When you stake Ethereum, you lock your ETH to help secure the network and earn rewards—but you can’t use it elsewhere. That’s where osETH, a liquid staking token issued by the EigenLayer protocol that represents staked ETH and allows users to earn yield while keeping their assets usable in DeFi. Also known as operational staked ETH, it’s not just a receipt—it’s a tool that unlocks liquidity in a system built to lock it up. Unlike traditional staking, where your ETH sits idle for months, osETH lets you trade it, lend it, or use it as collateral in protocols like Aave or Curve. This is the core idea behind liquid staking: turn a locked asset into a working one.
osETH is built on top of EigenLayer, a restaking protocol that lets Ethereum stakers reuse their staked ETH to secure other blockchain services, earning extra rewards in the process. This means your osETH isn’t just earning base staking yield—it’s potentially earning additional income from securing decentralized services like oracles, bridges, and rollups. But here’s the catch: the more layers you add, the more complex the risk. If one of those services gets hacked, your staked ETH could be slashed. It’s not a free lunch—it’s a higher-stakes game with better payouts.
Related to osETH are staked ETH, the underlying asset that backs every osETH token, representing the actual ETH deposited into Ethereum’s consensus layer, and DeFi yield, the combined returns from staking, lending, and restaking that make liquid staking tokens attractive to active investors. These aren’t just buzzwords—they’re the building blocks of how modern crypto investors earn without selling. If you’re holding ETH and want to do more than just wait for price moves, osETH gives you a way to turn that holding into a multi-layered income stream.
But not all osETH use cases are equal. Some users deploy it in yield farms for extra returns. Others use it to borrow against it in decentralized lending markets. A few even trade it on DEXs to hedge against ETH volatility. The posts below show real examples—what worked, what blew up, and what no one talks about. You’ll see how people actually used osETH in 2025, the hidden fees they missed, and the protocols that turned out to be risky. No hype. No fluff. Just what happened when people put osETH to work—and what they learned the hard way.
osETH is StakeWise's liquid staking token that lets you earn Ethereum staking rewards while keeping your ETH liquid. Unlike other tokens, osETH protects your principal from slashing risks through overcollateralization.
