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StakeWiseStakeWiseby0x009515EfabCcdBAfA485f3919d94C85Ff23Ba75Dstake.com✅.eth

Is the backwards integration with blockscape (staking stETH) a risk? (recursively staking ETH?)

Voting ended over 2 years agoSucceeded

So, many of us are of course staking stETH on https://blockscape.org 's non custodial staked eth staking portal, but it got me wondering...

If a user: stakes ETH on Stakewise, to receive stakewiseETH, then stakes stETH on blockscape, and because of the way blockscape credits the yield, we can immediately restake any earnings into more stakewiseETH, and getting a kind of snowball-effect this seems like a possibly leveraged staking situation, and could be a risk to the ecosystem?

I propose we conduct a review to make sure this is not a risk to the LIDO ecosystem, and if it is, we should prohibit stETH being used in this way via a contract update.

Off-Chain Vote

possible risk
1.39K SWISE100%
not a risk
0 SWISE0%
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Timeline

Nov 11, 2023Proposal created
Nov 11, 2023Proposal vote started
Nov 14, 2023Proposal vote ended
Nov 14, 2023Proposal updated