wstETH+ is a yield bearing ETH derivative token that increases in value relative to ETH.
Polygon Contract Address: 0x275d5F9ECD1759395F0F43253904b47319b57b59.
Value appreciation of wstETH+ occurs via two separate layers that combine together to multiply yield.
1. The first yield producing layer: Ethereum Network Staking produces about 3% yield a year and is managed by the Lido Protocol and DAO.
ETH used to purchase wstETH is staked by Lido to secure the Ethereum Network. ETH tokens gained from staking rewards are then used to back the value of wstETH, which steadily increases the value of wstETH over time compared to ETH.
Learn more about wstETH at Lido.fi.
2. The second yield producing layer: Deflationary Token Wrapper + Compounded Fees from burned liquidity pools has historically produced about 20% yield per year and is managed by the StarSeeds Protocol and DAO via the wstETH+ token.
wstETH+ is a deflationary token with a 0.1% burn on transfer & a 0.02% tax-on-transfer. As wstETH+ tokens are traded by users and also by arbitrage trading bots, the circulating supply of wstETH+ decreases, meanwhile, the amount of wstETH backing the wstETH+ increases due to permanently auto-compounding wstETH/wstETH+ liquidity pools.
The actual yield produced by this layer of mechanisms varies widely based on arbitrage trade volume caused by fluctuations in the value of ETH and other tokens that are paired to wstETH+ as well as trade volume from users.
Unlike wstETH, which has near-zero price impact related to trade volume, wstETH+’s value does fluctuate slightly as it is traded.
Due to the curve-style stableswap algorithms used in wstETH+ liquidity pools, wstETH+ price impact from trade volume is reduced by about 90% compared to standard V2 LPs. As a result, wstETH+ is more volatile then ETH or wstETH.
wstETH’s higher volatility generates additional arbitrage trade volume for tokens paired to wstETH+.
The combination of increased trade volume and higher yield makes wstETH+ a better choice for many long-term liquidity providers.
wstETH+ Logic, Contracts and Security.
wstETH+ token deployed via DodoX token factory. View DodoX Security Audits here.
Maximum supply of 100 wstETH+.
After being deployed to the Polygon chain, 100% of wstETH+ tokens were deposited into single sided and pegged DodoX liquidity pools. 100% of LP receipt tokens generated from initial wstETH+ liquidity were burned.
By depositing 100% of wstETH+ into ETH based liquidity pools and then burning the generated LP Tokens, StarSeeds Protocol has programatically secured all wstETH+ in circulation with a equivalent amount of ETH.
wstETH+ gained from wstETH+’s 0.02% tax-on-transfer fee is paired with other yield bearing tokens like stMATIC+ or USD-SS in autocompounding liquidity pools in order to increase wstETH+’s arbitrage based trade volume, which automatically appreciates the value of wstETH+ over time.
List of initially deployed wstETH+ liquidity pools:
1. Contract: 0x6e3201c7f3f46ae8ffb4cac6dc702edca94b584dOne wstETH+ initially deposited. Single Sided. 0.04% fee. 0.2 Coefficient. Min swap rate of 1 wstETH per wstETH+. Click here to view the LP front-end.
2. Contract: 0xf721e72bcf8ba2feff4d2971b6dc06db1a06523cThree wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 1.5. wstETH per wstETH+. Click here to view the LP front-end.
3. Contract: 0x3fba013ecdea8b75e98d3f1e56579936cb09f0aeTen wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 2 wstETH per wstETH+. Click here to view the LP front-end.
4. Contract: 0xf0ae261fd8bdf944fbd01d93253625725657e610 Ten wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 2.5 wstETH per wstETH+. Click here to view the LP front-end.
5. Contract: 0x1E78C249bAE90Ba40610362a48A8fe24055A83F2Ten wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 3 wstETH per wstETH+. Click here to view the LP front-end.
6. Contract: 0xb9450958530a014802ee41c94dc23f69827234b6Ten wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 3.5 wstETH per wstETH+. Click here to view the LP front-end.
7. Contract: 0x67d47cE9f43413aa92A242783f8A54D923293661Ten wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 4 wstETH per wstETH+. Click here to view the LP front-end.
8. Contract: 0xF1c14A9b763A38ba9db7e9f01df9c545F349b0a2Ten wstETH+ initially deposited. Single Sided. 0.04% fee. 0.1 Coefficient. Min swap rate of 4.5 wstETH per wstETH+. Click here to view the LP front-end.
9. Contract: 0x62782085294bd16FF40791a166414D0fF64b1dcFThirty wstETH+ initially deposited. Single Sided. 0.1% fee. 0.05 Coefficient. Min swap rate of 5 wstETH per wstETH+. Click here to view the LP front-end.
10. Contract: 0x350cF0D866149DD69489a98e8C22DAFa7575eB58Five wstETH+ initially deposited. Pegged at a ratio of 1 wstETH+ to 1 ETH-SS. 0.1% fee. 0.1 Coefficient. Click here to view the LP front-end.
11. Contract: 0xc3Ec2A5fc0EaD25908AF635A2a6D66e8ef5ad71A1 wstETH initially deposited. Single Sided. 0.1% fee. 0.5 Coefficient. Min swap rate of 1.20 WETH per wstETH+. Click here to view the LP front-end.
These 11 liquidity pools are configured to increase the depth of wstETH+ liquidity in stages as the value of wstETH+ appreciates compared to wstETH.
Increased market depth corresponds to a decrease in price impact from trading, making wstETH+ less volatile as its value increases perportionate to wstETH.
wstETH+ Risks and Disadvantages.
wstETH+ relies on the security of Ethereum, Polygon, wstETH, and DodoX token and liquidity pool factory contracts. Contract failure or exploitation of underlying blockchains or contracts can result in loss, including total loss, for wstETH+ holders.
The possibility of contract failure or exploitation has been mitigated as much as reasonably possible, with numerous audits and bug bounty programs for each of the underlying blockchains and contracts that wstETH+ relies upon.
wstETH+ holds one major disadvantage compared to ETH/wstETH due to wstETH+’s volatility. Which can create temporary drawdown for users. As such holding wstETH for short to medium durations can result in some amount of loss or decreased gain compared to holding WETH/wstETH for the same duration of time.
Based on data from ETH-SS, a deflationary yield producing token wrapper for WETH, a minimum holding period of 6 months will drastically reduce the chance of drawdown for wstETH+ holders.
Polygon Contract Address: 0x275d5F9ECD1759395F0F43253904b47319b57b59.