[Temperature Check] Integrate Redacted's Pirex ETH to kETH and Restaking Cloud

Proposal Discussion
1

Relevant Links:

Website: https://redacted.finance/ and https://dineroismoney.com

Documentation: https://docs.redacted.finance/ and Dinero Docs

Github Page: Redacted Protocol · GitHub

Twitter: https://twitter.com/redactedcartel

Discord: REDACTED

Dune Analytics: https://dune.com/funky/redacted

Audits: Dinero Docs

Summary

This proposal seeks to:

  1. include Pirex ETH as a new yield source within kETH (https://getketh.com/)
  2. Integrate Pirex ETH as a restaking asset on Restaking Cloud (https://restaking.cloud/)

Protocol Description:

pxETH is a liquid and fungible receipt token for ETH deposited into the Dinero protocol. pxETH is built on top of the Redacted DAO’s Pirex platform and forms an integral part of Redacted’s Dinero protocol, a protocol which aims to vertically integrate ETH staking, block proposal and building, a RPC, leverage, and yield stripping into one synergistic ecosystem comprising pxETH, the Redacted Relayer RPC, and the DINERO stablecoin. pxETH provides users with a liquid and fungible tokenized staked ETH which benefits from Ethereum staking rewards and other revenue forms such as MEV tips and block rewards. Future pxETH yield and pxETH withdrawals can be tokenized and used within DeFi. Further details about pxETH can be found in the whitepaper here.

In addition to the DEX liquidity for pxETH incentivized by Redacted DAO, the Dinero protocol has additional mechanisms to improve pxETH liquidity and support the pxETH:ETH peg in both normal and adverse market conditions allowing for greater pxETH DeFi composability.

pxETH can be redeemed for ETH from the Dinero protocol either instantaneously for ETH which has yet to be staked or via ETH which is unstaked from validators. In the future a novel incentivized withdrawal pool will facilitate quicker pxETH withdrawals when there is an ETH unstaking queue and/or adverse market conditions.

Pirex ETH uses a two-token LST design, where unstaked pxETH earns no staking rewards but has opportunities to earn incentives from various DeFi integration partners, and staked pxETH (called apxETH) benefits from the boosted staking rewards.

The governance token for pxETH is BTRFLY.

Integration details

For the kETH product, which is a LST yield optimizer that allocates staked ETH across various LSTs, adding in apxETH would bring in boosted staking yields that improve the returns on the entire kETH portfolio.

For Restaking Cloud, which is a modular security market place secured by restaking ETH, adding in apxETH as a collateral type would improve the diversity of LST providers that restakers can choose from, as well as offer the boosted staking yields that may be helpful in offset some slashing risks.

In summary, an integration of Pirex ETH with kETH and Restaking Cloud will provide more ways where Pirex ETH can be used and earn rewards for providing security, while kETH and Restaking Cloud can benefit from more diversity of LST providers and access the boosted staking rewards unique to Pirex ETH.

3 Likes
2

Nice! Keep integrating, expanding, and growing.

3

This is excellent and the community has passed this vote to move forward (See Snapshot vote here.

What do you need from the community to move forward now @Carnation? Let us know how we can help get the integration going and work our way into production. Thanks!

2 Likes