What is csETH?

csETH is an ERC-20 token, that represents a user's restaked ETH within the Ethereum blockchain, encompassing accumulated rewards, penalties from the consensus layer, as well as MEV and 'tips' from the execution layer.

While the quantity of csETH remains constant over time, the intrinsic value of the token escalates as on-chain rewards accumulate. Full realization of total gains occurs only upon the token's exchange on the secondary market (e.g. decentralized exchange) or when withdrawals. This type of token is commonly known as a reward-bearing token, and its underlying value is monitored through an exchange rate.

csETH is minted upon deposits and burned upon withdrawals. csETH is pegged at 1:1 to the price of ETH. The price of 1csETH should be roughly the same as 1 ETH.

Benefits of csETH

  • Users have full control over their ETH. There are no lockups or third parties restricting users from liquidating their ETH

  • There is next to none slashing risk due to the implementation of DVT within the protocol mechanism

  • csETH holders get fully liquid staking rewards on top of accruing uncapped EigenLayer points and CLAY points that represents each of these protocols' airdrop allocation

  • csETH is decentralized from ground up by distributing validation among multiple node operators insteads of relying on a single entity

DVT, MEV & Restaking

  • DVT enhances of node resilience, minimizing the risk of shrinkage for honest validators and promoting decentralization. DVT reduces the risk of a single node going offline, by distributing the validator function across several nodes. A situation that can have a huge impact on the security. ClayStack is the only protocol implementing SSV Network's DVT technology within its LRT architecure.

  • ClayStack validators utilize MEV extraction tools like MEV-Boost to maximize yields. These tools capitalize on the ability of validators to manage transaction order within their blocks, leading to additional profits. This proactive approach sets the standard for MEV utilization, benefiting all participants in the ClayStack ecosystem.

  • Claystack's csETH introduces re-staking functionality via EigenLayer, offering csETH holders the chance to earn EigenLayer points alongside CLAY points. By actively engaging in restaking on the EigenLayer protocol, Claystack presents users with diverse avenues for restaking participation.

In a nutshell, csETH is a highly modular and decentralized liquid restaking derivative that focuses on user experience, security and scalability for the staking ecosystem. The infrastructure and liquidity of csETH make withdrawals instant and facilitate staking of values as low as 0.01 ETH.

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