OPAP-9 Portfolio and Allocation Optimization

General
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Summary:

This proposal introduces a new strategy: the Wrapped Liquid Staked Ether (wstETH)_Mellow_Symbiotic strategy, which will become an underlying asset for STONE and allocate a portion of ETH. This new strategy aims to upgrade the previous Wrapped Liquid Staked Ether (wstETH)_Symbiotic strategy.

Meanwhile, if this proposal is approved, 1% of the underlying ETH will be allocated to the Native lending pool on the ETH mainnet. This ETH will serve two purposes: first, with the help of the PMM Network, it will support STONE’s omnichain redemption; second, the lending pool itself will facilitate STONE’s loop. The integration of the Native strategy highlights StakeStone’s unique advantage in building the Liquid ETH.

About OPAP-9:

The proposal has two purposes:

first, to add the Wrapped Liquid Staked Ether (wstETH)_Mellow_Symbiotic strategy as one of StakeStone’s underlying strategies and to deploy a portion of ETH;

second, to deploy additional ETH into the Native Lending Pool_PMM. The ETH in the Native lending pool will support STONE’s omnichain redemption and facilitate STONE’s lending on the ETH Mainnet.

StakeStone will also release a front-end feature for omnichain redemption to provide users with greater flexibility.

Proposed Fund Allocation

  • Lido Staked Ether (stETH)_EigenLayer: 68.6%
  • Native Lending Pool_PMM: 1%
  • Wrapped Liquid Staked Ether (wstETH)_Symbiotic: 0.05%
  • Wrapped Binance Beacon ETH (wBETH)_Symbiotic: 7.05%
  • Wrapped Liquid Staked Ether (wstETH)_Mellow_Symbiotic: 23.3%

Smart Contract Address and Audits

Voting and Implementation

  • On Ethereum mainnet, STONE can be used to vote in favor or against this proposal with the weight determined by the number of STONE used to vote.
    • For: Implement this proposal
    • Against: Do not implement this proposal
  • The aim of this proposal is to offer transparency on StakeStone’s underlying assets; participation is not mandatory.
  • This proposal will be implemented if it receives more affirmative votes than opposing votes at the end of the public notice period

If nobody vote for or against this proposal during the entire voting period, this proposal will not be implemented

Description:

Optimizing Portfolio and Allocation Proposal (OPAP) is a decentralized, on-chain mechanism for managing STONE’s underlying assets. Any adjustment to the underlying assets must go through a public notice period, on-chain voting, and final execution by the smart contract.

If this proposal is approved, the Wrapped Liquid Staked Ether (wstETH)_Mellow_Symbiotic strategy will gradually replace the previous Symbiotic strategy. This change will enhance STONE’s scalability within the Symbiotic ecosystem and support potential features like delegation more seamlessly.

Additionally, with 1% of the underlying ETH deployed to the Native Lending Pool_PMM, the omnichain redemption powered by the PMM Network will officially launch. StakeStone will update this feature on its official website, providing STONE with more robust exit liquidity. The organic integration of StakeStone and Native significantly improves the user experience for acquiring and exiting STONE across all chains, fundamentally addressing the issue of asset liquidity being fragmented across different chains and DEXs. We firmly believe that a yield-bearing asset is of little value unless it is liquid, which is why we will continue to deliver innovative solutions to enhance STONE’s liquidity across the entire ecosystem.

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About Native:

Native is DeFi’s omnichain programmable liquidity hub. It provides a unified layer of capital-efficient liquidity across blockchains and the apps built on them. From any supported chain, liquidity providers can supply assets to the protocol, receiving yields in return through their Peer-to-PMM credit system, where sophisticated Market Makers use pooled liquidity on credit to deliver traders optimal pricing.

Website: https://native.org/

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Documents: Welcome | Native Documentation

About Mellow:

Mellow Protocol is a liquid restaking protocol designed to operate within the dynamic environment of the AVS ecosystem. Mellow Protocol offers a series of vault smart contracts tailored to different risk profiles, managed by curators. These vaults rely on the inherent flexibility, composability and security of both Ethereum and restaking providers to mitigate AVS risks effectively.

Website: https://mellow.finance/

X: x.com

Documents: Overview | Mellow Protocol