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unshETH

DEFI
A decentralized, on-chain movement for improving validator decentralization

Core Concept of unshETH

unshETH is a novel DeFi primitive that promotes validator decentralization by fostering competition among ETH liquid staking protocols to bring the best ETH staking experience to millions of users. unshETH's mission is simple — decentralization through incentivization.

Through incentive engineering, unshETH aims to distribute capital across the LSD ecosystem in a manner that prioritizes validator decentralization.

LSDfi

LSDfi refers to a new class of DeFi primitives that are built on top of liquid staking derivatives (LSDs) in order to enable markets on staking yields, validator monopolies, slashing risks, and even validator censorship.

LSDfi enables use cases such as validator decentralization mining, validator dominance options, interest rate swaps, yield speculation, and efficient risk pricing. These mechanisms allow users to take advantage of the unique properties of liquid staking derivatives, and can similarly be used to improve healthy competition among validators and restrict capture of the consensus layer.

In other words, unshETH is a diversified liquid staked ETH basket that earns staking ETH yield and swap fees, all wrapped in a single ERC-20 token. unshETH is also an Omnichain token on both ETH Mainnet and BNB Chain that can be transferred for free across chains.

Users can mint unshETH by depositing a supported ETH liquid staking token (LST or LSD), and can redeem unshETH into the basket of underlying LSDs. unshETH currently supports the four largest LSDs: wstETH, cbETH, rETH, and sfrxETH, with plans to support more..

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