Stakewise Plans to Launch New Liquid Staking Token and Validator Marketplace

Stakewise, a project which allows users to stake their ETH without running complex software, is launching a third iteration with the hopes of competing with Lido Finance.

Stakewise V3 includes a new liquid staking token (LST) and a marketplace where validators can offer customized options to ETH holders looking to stake their tokens. These options range from MEV strategy to rewards.

A key concept for V3 is that its LST, osETH, will benefit from the network effects of having a single token, while allowing for a permissionless set of validators.

Centralization Concerns

This matters because Lido Finance, the leader in the LST space, has received criticism from many prominent leaders in the DeFi space because its validators control over 32% of the staked ETH. While Lido is working to broaden its validator network, it’s not yet permissionless.

Stakewise’s co-founder Kirill Kutakov hopes to fill to need for a more decentralized staking platform.

“With this system, what we present to the market essentially is this set of tools,” the co-founder said in an interview. “So solo stakers, or an organization that wants to run nodes on their own while having access to liquid staking, will have it.”

With roughly $200M in total value locked (TVL), Stakewise is the sixth largest LST provider on Ethereum. Lido is the clear leader with $18.8B.

Kutakov was also excited about the marketplace.

“We are also offering a public marketplace of vaults, spun up by different node operators or individuals, which is going to offer others the ability to stake ETH on their nodes and always have their LSTs liquid.”