What Is Geode?
Geode Finance is creating the liquid staking universe. With Proof of Stake (PoS), all ETH can be revenue generating, whether it’s sat in a smart contract, within a DAOs treasury, or in someone’s wallet. Geode is aiming to make this a reality while presenting a truly decentralized solution. But what does that mean, and why should I care if I believe in the ethos of decentralization? This article will help you discover the value in Geode and our approach to staking.
What Problem Does Geode Solve?
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 projects that want to monetize ETH without 3rd party fees and with the ability to customize their own risk profile.
Benefits of Joining Geode’s Ecosystem
There are many benefits to becoming a Planet (protocol, wallet, exchange or bridge) that’s a part of the Geode ecosystem. Benefits include:
- White label staking solution without fees, maintenance or third party risk
- Increase yield on your treasury and provide ETH2 staking to their users while maintaining the ability to charge what you want to generate income
- Bring your own governance to our ecosystem
- Manage your own risk profile by choosing your own node operators
- Gives projects the ability to create new yield generating products
- No Fees
- Full control over the withdrawal contracts, giving them complete security of treasury and user funds
- Liquidity Provider (LP) opportunities for their users via their own ETH2 staking token.
- Trustless and decentralized implementation, contrary to other centralized ETH2 staking protocols.
- On top of all these benefits, smooth and simple integration.
The token that unlocks all of this benefit for Geode users is known as wETH2.
Why Is wETH2 Valuable?
What makes wETH2 so valuable for DAOs is that every Planet can have their own tokenized version of wETH2! This is because wETH2 uses ERC-1155 token standard to create and support multiple tokens as they all contain the same base asset; staked Ether. DAOs can use their own ETH2 token within their own products while offering ETH2 staking to their users; and this service is offered by Geode for free!
How Does Geode Earn Fees?
Our liquidity pools (due to EIP-1155) allow users to easily switch between 1 protocol’s version of wETH2 and another, without the hassle of unstaking and re-staking. This gives users savings on gas expenses, while increasing efficiency and improving the user experience.
While users can switch between different versions of wETH2 on the Geode platform for a swap fee, there are no ongoing fees for using Geode to facilitate yield.
Why Swap wETH2 Tokens?
Normally, to stake a given amount of Ether for return, there are multiple gas-heavy steps required. If you change your mind at some point and want to stake elsewhere for any reason, you would have to take just as many gas-intensive steps to move your stake.
Because of the ecosystem facilitated by ERC-1155, you can easily swap between any wETH2 token in our ecosystem in just one transaction, saving yourself a lot in gas expenses.
What About Other Networks?
Any chain under PoS can benefit from Geode’s offering to potential partners. Ethereum is just the beginning with virtually no limit to how big the Geode ecosystem can grow.
How Does Geode Compare to Lido Finance?
Lido has created a situation where $6 billion in Ether is controlled by a single multisig and governed by a single DAO. We believe that ETH2 staking should not fall in the hands of a few providers. This is why we are creating the ETH2 staking universe where all projects can have access to their own staking solution.
For comparison, Lido is a single entity, vanilla staking solution with one ETH2 token (stETH) and their own governance. Geode is a congress of many DAOs, a white label staking solution, has multiple ETH2 tokens, universal governance and funds controlled by separate DAOs. Therefore, Geode is an altogether different approach to ETH2 staking. We believe our protocol eliminates the need for this traditional approach, replacing it with a decentralized and trustless alternative.
Geode is not just another place to stake your ETH. Geode is access to an ETH 2 staking ecosystem for other protocols, opening up the ETH2 staking industry to everyone in decentralized finance.
Who Is Behind Geode?
Geode’s lead developer is Ice Bear. The rest of the current core team are as follows:
- Crash Bandicoot — Solidity Developer
- Pacific — Solidity Developer
- Nomnom — Solidity Developer
- Exiton — Front End Lead
- DeFi Fry — Marketing Director
- Oranges — Operations Lead
- Cryptopher Robin — Social Media Lead
- Nomad — Design Lead
- SuperFlyTNT2 — Support Lead
Please beware of any false actors pretending to be team members in our Discord. Remember to never share your private keys with anyone!
How Do I Become a Part of Geode’s Ecosystem?
If you are a decision maker for a protocol, wallet, exchange or bridge that would like to become a part of the Geode ecosystem, join our Discord and contact Oranges from the Operations department.
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!