Stake Market Landscape Transformation

Since 2020, the staking market has undergone significant changes. The demand for staking from institutional investors has been steadily increasing, while regulatory and compliance requirements have also become more stringent. Although some institutions stake through existing platforms, others still face internal restrictions.

Ethereum and its vast protocol ecosystem have been focused on solving scalability and stake centralization issues. At the same time, the demand for customization of reward structures among advanced users is also increasing.

To address these changes, a new generation of staking solutions has emerged. These solutions offer tailored, customizable, and modular new staking options for Ethereum, leading the industry.

Next-Gen Staking Solution: Empowering Ethereum Staking Infrastructure

The new generation staking solution expands the functionality of existing staking protocols on Ethereum, introducing the concept of staking vaults (stVaults), aimed at providing customized solutions for various use cases.

stVaults supports access to the liquidity of staked tokens in personalized settings, allowing users to set parameters such as verification, fee structure, and risk-reward profiles to meet the needs of different stakers.

Institution Friendly: Institutional stakers can:

1. Use stake tokens for liquidity
2. Keep funds in non-custodial contracts to ensure compliance.

Flexible Nodes: Allow nodes to customize solutions for high TVL clients to achieve higher income.

Yield Enhancement: Asset managers can quickly adapt to market changes, optimize capital efficiency, and seize emerging DeFi opportunities.

In the long term, all parties should establish a predictable, future-oriented, and value-based reward mechanism to contribute to the Ethereum ecosystem.

Technical Foundation: stVaults

stVault is a key smart contract that achieves non-custodial delegated liquidity staking through a single node operator and connects to the infrastructure to mint stake tokens.

The main goals of stVault include:

1. Allow users to customize the risk-return configuration of liquidity staking while maintaining the stability and substitutability of the staking tokens.
2. Achieve mutual designation between institutional stakers and node operators.
3. Optimize the integration of stake tokens

Institutional stakers can complete staking in a non-custodial manner and receive a certain proportion of staking tokens. When minting staking tokens, the corresponding amount will be locked. To unlock ETH withdrawals, the vault must destroy the necessary quantity of staking tokens.

To bear the risk of maintaining custom stake settings, the minting ratio of stake tokens will have a certain reserve margin determined by risk parameters. This ensures that the stake tokens minted through stVaults maintain a reasonable level of over-collateralization, enhancing their economic security.

stVaults is essentially a non-custodial stake platform that operates in parallel with existing core protocols. Any user can securely stake ETH through selected node operators and receive highly liquid staking tokens supported by personalized verification settings.

Customizable vaults meet diverse needs

stVaults provides flexible configuration options, allowing different builders to customize stake settings, optimize rewards, and develop tailored products while benefiting from the security and liquidity of stake tokens.

Institutional Staking: stVaults allows institutional users to create dedicated vaults, connect to specific node operators, configure integrations, and manage access permissions, supporting both custodial and non-custodial settings.

Leverage Staking: A tool for advanced stakers to implement leverage strategies, supporting both manual and automated smart contract operations. ETH can be obtained directly from the primary market or through secondary market DeFi lending platforms.

Re-Staking Risk Control: Introduces a selective participation shared security mechanism, allowing for the exploration of customized strategies and participation in re-staking without incurring socialized risks.

Infrastructure for the Future: Providing developers with a modular foundation to support the creation of staking products and tools that adapt to the ecosystem, seamlessly integrating with DeFi applications.

How to Strengthen Ethereum's Decentralization

Emerging Markets of Open Coordination and Competition

The new generation of staking solutions introduces stVaults, providing a modular and customizable staking framework that helps enhance the decentralization of Ethereum. Each stVault operates independently, reducing the Matthew effect of ETH nodes.

Balancing Liquidity, Performance, and Security

stVaults have mechanisms that balance capital efficiency, validator performance, and stake concentration. ETH bonds mitigate slashing risks, with optional dynamic fees associated with subsets of validators, helping to manage liquidity, assess performance, and support decentralization.

Voluntary Upgrades and Autonomy

stVault allows stakers to choose whether to adopt new features. Minting staked tokens means joining protocol governance, while redemption restores native staking. This seamless switching method maintains autonomy and respects the openness and decentralization of Ethereum.

Roadmap

The new generation staking solution aims to be a builder-centric product, enabling node operators, asset managers, and DeFi protocols to create the best user solutions. This strategy prioritizes providing the necessary tools and iterating together with partners and the community.

The launch plan is divided into three phases:

1. Early adopters build re-staking vaults using existing technology stacks, launching deposit pre-commitments and early access programs.
2. Deploy the test network and conduct rigorous testing and integration development with partners.
3. Mainnet launch, enabling key use cases including customized institutional settings, leveraged stake, and shared security configuration.

Summary

The new generation of staking solutions provides significant flexibility for institutional stakers through stVaults, allowing users to choose node operators and validation infrastructure. Stakers can customize strategies to meet their needs, optimize rewards, and fully leverage the liquidity, security, and integration advantages of staking tokens.

In the context of a more relaxed regulatory environment, institutional interest in Ethereum stake will further increase. The new scheme is specifically designed for institutional stakers, node operators, and asset managers:

• Institutional stakers can use customized settings to utilize staking tokens to meet internal compliance requirements.
• Node operators can design personalized products for large participants, providing features such as validator customization.
• Asset managers can develop future-oriented structured products, using stake tokens as the preferred collateral.

In addition, the new plan prioritizes the decentralization, liquidity, and security of Ethereum. Its design encourages healthy competition among validators while reducing governance and slashing risks. By balancing performance, liquidity, and risk, the new generation of stake solutions provides strong support for the Ethereum community and its long-term vision.