The LST Optimizer dApp facilitates the minting and burning of kETH via the smart-contract driven management of asset baskets (vaults).
There are three vaults that users can interact with on the dApp:
LST Vault - Users deposit supported LST or LSD tokens to receive kETH.
dETH Vault - Users deposit dETH to earn and receive ETH (or ETH equivalent).
kETH Vault - Users deposit kETH to earn BSN.
There are no additional fees for depositing or withdrawing funds.
Users can track their total funds deposited, their kETH, and their dETH on the homepage of the dApp.
The LST Vault is a basket of supported LSTs and LSDs represented by the kETH ERC-20 token.
In the LST Vault, users deposit Ethereum LSTs and LSDs and automatically receive kETH. As these deposited tokens generate staking yield, the value of kETH increases in proportion to the value they accrue (read more about how this works here)
kETH is a staked ETH unit giving a target rate. As long as a user holds kETH, they will earn rewards.
Users can view the LST Vault’s target rate at any time by turning on the Target APR toggle on the home page. The target rate represents the yield rate at which the LSD Vault's automated account manager is aiming for at any given moment.
Users can burn their kETH and redeem it for ETH (or ETH equivalent) by withdrawing it on the “Withdraw” tab. Users must wait for the deposit lockup period to end before they can execute withdrawals. The lockup timer resets to 15 minutes every time the user deposits, withdraws, stakes, unstakes, or transfers kETH in the LST Optimizer dApp.
In the dETH Vault, users deposit dETH and receive kwETH, which creates an auto curated basket of Stakehouse validators giving consistent yield.
The value of kETH increases in proportion to the staking yield accrued by the dETH in the vault.
Users can burn their kwETH and withdraw their funds and accumulated rewards as ETH (or ETH equivalent). Users must wait for the kwETH deposit lockup period to end before they can execute withdrawals.
In the kETH vault, users deposit kETH and earn BSN. BSN is a critical component across the Blockswap ecosystem.
Users can withdraw their kETH at any time. Every time the user deposits kETH into or withdraws it from the kETH Vault, their outstanding BSN rewards balance will automatically be claimed and sent to their wallet.
Users can claim their accumulated BSN rewards from the home page of the dApp.