sETH2
Crypto Overview
Overview
sETH2 is a liquid staking token representing staked ETH2 on the Ethereum network, created by StakeWise. When users stake their ETH through StakeWise, they receive sETH2 tokens representing their staked ETH.
Purpose and Utility
The primary purpose of sETH2 is to provide liquidity for ETH staked in Ethereum's proof-of-stake consensus mechanism. It allows users to maintain tradeable tokens while their ETH is locked in staking. Users can trade sETH2 freely while still maintaining exposure to staked ETH rewards.
Business Model
StakeWise operates as a non-custodial staking service. The platform allows users to stake ETH and receive sETH2 tokens that represent their staked position. The business model relies on taking a small percentage of staking rewards as protocol fees.
Real-World Adoption
sETH2 has achieved notable adoption within the Ethereum staking ecosystem. The token is actively traded on decentralized exchanges and has integration with various DeFi protocols.
Development Activity
StakeWise maintains active development of their staking infrastructure and token contracts. The platform regularly releases updates and improvements to their staking mechanism and user interface.
Token Distribution
sETH2 tokens are minted when users stake ETH through the platform. The token supply directly corresponds to the amount of ETH staked through StakeWise, maintaining a 1:1 relationship.
Crypto Impact
To assign a comfort level investing in sETH2 from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to sETH2.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.