking) rewards stopped accruing from the moment of deprecation. For StakeWise V2 users, this meant sETH2 (sGNO) tokens in their wallets no longer accrued rETH2 (rGNO) tokens as rewards. For StakeWise Solo users, their [validators](https://iq.wiki/wiki/validator) were exited after June 1, 2025, stopping the accrual of staking rewards. [\\[5\\]](#cite-id-db2yZjWuEa)\n\nTo continue earning rewards, [StakeWise](https://iq.wiki/wiki/stakewise) V2 users were advised to migrate their stake to StakeWise V3 by connecting their [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) holding sETH2 (sGNO) and rETH2 (rGNO) tokens to the StakeWise app and using the Migrate button. This process burns the V2 tokens and issues osETH (osGNO) tokens in return. To withdraw assets from [StakeWise](https://iq.wiki/wiki/stakewise) after deprecation, users must first migrate to StakeWise V3 and then use the Unstake tab in the interface. [\\[5\\]](#cite-id-db2yZjWuEa) [\\[6\\]](#cite-id-QSEaPgogVl) [\\[7\\]](#cite-id-MGTkB8bCyn)\n\n[StakeWise](https://iq.wiki/wiki/stakewise) Solo users who had previously rotated their validator(s)’ withdrawal credentials to a 0x01 address did not need to take further action to withdraw ETH; it was automatically deposited into their wallet upon [validator](https://iq.wiki/wiki/validator) exits. Users who had not rotated their credentials needed to follow a specific procedure first before their ETH was automatically deposited. To continue earning rewards after withdrawing their ETH, Solo users could deposit it into StakeWise V3, either via the app for [liquid staking](https://iq.wiki/wiki/liquid-staking) with osETH or into one of the Vaults in the StakeWise Marketplace. [\\[5\\]](#cite-id-db2yZjWuEa) [\\[8\\]](#cite-id-hvoSY2UyEr)\n\n## Recent News\n\nOn Monday, April 28th, 2025, the [StakeWise](https://iq.wiki/wiki/stakewise) [DAO](https://iq.wiki/wiki/dao) began incentivizing new [liquidity pools](https://iq.wiki/wiki/liquidity-pool) for osETH on [Balancer](https://iq.wiki/wiki/balancer). These included a Boosted osETH-ETH pool on [Ethereum](https://iq.wiki/wiki/ethereum) [mainnet](https://iq.wiki/wiki/mainnet) and a Boosted osETH-ETH pool on [Arbitrum](https://iq.wiki/wiki/arbitrum). These pools became the new flagship liquidity pools for osETH on their respective networks. [\\[9\\]](#cite-id-5Pz5NIdbGX)\n\nThe Boosted pools were selected for their ability to lend out spare ETH capacity on [Aave](https://iq.wiki/wiki/aave) to generate extra yield for [liquidity providers](https://iq.wiki/wiki/liquidity-providers). Approximately 90% of the [idle](https://iq.wiki/wiki/idle) assets in the pool can be committed to yield-generating opportunities while remaining available for swaps. For the osETH-ETH pools, [idle](https://iq.wiki/wiki/idle) ETH is automatically deposited into [Aave](https://iq.wiki/wiki/aave) to earn a lending [APY](https://iq.wiki/wiki/annual-percentage-yield-apy). Based on a recent [StakeWise](https://iq.wiki/wiki/stakewise) DAO decision, the new pools receive mostly ETH-denominated incentives, specifically using 75% osETH and 25% SWISE, which has the potential to allow the APY to exceed the network reward rate. Existing [liquidity providers](https://iq.wiki/wiki/liquidity-providers) in the legacy osETH-ETH pools on [Balancer](https://iq.wiki/wiki/balancer) were encouraged to migrate their liquidity to the new Boosted pools. [\\[9\\]](#cite-id-5Pz5NIdbGX)\n\nRisks associated with the Boosted pools include potential liquidity crunch on [Aave](https://iq.wiki/wiki/aave), [Aave](https://iq.wiki/wiki/aave) insolvency, and [Balancer](https://iq.wiki/wiki/balancer) Boosted Pool exploits. [StakeWise](https://iq.wiki/wiki/stakewise) considers the risk of a liquidity crunch on [Aave](https://iq.wiki/wiki/aave) to be low due to typical [ETH](https://iq.wiki/wiki/ethereum) utilization rates and overcollateralized borrows. The risk of [Aave](https://iq.wiki/wiki/aave) insolvency is also considered very low given its battle-tested code and performance. The risk of a [Balancer](https://iq.wiki/wiki/balancer) Boosted Pool exploit is deemed very low due to Balancer's increased attention to the security of Boosted Pools following earlier issues. [\\[9\\]](#cite-id-5Pz5NIdbGX)","summary":"StakeWise Staked ETH (osETH) is a liquid staking token that represents staked ETH, allowing users to earn rewards and participate in DeFi.","images":[{"id":"QmR5goLUjKzohjwgUyveMyerrdrf91Se6DqidvwsPKk5vk","type":"image/jpeg, 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to osETH and osGNO\",\"timestamp\":1750352125672},{\"id\":\"AaHlrBXw9o\",\"url\":\"https://docs.stakewise.io/stakewise-v3/oseth-and-osgno/how-it-works\",\"description\":\"How osETH works\",\"timestamp\":1750352125672},{\"id\":\"Ik5OOSrvW3\",\"url\":\"https://docs.stakewise.io/stakewise-v3/oseth-and-osgno/utility\",\"description\":\"osETH utility\",\"timestamp\":1750352125672},{\"id\":\"JzKRtWrjlK\",\"url\":\"https://docs.stakewise.io/stakewise-v3/vaults/vault-types\",\"description\":\"StakeWise Vault types\",\"timestamp\":1750352125672},{\"id\":\"db2yZjWuEa\",\"url\":\"https://stakewise.medium.com/announcing-deprecation-of-stakewise-v2-and-stakewise-solo-8d245d73696e\",\"description\":\"Announcement of V2 and Solo deprecation\",\"timestamp\":1750352125672},{\"id\":\"QSEaPgogVl\",\"url\":\"https://docs.stakewise.io/guides/stakewise-v2/migrate-to-stakewise-v3-on-ethereum\",\"description\":\"Guide to migrating V2 to V3 on Ethereum\",\"timestamp\":1750352125672},{\"id\":\"MGTkB8bCyn\",\"url\":\"https://docs.stakewise.io/guides/stakewise-v2/migrate-to-stakewise-v3-on-gnosis-chain\",\"description\":\"Guide to migrating V2 to V3 on Gnosis Chain\",\"timestamp\":1750352125672},{\"id\":\"hvoSY2UyEr\",\"url\":\"https://docs.stakewise.io/guides/stakewise-v2/change-solo-withdrawal-credentials-to-0x01-address\",\"description\":\"Guide to changing Solo withdrawal credentials\",\"timestamp\":1750352125672},{\"id\":\"5Pz5NIdbGX\",\"url\":\"https://stakewise.medium.com/oseth-liquidity-on-arbitrum-boosted-oseth-eth-pool-on-balancer-4092b8d2eded\",\"description\":\"osETH Liquidity on Arbitrum announcement\",\"timestamp\":1750352125672}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmVScou9s4N1b5UEHqrf6CiZecy6UhdMgRWYfqXBQjKvj6\""},{"id":"commit-message","value":"\"Add initial founding event for StakeWise Staked ETH (osETH) to the article's events 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