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dETH and SLOT Relationship

To best utilize Stakehouse’s benefits, it helps to understand the relationship between the two minted derivative tokens dETH and SLOT. The main differences when framing dETH and SLOT Tokens are yield, fungibility, validator ownership rights, and supply positions.

Yield

dETH holds risk free slashproof staking rewards. SLOT tokens are at risk of slashing events and collect MEV rewards, gas fees and other validator benefits. These validator tokens (SLOT) have an unbound upper limit to cash flow opportunities. The rewards are proportional to SLOT token ownership within the Stakehouse. As more participants join Stakehouses, validator rewards increase (MEV, Gas fee, ect) while dETH rewards are determined by the Beacon Chain's current staking yield rate.

Validator Ownership Rights

dETH does not represent the validator ownership rights. SLOT tokens hold management right to the associated staked validator.

Fungibility

dETH is completely fungible across all Stakehouses and all L1/L2 blockchains. SLOT Tokens while redeemable are only fungible within their associated Stakehouse.

Supply Positions

Thinking of supply models, dETH are the liquid deposits (M1) and SLOT tokens are less liquid deposits (M2). Though SLOT tokens are less liquid but they can be quickly redeemed for ETH. As dETH is the liquid asset, SLOT can be thought of as the ledger which accounts for the dETH in circulation.