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What is StakeSwap?
DEX + LSD, earn not just swap fee but staking reward
StakeSwap is an AMM-based DEX that liquidity providers can earn Ethereum PoS staking reward in ETH along with swap fee.
Forking from Uniswap V2 smart contract, StakeSwap provides same AMM-based DEX for liquidity providers and traders. Liquidity providers can earn swap fee and traders can swap token for another with plenty of liquidity!
StakeSwap acquires staking reward by staking pooled ETH to liquid staking services like Lido and Frax. This is an additional source of passive income for liquidity providers. Also, this doesn't affect AMM's bonding curve so traders have the same experience as if ETH is not staked at all.
Staking-related features are implemented in LSDAggregator contract.
Existing AMMs can only offer swap fees, while Liquid Staking Protocols can only offer staking rewards. This makes LPs have no choice but to choose between them. StakeSwap can provide both swap fees and staking rewards to LPs by liquid staking the ETH in the liquidity pool into protocols such as Lido and Frax.
This solution neatly solves the problem that many LPs faced of having to choose between providing liquidity to a AMM or staking their ETH on the Ethereum network for additional yield.
The reason this structure was not previously possible is that staked ETH on the Ethereum network could not be withdrawn. However, with the Ethereum 2.0 Shanghai upgrade, the ability to withdraw staked ETH has become possible, making our protocol feasible.
Last modified 6mo ago