StakeWise
About
StakeWise is a decentralized liquid staking protocol for Ethereum and Gnosis Chain that enables users to stake ETH and receive osETH tokens, maintaining liquidity while earning staking rewards. The protocol offers customizable Vaults for institutions and individuals, with features like Boost for yield amplification and integration with DeFi ecosystems.
Where Does Yield Come From?
StakeWise generates yield in a few connected ways. Here is a breakdown of where the returns come from and how the money moves.
Core staking rewards. Users deposit ETH into Vaults (customizable staking pools run by operators). The deposited ETH is used to validate the Ethereum network, earning two types of rewards: consensus-layer rewards (the base rewards for running a validator) and execution-layer rewards (tips and fees from transactions). These rewards accrue daily to the user's osETH tokens — the liquid token you get in return for your deposit.
Operator fees. Vault operators take a cut from the staking rewards before they reach you — typically between 5% and 15% of the network rewards.
Boost (yield amplification). This is an optional strategy. You can use your osETH tokens as collateral on Aave (a lending protocol) to borrow more ETH, stake that borrowed ETH to earn more rewards, and repeat the cycle. This leverages your staking rewards — you earn rewards on borrowed funds too, but it also increases risk.
Additional yield sources.
- MEV (Maximal Extractable Value). The protocol captures extra value from block production (e.g., arbitrage or sandwiching opportunities) and distributes it to stakers.
- DeFi integrations. osETH tokens can be used in other DeFi protocols for lending, borrowing, or providing liquidity, earning extra returns on top of the staking rewards.
Protocol-level fees. The StakeWise DAO charges a 5% fee on the rewards earned by osETH holders (and osGNO holders on Gnosis Chain). This fee goes to the protocol treasury, not to individual users — it is deducted from your earned rewards.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Halborn03-04-2023 - 28-04-2023 |
| The audit uncovered one high-severity vulnerability that was fixed, along with several low-risk improvements. StakeWise accepted residual risks related to emergency-stop functionality and admin transferability as business decisions. |
Halborn26-06-2023 - 27-07-2023 |
| The audit found no critical or high severity vulnerabilities, with three medium/low risks accepted by the team, indicating a relatively secure codebase with minor acknowledged trade-offs around slippage protection and emergency controls. |
Sigma Prime01-08-2023 |
| Sigma Prime's audit uncovered critical and high-severity issues in StakeWise v3's migration logic and reward distribution, all of which were resolved before deployment, indicating a thorough security review and responsive remediation. |
Consensys Diligence29-01-2024 - 01-03-2024 |
| The audit revealed several medium-severity design and implementation issues, with no critical or high vulnerabilities found; however, the system's security heavily depends on proper admin governance and oracle trust assumptions. |
Sigma Prime01-06-2024 |
| The audit uncovered a critical reward‑theft vulnerability in Gnosis vaults, which the team addressed with an off‑chain swapper, leaving residual operational risk; other medium and low‑severity issues were largely resolved or acknowledged. |
Sigma Prime01-09-2024 |
| The audit identified three low-severity issues and one informational finding, all of which were acknowledged and resolved by the development team, indicating a robust security posture with no critical or high-risk vulnerabilities. |
ABDK Consulting02-09-2025 |
| All critical and major vulnerabilities were resolved, leaving only moderate and informational issues that do not pose immediate risks to protocol safety. The extensive review indicates a robust codebase with typical stylistic suggestions remaining. |
Statemind04-03-2026 - 20-04-2026 |
| No critical or high severity vulnerabilities were identified; the three medium issues have been partially addressed and the numerous informational findings largely resolved, indicating a generally secure codebase with some residual design considerations. |
Legal
Legal form
Free zone company (Creative Tech Free Zone Co.)
Registration jurisdiction
United Arab Emirates (Creative Tech Free Zone)
Status and notes
Terms of Service and Privacy Policy identify Creative Tech Free Zone Co. as the operating entity. Governing law: United Arab Emirates. Arbitration in London, UK under LCIA rules.