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2 changes: 1 addition & 1 deletion CLAUDE.md
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Expand Up @@ -75,7 +75,7 @@ import { CommandSnippet, CheckItem, Tooltip } from '@site/src/components';

**Images** — `import Image from '@theme/IdealImage'` then `<Image img={require('./img/foo.png')} alt="foo" />`. The theme override (`src/theme/IdealImage/index.tsx`) adds a `sources={{light, dark}}` prop for theme-aware screenshots.

**Links** — external links get a `↗` suffix, internal cross-references a `→`: `[Automated Node Setup →](/operator/manage-validators/automated-node-setup)`, `[app.stakewise.io ↗](https://app.stakewise.io)`. `src/theme/CustomLink/CustomLink.tsx` handles `target`/`rel` automatically, so never write raw `<a target="_blank">`.
**Links** — external links get a `↗` suffix: `[app.stakewise.io ↗](https://app.stakewise.io)`. Internal cross-references take no suffix — `[Automated Node Setup](/operator/manage-validators/automated-node-setup)`. Older pages still carry a `→` suffix on internal links; that convention is being retired, so don't add new ones, and drop them from any page you rewrite. `src/theme/CustomLink/CustomLink.tsx` handles `target`/`rel` automatically, so never write raw `<a target="_blank">`.

## Operator docs are version-split

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2 changes: 1 addition & 1 deletion docs/docs/ostoken/how-ostoken-works.mdx
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Expand Up @@ -24,7 +24,7 @@ Together, these mechanisms keep osToken safe to hold and use.

There are three ways to get osToken:

- [Stake on the main app page](/staker/simple-staking) — the ETH is routed through a [MetaVault](/docs/vaults/meta-vaults) that distributes deposits across the best-performing Sub-vaults (currently just the [Genesis Vault ↗](https://app.stakewise.io/vault/mainnet/0xac0f906e433d58fa868f936e8a43230473652885)), and osToken is minted against the stake automatically.
- [Stake on the main app page](/staker/simple-staking) — the ETH is routed through a [MetaVault](/docs/vaults/vault-types#metavault) that distributes deposits across the best-performing sub-vaults (currently just the [Genesis Vault ↗](https://app.stakewise.io/vault/mainnet/0xac0f906e433d58fa868f936e8a43230473652885)), and osToken is minted against the stake automatically.
- [Pick a specific Vault from the marketplace](/staker/vault-staking) — stake into it, then optionally mint osToken against the stake.
- Buy osToken on a DEX.

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4 changes: 2 additions & 2 deletions docs/docs/ostoken/ostoken-redemptions.mdx
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Expand Up @@ -53,7 +53,7 @@ It then checks whether there's enough queued osToken to submit a new redemption.

### 4. Operator Service Submits a Redemption

The Operator Service downloads the published list from IPFS, picks a batch of eligible positions, and decides how much to redeem from each. If a target Vault is a MetaVault without enough liquidity on hand, the Operator Service first pulls assets up from Sub-vaults via a separate `redeemSubVaultsAssets` transaction. It then refreshes the state of the target Vaults in a separate multicall transaction, builds a Merkle multiproof against the published root, and calls `redeemOsTokenPositions` on `OsTokenRedeemer` for each position.
The Operator Service downloads the published list from IPFS, picks a batch of eligible positions, and decides how much to redeem from each. If a target Vault is a MetaVault without enough liquidity on hand, the Operator Service first pulls assets up from sub-vaults via a separate `redeemSubVaultsAssets` transaction. It then refreshes the state of the target Vaults in a separate multicall transaction, builds a Merkle multiproof against the published root, and calls `redeemOsTokenPositions` on `OsTokenRedeemer` for each position.

The state refresh is only possible because the Oracles have voted on and signed a rewards root: a Vault that has fallen more than one reward update behind cannot be redeemed from until it is harvested against that root. See [Reward Distribution](/docs/oracles/oracle-duties#reward-distribution).

Expand All @@ -63,7 +63,7 @@ The redemption is now in flight; verification and execution happen on-chain.

A Vault can only pay out what it holds in liquid assets, so a redemption is capped by the Vault's withdrawable balance. Operator Services set aside the assets their Vaults owe to the redeemer before registering new validators, which normally keeps enough on hand. When it does not — the Vault has everything staked, or its Operator Service is unresponsive — the [Oracle network](/docs/oracles/oracle-duties) steps in and forces validator exits until the queue can be filled.

This is the same enforcement that backs the [Vault exit queue](/docs/vaults/how-vaults-work#validator-exits), applied to redemption demand instead of withdrawal requests.
This is the same enforcement that backs the [Vault exit queue](/docs/vaults/how-vaults-work#withdrawals), applied to redemption demand instead of withdrawal requests.

:::custom-notes[Under the Hood]
Every cycle, each Oracle records the redeemer's cumulative exit queue ticket. It then looks up the ticket as it stood one forced withdrawals period ago and calls `getExitQueueMissingAssets` on it — whatever is still unfilled after that grace period is a shortfall the Vaults have to cover.
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94 changes: 30 additions & 64 deletions docs/docs/vaults/boost.mdx
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@@ -1,102 +1,68 @@
---
title: Boost
description: Amplify staking rewards up to 3x with StakeWise Boost. Learn how osToken looping on Aave works, safety mechanisms, and how to boost/unboost.
description: Amplify staking rewards with StakeWise Boost. Learn how osETH looping on Aave works and the safety mechanisms behind it.
---

import Image from '@theme/IdealImage'

# Boost
StakeWise Boost is a one-click yield amplification strategy that uses osETH as collateral to borrow additional ETH on Aave and restake it in the Vault. The process repeats multiple times, resulting in a single staking position. Boost's rewards are the surplus from the extra staked ETH's rewards, after the Aave borrowing fee. StakeWise charges no additional fee for using Boost.

StakeWise Boost is a yield amplification strategy that profits from the difference between the extra staking rewards and the cost of sourcing additional ETH. Boost uses osETH as collateral to borrow additional ETH on Aave and stake it again, creating a "looped" process that amplifies your staking position:
<Image img={require('./img/boost_flow.png')} alt="Boost flow" />

- **6x looping** in Vaults with 90% LTV
- **14x looping** in Vaults with 100% LTV
- **Up to 3x boost** in staking rewards compared to normal staking
Boost executes automatically in a few steps:

Over the mid term (6+ months holding period), Boost historically generates ~1–3 percentage points above the base staking rate, depending on the spread between staking rewards and Aave borrow rates, for a total APY of approximately **4–6%**.
1. The staker deposits osETH into [Boost via the Vault or Stake page](/staker/boost#how-to-boost).
2. Boost uses the osETH as collateral on Aave to borrow ETH against it.
3. The borrowed ETH is staked in the Vault, which mints new osETH.
4. Steps 2–3 repeat, increasing the amount of ETH earning staking rewards.

## How Boost Works
<Image img={require('./img/boost_reward_flow.png')} alt="Boost reward flow" />

Built into every Vault by default, Boost combines your original deposit with ETH borrowed from Aave into a single staking position.
You deposit osETH into Boost via the Vault or Stake page.
Boost then uses your osETH as collateral on Aave to borrow additional ETH.
The borrowed ETH is staked in the Vault on your behalf.
This process repeats automatically.
The magnitude of amplification depends on the Vault's osETH LTV (how much osETH can be minted per unit of ETH staked), distinct from Aave's borrow LTV:

<Image img={require('./img/stakewise_boost_money_flow.png')} alt="Boost flow explanation" />
- **6x looping** in Vaults with 90% osETH LTV
- **14x looping** in Vaults with 100% osETH LTV

Staking rewards are earned on the entire amount — so even after deducting Aave interest and operator fees, your net rewards are far greater than staking your original deposit alone — and StakeWise charges no additional fee for using Boost. Boost does not rely on the secondary market for repaying debt, so your strategy profit is not affected by slippage during exits.
Over the mid-term (6+ months), Boost has historically added **~1–3 percentage points** over the base staking rate, for a total APY of roughly **4–6%**.

Boost replaces 40+ manual steps with a single click, allowing even novice users to amplify their staking rewards without navigating the complex DeFi landscape —
with exposure limited to the node operators of your chosen Vault and the smart contracts of StakeWise and Aave.
:::custom-tips[Get Started With Boost]
To start using Boost right away, see [this guide](/staker/boost).
:::

## Safety

### Price Stability Protection

Boost eliminates depeg-related liquidation risks through Aave's use of StakeWise's native price feed for osETH instead of volatile secondary market prices. This means osETH price fluctuations on DEXs cannot trigger liquidations, as your collateral value always equals the osETH redemption value rather than market price. This design ensures that temporary market volatility doesn't endanger your boosted position.

### Safety Mechanisms

LTV (Loan-to-Value) is the ratio of your borrowed amount to the value of your collateral. For example, at 93% LTV, you can borrow 0.93 ETH against an osETH deposit worth 1 ETH.
Three key LTV metrics determine how safe your boosted position is:

**Max LTV**: 93% – the maximum you can borrow against your osETH collateral when initiating a loan

**Current LTV** – the value of your loan relative to your collateral right now, influenced by the Aave borrow rate and osETH APY over time

**Liquidation Threshold**: 95% – the point at which a position is considered undercollateralized and subject to liquidation
The biggest risks for a typical leveraged position are **collateral depeg** and **LTV drift toward liquidation**. Boost mitigates both by design.

The 2% gap between Max LTV and Liquidation Threshold acts as a safety buffer, providing substantial protection before any liquidation risk.<sup><a href="#fn-1" id="fnref-1">1</a></sup>
**No depeg liquidations.** Aave values osETH using StakeWise's native price feed rather than volatile secondary-market prices, so collateral is always worth what osETH can be redeemed for. This removes depeg as a source of liquidation.

![danger_zone](./img/danger_zone.png)
**A built-in LTV buffer.** If borrow costs ever exceed staking rewards, debt grows faster than collateral and LTV drifts upward. Boost has a 2% buffer between the Max LTV (93%) and the Liquidation Threshold (95%) on Aave, which gives it room to absorb sustained negative spread without a liquidation. For historical data, see the [blog post ↗](https://blog.stakewise.io/caseStudy/how-stakewise-boost-keeps-your-rewards-juicy-and-your-stake-safe). On Aave, LTV is the ratio of borrowed value to collateral value, and three numbers bound the position:

Current LTV and Liquidation Threshold are the key variables for maintaining a healthy borrow position and avoiding liquidation.
- **Max LTV (93%)**: the most that can be borrowed against the collateral when opening a loan.
- **Liquidation Threshold (95%)**: the point at which the position becomes undercollateralized.
- **Current LTV**: where the position sits now, drifting with the spread between staking APY and Aave's borrow APY.

### Automatic Unboost
In normal markets the drift goes the safe way: staking rewards outpace borrow costs, so collateral grows faster than debt and LTV decreases over time.

As an additional safety layer, Boost includes an automatic unboost mechanism that activates when positions approach the liquidation threshold. When any boosted position reaches 94.5% LTV, anyone in the community can trigger an automatic unboosting transaction to protect the user.
The StakeWise core team actively monitors all boosted positions and will trigger these protective exits when necessary, with all funds always remaining under the original owner's control.
**Automatic unboost.** As a final safeguard, when a position reaches **94.5% LTV** anyone can trigger an unboosting transaction on the holder's behalf, and the StakeWise core team monitors positions to do so when needed. Funds always remain under the holder's control, and since Boost never relies on the secondary market to repay debt, exits aren't exposed to slippage.

## Risks & Limitations
Smart-contract exposure is limited to the regularly audited StakeWise and Aave contracts.

Two market-driven conditions can affect your Boost position:
## Market Conditions

### Borrow APY Exceeds Staking APY
Two market-driven conditions can affect a Boost position.

Boost APY depends on the spread between your Vault's staking APY and Aave's variable WETH borrow APY.
Boost APY is positive when the borrow APY is lower than the staking APY, and negative when the borrow APY exceeds the staking APY.

When the borrow APY is lower than the staking APY, your LTV gradually decreases, making your position progressively safer.
When the borrow APY exceeds the staking APY, your LTV gradually increases.
**When borrow APY exceeds staking APY.** Boost APY depends on the spread between the Vault's staking APY and Aave's variable WETH borrow APY: it's positive when borrow APY is below staking APY, and negative when it exceeds it. The current WETH variable borrow APY can be monitored in the **Borrow Info** section of the [WETH reserve on Aave ↗](https://app.aave.com/reserve-overview/?underlyingAsset=0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2&marketName=proto_mainnet_v3).

:::custom-warning[Negative APY Alert]
If you see a negative APY on your Boost position, it means the WETH borrow APY on Aave currently exceeds your Vault's staking APY.
A negative APY on a Boost position means the WETH borrow APY on Aave currently exceeds the Vault's staking APY.
If the APY remains negative for more than 7 consecutive days, consider exiting Boost manually.
Stay connected with the [StakeWise Discord ↗](https://discord.com/invite/2BSdr2g) community for real-time updates on market conditions.
:::

You can monitor the current WETH variable borrow APY in the **Borrow Info** section of the [WETH reserve on Aave ↗](https://app.aave.com/reserve-overview/?underlyingAsset=0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2&marketName=proto_mainnet_v3).

### osETH Supply Cap Reached

Boost deposits osETH as collateral on Aave, which enforces a maximum supply cap.
When total supplied osETH reaches this cap, no additional osETH can be deposited, making it impossible to open new boosted positions.
Existing boosted positions are not affected, but new boosts cannot be initiated until supply drops below the cap.

You can monitor the current supply usage in the **Supply Info** section of the [osETH reserve on Aave ↗](https://app.aave.com/reserve-overview/?underlyingAsset=0xf1c9acdc66974dfb6decb12aa385b9cd01190e38&marketName=proto_mainnet_v3).

:::custom-notes[Guide]
To start using Boost, see [How to Use Boost →](/staker/boost)
:::
**When the osETH supply cap is reached.** Boost deposits osETH as collateral on Aave, which enforces a maximum supply cap. When total supplied osETH reaches this cap, no additional osETH can be deposited, making it impossible to open new boosted positions. Existing boosted positions are not affected, but new boosts cannot be initiated until supply drops below the cap. The current supply level can be monitored in the **Supply Info** section of the [osETH reserve on Aave ↗](https://app.aave.com/reserve-overview/?underlyingAsset=0xf1c9acdc66974dfb6decb12aa385b9cd01190e38&marketName=proto_mainnet_v3).

:::custom-notes[Further Reading]
- [StakeWise Boost: A DeFi-Native Yield Amplification Strategy Made Simple ↗](https://blog.stakewise.io/caseStudy/stakewise-boost-a-defi-native-yield-amplification-strategy-made-simple)
- [Maximize Your Rewards With StakeWise Boost ↗](https://blog.stakewise.io/productUpdate/maximize-your-rewards-with-stakewise-boost)
- [How StakeWise Boost Keeps Your Rewards Juicy & Your Stake Safe ↗](https://blog.stakewise.io/caseStudy/how-stakewise-boost-keeps-your-rewards-juicy-and-your-stake-safe)
:::

<div id="fn-1" style={{fontSize: '0.85em', color: 'var(--ifm-color-content-secondary)', marginTop: '2rem', listStyle: 'none', fontFamily: 'Fragment Mono, ui-monospace, SFMono-Regular, Menlo, Monaco, Consolas, Liberation Mono, Courier New, monospace'}}>
<span>1.</span> Based on the <a href="https://blog.stakewise.io/caseStudy/how-stakewise-boost-keeps-your-rewards-juicy-and-your-stake-safe#:~:text=Scenario%201%3A%20When,passing%20day." target="_blank" rel="noopener noreferrer">historical analysis of 420 days</a>, LTV increases only ~10.7% of the time (39 days per year). On the remaining days, LTV actually decreases — for every 1 day of LTV increase, there are ~8 days of decline, making positions progressively safer over time. Even in an extreme scenario where borrow APY consistently exceeds osETH APY by 2%, starting from 93% LTV, liquidation would take over a year. As for mass slashing, breaching the 2% buffer would require 480–1,150 validators to be slashed across the protocol simultaneously — an event that has never occurred in StakeWise's 4-year history.
<a href="#fnref-1" style={{color: 'var(--ifm-color-content-secondary)', textDecoration: 'none'}}>↩</a>
</div>
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