ENS whitelisted the sETH2-ETH pool on UniV3 as part of its investment strategy. It is important to flag here that the incentives to this pool will cease alongside the imminent launch of StakeWise V3 and all liquidity incentives will transition to the protocol’s new liquid staking token, osETH.
This forum post outlines the DAO-approved liquidity strategy for osETH and there are two pools of relevance to highlight:
1) osETH-ETH - this will be the main liquidity pool incentivised using the native Balancer and Aura ecosystems and would represent a like-for-like transition from the sETH2-ETH pool.
2) osETH-rETH - an auxiliary pool on Curve, incentivised using the Curve and Convex ecosystems, that provides boosted rewards to holders of both osETH and rETH.
ENS should plan to whitelist the new osETH-ETH pool via Aura in replacement of sETH2-ETH. In addition, the osETH-rETH pool should be considered as an alternative way to increase the base staking yield for ENS as a holder of both rETH and osETH tokens.
On the topic of staking diversification, I first posted about the potential benefits of StakeWise V3 to ENS back in December 22. I am still a firm believer that DAOs should strive towards staking their own capital in a bid to help push the diversification of staked ETH, however there is an important use-case of V3 I wanted to re-highlight here.
ENS would be able to create a bespoke, private staking pool for its assets via StakeWise V3, partnering with its preferred node operators (whether it is commerical operators or trusted home stakers) and negotiating commerical terms, such as staking fees, MEV relays, EL/CL clients, slashing insurance, geographic location, etc… Even with such a bespoke staking configuration, ENS will still have the option to mint osETH should it wish to liquid stake its capital and farm DeFi.
This solution has the potential to save ENS significant costs, whilst also contributing to the diversification of staked capital away from Lido. Consequently, it should not only be considered for the 20% allocation to “other” staking providers but used to actively reduce Lido’s 70% allocation and appease the concerns of many regarding the lack of diversification.
Note, I am part of the Core Team at StakeWise and will be attending the Meta-Gov meeting later to discuss this further