Stakehouse is a non-custodial automated market maker implemented for the Ethereum Consensus layer and staked ETH on Ethereum’s Execution layer. It is designed for users to reuse their staked capital and its yield in a permissionless way for further decentralized financial primitives (DeFi). Compared to other mechanisms currently available for staked asset liquidity, the Stakehouse protocol abandons any price peg or oracle dependency. Instead, it relies on the atomic dependency of minted tokens with the staked assets at the validator level. Stakehouse provides granular tracking of staked ETH performance in relation to minted derivatives in real-time.
Introduction & Mission
The Stakehouse protocol is a ground-up new smart contract framework built as a public benefit infrastructure around the Ethereum Deposit Contract and serving the Ethereum ecosystem at large. The architecture utilizes self-organizing registries to enable multichain asset portability of staked ETH without intermediaries. As a truly non-custodial and autonomous liquidity abstraction protocol, the Stakehouse protocol has no rent-seeking capability on its users’ assets.
The core mission of Stakehouse is to expand the economic bounds of Ethereum Proof of Stake to bring its benefits to the Ethereum ecosystem and its rollups. We believe that access to Ethereum staking is fundamental for building sustainable and fair financial inclusion products allowing high-impact social primitives to emerge. The Ethereum ecosystem will become a breeding ground of value-based coordination for permissionless markets. Stakehouse is intended, designed, and built as a neutral public infrastructure aligned with Ethereum's ethos of serving long tail users. Everyone should have permissionless access to ETH staking and validation markets. Staking and its benefits should be as easy, if not easier, than sending and receiving a token in DeFi.
Stakehouse is an automated asset liquidity manager for registered staked ETH validators. The mechanism design is based on the general constant of elasticity substitution. This prioritizes fungibility of tokens with atomic dependency on a per ETH basis within a validator for all minted derivative tokens. Stakehouse operates under the notion that capital efficiency comes from inventory reusability; all in protocol assets are fungible. Protocol tokens are minted in two categories dETH and SLOT. Each token represents its unique production functionality in the Ethereum proof of stake Consensus layer. This gives a productivity factor for a validator or group of validators’ staked ETH and is composable in any way that a user desires.
Stakehouse has three categories of users:
- Passive Users - Those who can’t afford to, or choose not to stake 32 ETH, but would like to gain access to staking rewards. They can do this by acquiring and holding dETH or SLOT directly. Alternatively, they could interact with a protocol that is composing these tokens.
- Stakers- These are solo stakers, DAOs, institutions, or any capital deployer who are looking for additional benefits beyond the traditional process of staking with the Ethereum Deposit Contract. These participants will have a safe and easy route for staking a validator in 60 seconds, and will enjoy the increased optionality of getting in on the base layer of Stakehouse.
- Active Users- This can be anybody or any protocol which wishes to actively participate, arbitrage, or simply use the staked ETH rewards for additional yield opportunities. The further Stakehouse gets out of sync, the more advantageous it is for market arbitrageurs to acquire ETH redemption rights or validator rights at a discount. DeFi protocols will gain an edge on competitors by incorporating multichain derivative ETH and blockspace ownership tokens.