StakeWise is an Etheruem liquid staking service that allows anyone to benefit from staking yield that is run by secure and stable institutional-grade infrastructure.
StakeWise is a platform that lets you stake your ETH in the Ethereum 2.0 network and earn rewards. You can join the StakeWise Pool, which is a group of validators run by professional node operators, and get sETH2 and rETH2 tokens that represent your stake and rewards. sETH2 is a token that shows how much ETH you have deposited in the Pool. You get one sETH2 for every one ETH you deposit. rETH2 is a token that shows how much ETH you have earned as rewards from staking. You get one rETH2 for every one ETH you earn as rewards. These tokens are based on the ERC-20 standard, which means they can be transferred or exchanged with other tokens. You can use them to exit from staking or to access more opportunities to earn income in DeFi protocols. StakeWise charges a 10% fee on the rewards and uses Oracles to get the reward information from the Beacon Chain.
StakeWise prevents slashing and penalties by using various methods. It always enables slashing protection to prevent signing conflicting messages or missing duties, and it updates it whenever it upgrades its validators. It also uses failover nodes to prevent losing connection or missing blocks, and it switches servers quickly and smoothly if a server fails. Moreover, it monitors its performance closely on every attestation and proposal, and it uses alerts to detect and fix any issues with its applications.
StakeWise uses a special method to ensure that the funds in the staking pool are secure and can be withdrawn by the users. This method is called the Horcrux, and it is a secret key that can unlock the funds from the validators. The Horcrux is split into 7 pieces, and each piece is held by a trusted person in the Ethereum community. These people are called the Horcrux holders, and they will oversee the withdrawal process and make sure that StakeWise does not cheat or steal the funds. The Horcrux was created in a secret and safe way, using an open-source tool that was audited. The Horcrux can only be recreated if x of the 7 pieces are combined. Then, the Horcrux holders will approve the withdrawal and send the funds to a smart contract, which will distribute them to the users according to their stake and rewards. The specific x threshold is omitted for security reasons, but users should expect x to be in the range of 4 to 6 holders.