Proposed New PowerBasket: $LSTETH

An $LSTETH 10+ LST diversified basket to spread LST contract/multi-sig risk broadly w/auto harvesting of arbitrage gains & farming of extrinsic yields. Floating weights but max caps to protect decentralisation of LSTs/Validators. Basket NAV to include a liquid ETH Safety Fund to re-insure uncovered incidents of LST slashing, and smooth investor mints & redemption queues in conjunction with LST basket arbitrage operations. Fee stream (0.5%?) to be divided between PowerAgent Task fees (~0.2%), and the PowerPool Treasury (~0.3%). DAO will maintain white/gray/black lists periodically classifying 25+ candidate planned ETH LSTs and set basket max caps and manage Safety Fund size allocation parameters.

Post Shanghai, ETH staking & LST TVL will grow explosively…this $LSTETH PowerBasket is potentially easily a $100+ million TVL product.

After $LSTETH, PowerPool should eventually deploy many similar diversified LST baskets along with PowerAgent automated arbitrage, rebalancing and harvesting of extrinsic yield on many EVM POS chains. This ensures baseload tasks/fees to incent more nodes on each chain. Someday PowerPool could also launch a ‘blended’ pool-of-pool ‘flagship’ basket token like $PWRPOOL representing an actively-managed, diversified mix of L1 & L2 EVM POS LST baskets, with the $PWRPOOL basket of baskets regularly re-balanced by TVL…providing a very broadly diversified, multi POS chain LST real yield token that will be attractive to a wide range of institutions and small retail savers.

Example Twitter blurb:
Baskets with 10+ LSTs spread contract/multi-sig risk
Basket Safety Fund instantly tops-up any LST slashing coverage
2 sources of LST mint/redeem peg arbitrage benefit basket NAV/yield
Auto optimises extrinsic yield (& gas) on underlying LSTs
Better collateral than any one LST

Risk/Return Marketing Claims: (vs investing in a single LST)

Higher Yield:
Block reward exposure
Arbitrage gains in NAV (Safety Fund)
Average LSP fee compression-(<10%?)
Gas costs
+(cross staking - Eigenlayer?)

Lower Risk:
Near-instant match/withdrawal
Spreads (insured?) contract risk
(Re-)insured, reduced slashing risk (DVT)

Competitive Positioning
Passively-managed LST ‘indexes’ can spread smart contract risk on underlying tokens, but w/o offsetting their wrapper risk/fees. However, actively-managed, automated, 10+ LST PowerBaskets like $LSTETH add continuous peg arbitrage yield and optimised, automated, gas-efficient farming of underlying LSTs w/near-instant (ZAP-optimised) ETH mints/redemptions. → Higher yield and lower risk on ETH passive income compared with picking just 1 (out of ~25) LSTs and farming it yourself.


This is a very short synopsis of $LSTETH. For a much more detailed overview of the opportunity and go-to-market planning, and how all DAO members can contribute, please see the Project Wiki:

Project Wiki Link

{Ambassadors: please translate using text versions in Wiki Translators sections}


It’s an essential future PowerPool automated product

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Great idea! I can’t wait to get this PowerBasket working!

Sounds smart to me to be honest.

What are the plans for $100+ million TVL product creation on marketing side for this product ?
It can be a good opportunity but need to think on the spreading imo.

Pros for this offer.

That’s quite impressive and ambitious. Exactly what I expect it to be

Huge potential for sure, after LSTETH launch we should definitely have dozens of similar baskets

Marketing planning detail is available in the product Wiki. Pre-launch, the idea is to pitch ETH-rich DAO Treasuries, some of which are already holding/investing in LSTs, to act as prime minters (‘book-building’), with some type of management fee rebate (max fee rebate is achievable via xCVP staking). All PowerPool members can participate in pitching $LSTETH to other DAO Treasuries in which they participate. Long term, if we execute/deliver well, this a a global ETH-based small savers proposition to be marketed with retail partners and an un-branded minting widget as set forth in detail on the project Wiki

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