unshETH

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 6 LSDs, with plans to support more.

Valuing unshETH

The amount of unshETH minted when depositing a supported LSD corresponds exactly to the amount of staked ETH underlying that LSD, so:

1 ETH “worth” of any of the LSDs = 1 unshETH

unshETH is redeemable into the basket of LSDs in its vault at the same:

1 unshETH = basket of LSDs in proportional ratio

All the underlying LSDs unshETH uses are the staked versions, so as the underlying LSDs accrue staking yield, unshETH accrues value. If the average annual ETH staking yield is 5%, then after 1 year:

1 unshETH = 1.05 ETH

unshETH APR

unshETH also serves as a liquidity hub for LSDs, allowing users to swap between LSDs up to their maximum weight. By holding unshETH, users earn ETH staking yield and swap fees. Additionally, there are small mint and redemption fees to protect unshETH holders value from arbitrage (explained more in vdAMM section) that accrue to unshETH holders. Thus, unshETH’s native real yield that users earn simply by holding the token is:

unshETH Real Yield APR = ETH Staking APR + Swap Fee APR + Mint/Redeem Fee APR

As unshETH is growing, LSD protocol governance tokens are used to incentivize unshETH TVL growth. Users can take unshETH and use it to earn additional incentives by depositing it into our farm:

Staked unshETH APR = unshETH Real Yield APR + USH Farm APR + LSD Partner Farm APR

unshETH is also a fully composable Omnichain ERC-20 token. Users can farm unshETH in Defi protocols by providing liquidity on Ethereum, or bridge it to BNB Chain to participate in Defi. For example, if a user were to farm unshETH-USDC liquidity pool on PancakeSwap:

unshETH-USDC APR = unshETH Real Yield APR + unshETH-USDC swap fee APR + CAKE farm APR

unshETH will continue its journey of integrating with defi primitives, enabling users on all supported chains to leverage unshETH for yield generation.

Configurable target weight and risk caps

unshETH has configurable target weights and risk caps for each supported LSD token. This feature allows the protocol to curb the risk exposure in the event of an LSD becoming unfavorable, de-pegged, or even slashed. In addition, the unshETH protocol has undergone an audit by Certik and Paladin and will continue to perform more audits.

Onmichain Support for unshETH

With our latest upgrade, unshETH is now an Omnichain token on both ETH Mainnet and BNB Chain. unshETH can be transferred for free across these chains, facilitating the effortless transfer of staked ETH millions of new users. Powered by our integration partner LayerZero, deploying unshETH across all major ETH Layer 1/2 networks (eg. BNB Chain, Arbitrum, Optimism, and zkSync) is now just a single click away. With this innovation, unshETH is poised to reach an even larger audience, enabling millions of users to tap into the vast untapped potential of billions of dollars in unstaked ETH.