bETH
Diversified Staking for the DeFi Ecosystem
Bao Finance is excited to present bETH, a groundbreaking token designed to reshape the ETH liquid staking space by providing users with a diversified basket of Ethereum-based Liquidity Staked Derivatives (LSDs). With bETH, users can earn staking rewards on their ETH holdings without the need to manage multiple staking providers, all while enjoying the benefits of risk mitigation and reduced exposure to smart contract risks.
bETH is a novel token representing a basket of staked ETH tokens from various leading liquid staking providers. By pooling staked ETH tokens from different sources, bETH allows users to earn staking rewards without having to choose and diversify between staking providers individually. Instead, bETH holders can benefit from the diversity and decentralization between staking providers.
The composition of underlying assets in the bETH basket is managed by veBAO holders, who adapt the portfolio to take advantage of the evolving liquid staking market. As a result, bETH holders don't need to monitor and assess options for staking continuously.
Users can buy and sell bETH tokens on decentralized exchanges like Balancer or mint them directly with ETH on the Bao Finance platform. By depositing ETH into a smart contract, users receive bETH tokens representing a share of the total amount of ETH staked with various liquid staking providers.
bETH also serves as collateral in Bao Finance's Vaults, enabling users to access liquidity without having to sell their bETH tokens. By using bETH as collateral, users can unlock perfect loans and multiply ETH staking rewards by borrowing baoETH.
Additionally, users can earn extra Bao rewards by staking bETH liquidity in Bao Finance's gauges. Visit the app.bao.finance site and navigate to the gauges section for more information.
bETH offers numerous benefits for DeFi users:
- 1.Risk Mitigation: bETH's diversified basket of staked ETH tokens reduces users' risk by spreading exposure across multiple liquid staking providers.
- 2.Decentralization Support: By providing access to various staking providers, bETH fosters decentralization in the DeFi space, promoting growth and competition between protocols.
- 3.Collateralization: bETH can be used as collateral in Bao Finance's Vaults, allowing users to access liquidity without selling their bETH tokens.
- 4.Yield-bearing Opportunities: Users can earn passive income and rewards through staking bETH and providing liquidity.
To be included in the bETH basket, a project must meet the following criteria:
- Have liquidity on the Ethereum mainnet, with at least one supported pool allowing a $1m buy with less than 2% slippage.
- Be operational for at least 3 months.
- Use Chainlink price feed.
- Offer wrapped tokens that compound staking rewards to minimize gas costs.
- Be non-custodial.
Rebalancing or altering selection criteria can be initiated at any time through a governance proposal by anyone.
There will be no minting or redeeming fees. A 0.5% streaming fee will be collected, which is expected to be around 10% of the yield generated from ETH staking. The fees can also be adjusted at any time via governance.
The introduction of bETH by Bao Finance marks a significant milestone in the DeFi landscape, offering a unique solution to existing challenges and unlocking new possibilities for users. By providing a diversified basket of Ethereum-based LSDs, bETH enables users to experience increased flexibility and potential returns in the ever-evolving DeFi ecosystem.
Last modified 2mo ago