Ethereum staking has become a core part of the network, but for developers and DeFi users, traditional staking often feels limiting. Locked funds, long exit times, and idle capital don’t fit well with fast-moving on-chain strategies. StakeWise approaches staking differently by introducing liquid staking that keeps assets flexible, composable, and fully non-custodial.
This article explains how StakeWise works, which networks and tokens it supports, and why it’s relevant for developers and crypto-native users building or interacting with modern DeFi systems.
What Is StakeWise?
StakeWise is a decentralized liquid staking protocol that allows users to stake assets while receiving liquid, yield-bearing tokens in return. These tokens represent the staked position and automatically reflect earned rewards.
Instead of choosing between:
- securing the network through staking or
- keeping funds liquid for DeFi
StakeWise allows users to do both at the same time.
Why Liquid Staking Matters for Developers
From a developer perspective, liquidity and composability are everything. Liquid staking transforms staked assets into primitives that can be used across protocols.
With StakeWise:
- Staked ETH doesn’t become inert capital
- Liquid tokens can be integrated into DeFi apps
- Users maintain flexibility without sacrificing staking yield
This makes staking-compatible assets easier to integrate into lending markets, AMMs, structured products, and treasury strategies.
Supported Networks
StakeWise is built primarily on Ethereum, leveraging its proof-of-stake consensus, validator decentralization, and mature DeFi ecosystem.
In addition to Ethereum, StakeWise supports EVM-compatible networks, including Gnosis Chain. This allows the protocol to extend its staking model beyond ETH while maintaining consistent mechanics and user experience.
For developers, this means:
- Familiar EVM tooling
- Wallet and smart contract compatibility
- Easier multi-chain integrations
Tokens in the StakeWise Ecosystem
StakeWise issues liquid staking tokens that track both principal and rewards.
osETH
- Represents ETH staked via StakeWise
- Automatically accrues staking rewards
- Transferable and DeFi-compatible
- Designed with over-collateralization and risk controls
osGNO
- Represents staked GNO on Gnosis Chain
- Follows similar mechanics to osETH
- Maintains liquidity while earning staking yield
These tokens behave as yield-bearing assets rather than static receipts, making them suitable building blocks for DeFi protocols.
Vault-Based Architecture
One of StakeWise’s most developer-relevant design choices is its Vault system.
Vaults are smart contracts operated by independent node operators. Each Vault exposes transparent parameters such as:
- Fees
- Performance metrics
- Operator strategy
Why this matters:
- Reduces centralization risk
- Encourages validator competition
- Improves fault tolerance
- Gives users and integrators more choice
For developers, Vaults provide a clear abstraction layer between staking logic and user-facing applications.
Security Model and Risk Awareness
StakeWise is designed with risk mitigation in mind:
- Over-collateralized liquid tokens
- Decentralized validator operations
- Transparent, auditable smart contracts
- Slashing risk distribution across operators
While smart contract and market risks still exist (as with any DeFi protocol), StakeWise aims to minimize the most common staking-related failure modes.
Developer Use Cases
StakeWise opens up several interesting integration paths:
- Lending protocols: accept osETH as collateral
- DEXs: create liquidity pools with yield-bearing assets
- DAOs: stake treasury ETH without losing liquidity
- Yield strategies: combine staking rewards with DeFi incentives
Because rewards accrue at the token level, integrations remain simple and composable.
Getting Started (User Flow)
From a user or developer testing perspective, the flow is straightforward:
- Connect a Web3 wallet
- Select a network and Vault
- Stake ETH or GNO
- Receive osETH or osGNO
- Use tokens across DeFi or hold for yield
No validator setup. No infrastructure maintenance.
FAQ
Is StakeWise non-custodial?
Yes. Users always retain control of their wallets and assets.
Can users exit staking at any time?
Liquid tokens allow exits without waiting for traditional unbonding periods.
Do rewards continue if tokens are used in DeFi?
Yes. Rewards accrue as long as the token is held.
Is there a minimum stake?
No strict minimum, making it accessible for small holders and testing.
What makes StakeWise different from classic staking?
Liquidity, composability, and modular architecture.
What risks should developers consider?
Smart contract risk, validator performance, and market volatility.
Final Thoughts
StakeWise represents a pragmatic evolution of Ethereum staking—one that aligns well with DeFi-native principles like composability, flexibility, and non-custodial control. By turning staked assets into liquid, yield-bearing tokens, it enables developers and users to treat staking as a core building block rather than a constraint.
If you’re building or interacting with DeFi on Ethereum, StakeWise is a protocol worth understanding—not just as a staking solution, but as infrastructure for more efficient on-chain capital.
