What is StakeWise Staked ETH (osETH)? A Clear Guide to Liquid Staking on Ethereum
osETH Staking Rewards Calculator
Calculate how much your staked ETH will be worth in osETH after a specific time period, including staking rewards. osETH represents staked ETH and increases in value as rewards accumulate.
When you stake Ethereum (ETH), you lock your coins to help secure the network and earn rewards. But here’s the problem: once your ETH is staked, it’s stuck. You can’t trade it, use it in DeFi, or cash out quickly. That’s where osETH comes in. It’s not just another crypto token-it’s a way to keep your ETH liquid while still earning staking rewards. Developed by StakeWise, osETH lets you stake ETH without giving up control or flexibility.
What Exactly Is osETH?
osETH, short for StakeWise Staked ETH, is an ERC-20 token you get when you stake ETH through the StakeWise platform. Each osETH token represents one staked ETH on the Ethereum blockchain. But unlike locked ETH, osETH can be sent, traded, or used in DeFi apps like Uniswap, Aave, or Curve-all while continuing to earn staking rewards.
Think of it like a digital receipt. You hand over your ETH to StakeWise, and in return, you get osETH. The original ETH gets staked on your behalf by StakeWise’s validators. Meanwhile, your osETH keeps growing in value as rewards accumulate. If you started with 1 ETH and earned 0.05 ETH in rewards over a month, your 1 osETH would now be worth 1.05 ETH. That’s the magic: your token’s value increases over time, not just your balance.
How Is osETH Different from stETH or rETH?
There are other liquid staking tokens out there. Lido’s stETH and Rocket Pool’s rETH are the big names. But osETH plays by different rules. Most liquid staking tokens, like stETH, pass on slashing risks directly to token holders. If a validator goes offline or gets penalized, your stETH loses value. That’s a big deal if you’re holding large amounts.
osETH fixes this with something called overcollateralization. StakeWise doesn’t just stake 1 ETH to create 1 osETH. It stakes more-often 1.1 ETH or even more-behind each osETH. That extra ETH acts as a buffer. If a validator gets slashed, the system uses that extra collateral to cover the loss before your osETH is affected. In fact, StakeWise V3 uses two types of Vaults: 90% LTV Vaults (backed by 1.1 ETH per osETH) and 99.99% LTV Vaults (backed by way more ETH, plus a 5 million SWISE token bond from the operator). This means your osETH is protected from most slashing events.
Compare that to stETH, which maintains a 1:1 peg but has no safety net. If multiple validators fail at once, stETH can temporarily drop below 1 ETH. osETH doesn’t do that. It’s designed to hold its value even under pressure.
How Do You Get osETH?
You have two main ways to get osETH:
- Stake ETH directly through the StakeWise platform. Connect your wallet (MetaMask, Coinbase Wallet, or OKX), deposit ETH, and mint osETH. The process is non-custodial-you keep control of your keys. StakeWise handles the rest: setting up validators, managing keys, and distributing rewards.
- Buy osETH on a DEX. You can trade ETH or other tokens for osETH on decentralized exchanges like Uniswap or SushiSwap. This is useful if you don’t want to wait for staking to process or if you’re already holding other assets.
Either way, you’re not giving up control. StakeWise doesn’t hold your ETH. It just uses smart contracts to manage the staking process. That’s why it’s called non-custodial. You own your osETH, and you can redeem it back to ETH anytime.
How Do You Redeem osETH for ETH?
Redeeming osETH is where things get interesting. You can’t just click a button and instantly get ETH back. It depends on what’s happening in the network.
If there’s enough unbonded ETH available in StakeWise’s reserves (ETH that’s already in the process of being withdrawn), you can get your ETH back instantly. But if the system is under heavy redemption pressure, StakeWise has to initiate validator exits. That takes time-usually 18-24 hours per validator. The system uses oracles to track the real-time exchange rate between osETH and ETH, so you always get the correct amount of ETH based on accumulated rewards.
It’s not as fast as stETH redemption, but it’s safer. The delay prevents bank-run scenarios where everyone tries to cash out at once and crashes the system. StakeWise’s design prioritizes stability over speed.
Can You Use osETH in DeFi?
Yes, and that’s where its real power shows. Because osETH is an ERC-20 token, you can use it anywhere Ethereum DeFi apps are built.
- Lend it on Aave to earn interest on top of staking rewards.
- Provide liquidity on Curve or Uniswap and earn trading fees.
- Use it as collateral to borrow other assets.
Most liquid staking tokens can do this, but osETH adds an extra layer: you’re not risking your principal to slashing. That makes it more attractive for DeFi users who want yield without volatility.
What About Restaking with EigenLayer?
One of the biggest updates for osETH came in late 2023 with its integration into EigenLayer. Restaking means you can use your staked ETH (via osETH) to secure other protocols beyond Ethereum-like decentralized oracles, bridge networks, or data availability layers.
By depositing osETH into EigenLayer, you’re not just earning staking rewards anymore. You’re also earning extra fees for helping secure other parts of the Ethereum ecosystem. This opens up new income streams and makes osETH more valuable over time. It’s like getting paid twice-for securing Ethereum and for helping secure the next layer of decentralized apps.
How Safe Is osETH?
Security is StakeWise’s main selling point. Here’s how they keep things tight:
- Multi-signature wallets protect the operator keys.
- Validator keys are split and stored across multiple secure locations.
- Overcollateralization ensures your osETH is shielded from slashing.
- StakeWise is fully non-custodial-no central authority holds your funds.
As of late 2023, the platform has processed over $1 billion in staked ETH with zero slashing events affecting osETH holders. That’s a strong track record. While no system is 100% immune to bugs or attacks, osETH’s design makes it one of the safest liquid staking options available.
Market Position and Fees
As of November 2025, osETH has a market cap of around $940 million and a circulating supply of 348,397 tokens. That’s small compared to stETH’s $10+ billion, but it’s growing. StakeWise isn’t trying to beat Lido in volume. It’s aiming for trust and safety.
Fees are also competitive. StakeWise takes a 10% cut of staking rewards, which goes to the StakeWise DAO. That’s lower than some competitors who charge 15-20%. More rewards stay in your pocket.
Who Is osETH For?
osETH is ideal for:
- Ethereum holders who want staking rewards but can’t afford to lock up their ETH.
- DeFi users who need liquid assets to participate in yield farming or lending.
- Risk-averse investors who don’t want to take slashing risk.
- Institutional players looking for secure, non-custodial staking solutions.
It’s less ideal for:
- Traders looking for quick, instant redemptions.
- Beginners unfamiliar with wallets, smart contracts, or DeFi.
The learning curve is moderate. You need to understand wallets, gas fees, and basic DeFi concepts. But once you get past that, osETH is one of the most straightforward ways to earn passive income on ETH without giving up liquidity.
What’s Next for osETH?
StakeWise is working on expanding beyond Ethereum. There are talks about bringing osETH-like tokens to other chains, though nothing is confirmed yet. The focus remains on improving the Vault system, making redemption smoother, and deepening DeFi integrations.
The biggest wildcard? Regulatory scrutiny. The SEC has been watching liquid staking products closely. While osETH hasn’t been targeted yet, any future regulation could impact how it’s used, especially in the U.S. For now, it remains a permissionless, global tool.
With restaking and EigenLayer opening new doors, osETH is no longer just a staking tool-it’s becoming a building block for the next generation of Ethereum-based finance.
Is osETH the same as ETH?
No, osETH is not ETH. It’s a tokenized representation of staked ETH on the StakeWise platform. While each osETH is backed by at least 1 ETH, it’s a separate ERC-20 token that increases in value as staking rewards accumulate. You can redeem osETH for ETH, but they’re not interchangeable on-chain.
Can I lose money with osETH?
The risk is very low, but not zero. osETH is protected by overcollateralization, so slashing events rarely affect holders. However, if StakeWise’s smart contracts have a critical bug, or if the entire Ethereum network faces a major failure, losses could occur. Also, if you redeem during a period of high demand, you may experience delays. But unlike stETH, your principal value is shielded from validator penalties.
How do I earn rewards with osETH?
You earn rewards automatically. As ETH stakers earn rewards from the Ethereum network, those rewards are added to the StakeWise Vault backing your osETH. This increases the value of your osETH token over time. You don’t need to claim anything-the increase is reflected in the token’s exchange rate. You can check your balance anytime on the StakeWise dashboard or via your wallet.
Is osETH supported on centralized exchanges?
Currently, osETH is only available on decentralized exchanges like Uniswap and SushiSwap. Major centralized exchanges like Coinbase or Binance do not list osETH. This is intentional-StakeWise prioritizes decentralization and non-custodial access, so it avoids centralized intermediaries.
What’s the difference between staking ETH directly and using osETH?
Staking ETH directly means locking it for months with no liquidity-you can’t trade or use it. With osETH, you get the same rewards but can still use your assets in DeFi, sell them, or lend them. osETH gives you flexibility without sacrificing yield. It’s staking with liquidity.
osETH is genius-stake your ETH and still use it in DeFi. No more locking up assets like it’s 2017.
biggest thing no one talks about is how osETH’s overcollateralization beats stETH’s 1:1 gamble. i lost 8% on stETH during that validator glitch last year. osETH would’ve kept me whole. also, 10% fee is way better than lido’s 15%.
just wish more dexes listed it. i had to swap 3x to get it.
usa crypto bros love this ‘safe’ nonsense. overcollateralization doesn’t mean squat if the smart contract gets hacked. and eigenlayer? that’s just layering risk on top of risk. this isn’t innovation, it’s financial jenga. and the ‘zero slashing’ claim? lucky so far. wait till the next mass exit.
they’re hiding something. why no cex listings? because the sec knows this is an unregistered security. they’re waiting for the right moment to shut it down. you think this is safe? wait till the feds freeze the smart contract. i told you this was a trap. 🤡
why even bother with oseth when you can just buy eth and hold? this is just another wall street trick to make you think you’re earning more. they’re selling you smoke and mirrors. and who even uses curve or aave? only degens.
I really appreciate how StakeWise prioritizes safety over hype. Most liquid staking products treat users like ATMs, but osETH’s overcollateralization model feels genuinely thoughtful. The fact that they’ve processed over $1B without a single slashing event is remarkable.
It’s also refreshing to see a project that doesn’t chase market cap at the cost of user security. The 10% fee is fair, especially when you consider the operational complexity of running secure validators across multiple locations.
And the integration with EigenLayer? That’s not just a feature-it’s a paradigm shift. Being able to secure other protocols while earning staking rewards means your capital is working harder than ever. It’s not just passive income anymore-it’s multi-layered value creation.
I’ve used stETH and rETH, and while they’re fine for some, I’ve always felt uneasy about the lack of a safety net. With osETH, I sleep better knowing my principal isn’t on the line.
Also, the non-custodial nature is huge. No middlemen. No KYC. Just smart contracts doing what they’re supposed to. It’s rare to find a project this technically sound and philosophically aligned with crypto’s original ethos.
love this so much!! i’ve been using osETH for 8 months now and never had a single issue. lent it on aave, added liquidity to curve, and still earned staking rewards the whole time. it’s like getting paid to do nothing and still having access to my money 😍
osETH is the real deal. i was scared of slashing at first but the overcollat thing made me feel safe. also, redeeming takes a bit longer but honestly? better than losing half my stash.
just make sure you know how to use a wallet before jumping in. if you dont, ask someone. dont just throw money at a contract.
everyone’s ignoring the fact that osETH’s value increase is just accounting magic. the underlying ETH isn’t growing. the token is just being revalued. that’s not yield, that’s a ledger update. you’re not earning more ETH, you’re just seeing a different number on your screen. same as stETH. stop pretending this is different
thank you for writing this so clearly. i’ve been trying to understand liquid staking for months and this finally clicked. osETH isn’t just a token-it’s a bridge between security and flexibility. and the fact that it’s non-custodial? that’s the whole point of crypto, right?
also, eigenlayer restaking is wild. imagine earning rewards just for helping keep other protocols secure. it’s like being a volunteer firefighter who gets paid extra for helping put out neighbor’s fires. 🙌
osETH is the unicorn of liquid staking-safety, liquidity, AND restaking rewards? this isn’t finance, it’s alchemy.
imagine holding a token that grows in value while you sleep, lets you trade it like cash, and still earns you extra cash for securing the entire ethereum ecosystem.
lido’s stETH? it’s a paper crown. osETH? it’s the real throne. 🏰💎
While the technical architecture of osETH demonstrates a commendable commitment to risk mitigation through overcollateralization and non-custodial design, one must remain cognizant of the systemic dependencies inherent in any Ethereum-based instrument.
The reliance on oracles for redemption pricing, the potential for validator set centralization under the Vault system, and the non-trivial exposure to EigenLayer’s own attack surface collectively introduce non-trivial tail risks.
Moreover, the 10% fee structure, while ostensibly lower than competitors, is still a non-negligible drag on long-term compounding. One must question whether the marginal safety premium justifies the opportunity cost of capital allocation.
usa thinks it’s so smart with its overcollateralized nonsense. china and russia are building real blockchain infrastructure while you guys are playing with your crypto receipts. osETH is just another american financial gimmick. you think you’re safe? wait till the world moves on. we don’t need your liquidity tokens. we need real sovereignty.
if you’re not using osETH right now, you’re leaving money on the table. this isn’t just staking-it’s a financial superpower.
you get rewarded for holding, you get rewarded for lending, you get rewarded for securing the next layer of the internet.
it’s like having a bank account that pays you, lets you spend it, and even pays you to help other banks. this is the future. get in. 🚀
oseth is just a meme now. everyone’s jumping on it because they saw it on coinmarketcap. nobody knows how it works. they just think its safe because someone said so. you think its secure? wait till the first big hack. then you’ll see who’s really holding the bag
osETH is a Trojan horse for centralized control. non-custodial? sure. but who runs the validators? who controls the oracle feeds? who owns the SWISE token bond? it’s all tied to a small group of insiders in san francisco. this isn’t decentralization-it’s branded control. and you’re all just cheerleaders for their corporate staking cartel.
the real innovation isn’t osETH-it’s the philosophical shift from ownership to representation. you’re not holding ETH anymore. you’re holding a claim on ETH, enhanced by economic incentives and layered security. this is post-blockchain finance.
the token isn’t a receipt-it’s a derivative of trust. and trust, in this context, is algorithmically quantified, overcollateralized, and restakeable.
we’ve moved beyond currency. we’re now in the era of trust-as-an-asset.
cool. i guess.