Geode Finance is creating the liquid staking universe. With such a goal, our community obviously has questions. This FAQ will help you understand the value offered by Geode Finance on Ethereum.
Geode Finance’s unique approach to staking was initially designed to solve a problem that exists on the Ethereum network. Essentially, any protocol that utilizes wrapped Ether (wETH) can use it to create validators and earn return from the validator rewards. However, it is challenging to set up an interface that will allow you to run your own validators. Additionally, relying on traditional ETH 2 staking protocols would require trust issued between the protocols since they are working in a centralized manner.
What is the end result? Most protocol treasuries miss out on the extra return or only dedicate a percentage of their treasury to a traditional ETH 2 staking protocol, carrying the inherent third-party risk. Until Geode came along, there was no solution to this problem.
Geode Finance unlocks the potential for DAOs to earn yield on their ETH, resulting in more yield for their users and more yield for the DAO itself. It’s a win-win for protocols that want to monetize ETH in their treasury without 3rd party fees and with the ability to customize their own risk profile.
A Planet is a protocol, wallet, exchange or bridge that is a part of the Geode ecosystem. Geode Finance allows any Planet to have its own ETH 2 staking solution. We give projects an interface that allows them to capture all the benefits of ETH 2 staking without any of the work. Each project gets their own ETH 2 token and we support liquidity provision for all tokens within our universe through our liquidity pools (GeoDex).
Through our liquidity pools (dubbed GeoDex), users can swap between different wETH2 tokens easily in one transaction. There is only a swap fee which still saves you money when you compare it to the gas cost normally required. ERC-1155 facilitates this composability which creates and supports multiple tokens as they all contain the same base asset; staked Ether.
Every Planet which is a part of the Geode ecosystem will have their own version of x-wETH2, where x represents the name of the Planet. You can easily swap through different versions of yield bearing x-wETH2 in our liquidity pools (GeoDex) thanks to the ERC-1155 token standard.
Geode Finance is an optimized ETH2 staking ecosystem. As implied in the name, our protocol aims to provide a rock-solid ground for all ETH2 staking use cases in DeFi (decentralized finance). Geode is creating the liquid staking universe.
Geode Finance is NOT a classic, custodial implementation designed as a new Staking-as-a-Service provider. This is not just another place to stake your ETH. Geode gives all protocols on Ethereum the ability to run their own ETH2 staking solution, creating a new ETH2 staking ecosystem.
Geode Finance offers numerous benefits to protocols who wish to participate in our ecosystem. Some benefits include:
· Opportunity to provide additional yield for users, increasing TVL
· Monetize ETH in treasury with no third party fees or risks
· Bring your own governance to our ecosystem
· Full control over the withdrawal contract and therefore complete security of their funds
· Manage your own risk profile by choosing your own node operators
· Users can benefit from LP opportunities for their own ETH 2 token
Geode has 4 components: Planets, the Senate, Node Operators and Liquidity Pools.
A Planet is any protocol, wallet, exchange or bridge that is a member of the Geode ecosystem.
The Senate is a control mechanism for all Planets. Each Planet has a seat on the Senate and helps to govern the Geode Ecosystem. Each Planet therefore brings its own governance to the protocol, having an equal say on the direction of Geode Finance.
Node Operators run Beacon validator nodes on behalf of a Planet. New node operators may be included with a proposal by Geode Governance and subsequent approval by the Senate. Planets have full control over their active Node Operators and can easily manage their risk profile.
Geode’s Liquidity Pools, dubbed GeoDex, resemble Saddle pools and allow retail users to swap between different ETH 2 staking tokens. The liquidity pools also provide exit liquidity to ETH. Planets can provide additional yield for their users through LP incentives for their own token.
Using the ERC1155 standard, Geode Finance can provide simple and seamless ownership of ETH staked while allowing for quick and easy transferability between different ETH 2 staking tokens. Retail users can easily switch between the different Planet’s ETH 2 tokens with Geode taking a fee from every swap, providing funding to the ecosystem. An example would be switching from AAVE-ETH2 to SUSHI-ETH2… possible in one transaction.
A user would wish to swap from one Planet’s token to another if they wish to move their capital into a different project to take advantage of a product or service they are offering that uses their wETH2 token.
Other reasons could include:
- Changing Planets to take advantage of lower fees that Planet might charge for their staking service
- Alter your risk profile, spreading your ETH across multiple Planets
- Speculation, if one particular wETH2 token is under peg.
How Do I Engage With Geode?
To participate in Geode governance, join our Discord and our governance forum. To stay up to date on the latest Geode developments, follow us on Twitter. For more educational content, follow us on Medium. To use Geode, visit geode.fi!