Executive summary
In this proposal, the NodeSet team is asking the StakeWise DAO to enable 100% osETH minting capability for the NodeSet Private Vault on Ethereum. The vault meets all of the recently approved criteria around the TVL, fee level, and performance metrics on Ethereum, and the team is prepared to provide the 5M SWISE bond required for enabling 100% LTV in this vault.
Motivation
Enabling 100% osETH minting for the NodeSet Private Vault would grow StakeWise DAO’s treasury through increased osETH minting from our committed long-term ETH depositors and help us attract new deposits which would do the same.
In addition, NodeSet provides uniquely decentralized infrastructure on StakeWise. This vault is powered by NodeSet’s curated cohort of hundreds of independent operators, making it the only vault that achieves true decentralization and fully removes centralization risks for depositors. We have invested significantly in the StakeWise ecosystem by building a unique integration to bring our operator community to StakeWise, and our promotion of StakeWise to our private depositors and alignment with the DAO’s decentralization goals demonstrate NodeSet’s commitment to enhancing the protocol’s visibility, adoption, and long-term success. Enabling 100% osETH minting rewards this alignment, encourages continued investment, and demonstrates StakeWise DAO’s decentralization goals.
As seen below, NodeSet’s vault has similar characteristics the other vaults on StakeWise with 100% osETH minting enabled:
| Criterion | Required | Actual | Pass |
|---|---|---|---|
| Vault Fee | 5% | 5% | Yes |
| Vault Version | 3 (highest) | 3 | Yes |
| TVL | > 10K ETH | > 25K ETH | Yes |
| Performance | Top 50% | Top 50% | Yes |
| SWISE Bond | 5M SWISE | 5M SWISE | Yes |
Performance
Please note that the NodeSet Private Vault performs around the network average according to Beaconcha.in.
One thing to note - our Rated score is “Moderate”, which technically doesn’t qualify for the above-average performance criterion for enabling 100% LTV in the Vault. However, Rated is known to overweight attestation correctness, relying heavily on proposal effectiveness. Such methodology unduly penalizes truly decentralized setups like NodeSet. In some cases where individual operators are located on the other end of the world from block proposers (e.g. Europe ↔ Southeast Asia), there is not enough time to propagate the head vote for the proposed slots, leading to a reduction in head vote accuracy. This ends up hurting our Rated score, despite reflecting the reality of how decentralized Ethereum and NodeSet are.
In light of this, we ask the DAO to consider Beaconcha.in’s validator efficiency scoring model as a better metric for cross-comparison between operators. Instead of measuring attestation correctness, it specifically measures actual income compared to ideal income, producing a score that captures the metric at the top of users’ minds, namely the influence of performance on rewards earned. Interestingly, the NodeSet Private Vault has a similar attestation efficiency (98.52%) to the Chorus One - Max MEV Vault (98.73%) as measured by StakeWise. This is because StakeWise uses a similar methodology to the one Beaconcha.in uses. In short, we believe it is better suited for assessing performance in terms of income earned, instead of pure stats.
Operator Onboarding
To join NodeSet, operators must pass the following checks:
-
Sign a message indicating control of a minimum of one currently active validator on-chain
-
6+ months of on-chain performance history
-
95% or more rated.network rating over the last 3 rolling months
In addition, 135 of our operators have 6 months of operational history with Constellation, our Rocket Pool-based offering.
Specification
Enabling 100% osETH minting for the NodeSet Private Vault requires the addition of the vault address to the os_token_vaults config, an upgrade to the LTV of the NodeSet Private Vault, and deactivation of liquidations for this vault. The transactions below will do so upon successful resolution of this proposal.
[
{
"to": "0x287d1e2A8dE183A8bf8f2b09Fa1340fBd766eb59",
"operation": "0",
"value": "0.0",
"data": "0x95f1fd4a000000000000000000000000b266274f55e784689e97b7e363b0666d92e6305b0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000ffffffffffffffff0000000000000000000000000000000000000000000000000de05bc096e9c000"
},
{
"to": "0x6B5815467da09DaA7DC83Db21c9239d98Bb487b5",
"operation": "0",
"value": "0.0",
"data": "0x8a76984d0000000000000000000000000000000000000000000000000000000000000020000000000000000000000000000000000000000000000000000000000000002e516d516f5763715076386370393862737a6745646a6a7579786d59784e446551464e687862324e627655736d6962000000000000000000000000000000000000"
}
]
Vote
The Snapshot vote is here: Snapshot