StakeWise v3 introduced one of the most innovative architectures in liquid staking: a permissionless vault system where anyone can create a custom staking vault with their own node operators, fee structure, and whitelist. osETH (overcollateralized staked ETH) is the universal LST that can be minted from any StakeWise vault, providing unified liquidity across diverse validator configurations.
Vault Architecture
In StakeWise v3, vaults are independent staking pools. A professional node operator can create a private vault for institutional clients; a solo staker can create a single-validator vault; a DAO can create a permissioned vault for its treasury. Each vault sets its own fee rate (competitive pressure drives fees down) and operator configuration.
Users stake ETH into a vault and mint osETH against their vault position at a 90% LTV (they can mint 0.9 osETH per 1 ETH staked). This overcollateralization ensures osETH always has more backing than its supply implies, providing a security buffer.
osETH Liquidity
osETH trades on Curve's stETH/ETH liquidity pool family and integrates with major DeFi protocols. Because osETH is overcollateralized, it has an additional safety margin compared to 1:1 backed LSTs — a validator slashing event reduces vault collateral but maintains osETH's peg more robustly.
SWISE Token
SWISE governs the StakeWise DAO, which maintains the osETH price oracle, manages the protocol fee (currently 5% of staking rewards), and approves vault configurations. SWISE stakers earn protocol fee distributions in ETH.
Institutional Use
StakeWise's vault model is particularly attractive for institutional stakers who want custom validator sets (specific geographic distribution, specific client software, specific operators) while still benefiting from a liquid token. Institutional vaults can be permissioned (whitelisted depositors only), satisfying compliance requirements.