What is Diversified Staked ETH ($DSETH)?
The Diversified Staked ETH Index (dsETH) is an index token of the leading Ethereum liquid staking tokens. Along with providing a source of diversified staking yield, dsETH strengthens the Ethereum network with weightings that favor decentralized liquid staking protocols.
dsETH will enable token holders to access the best ETH liquid staking tokens through a single token, using a methodology that promotes decentralization and competition amongst provider protocols. dsETH will also be the first Index Coop product built on Index Protocol, a good-faith fork of Set Protocol v2 that is owned and operated by the DAO.
dsETH will be built on Index Protocol and contain Rocket Pool, Lido, and Stakewise liquid staking tokens. Lido’s stETH will be wrapped in order to accommodate its rebasing nature and Stakewise’s dual token model will be abstracted into a single set token so that staking rewards will accrue to a single ERC20. Flash Minting will also be enabled at launch, allowing users to deposit ETH or ERC20s and receive dsETH tokens in return.