🧮 stVaults Economy Examples
Here you’ll find three typical economic examples of products built on top of stVaults. These simplified models are designed to clearly highlight the key metrics and factors that influence the overall economics of each product.
1. stVaults-based DeFi Product
As an example, we consider a personalized staking setup with a single Node Operator, full utilization of available stETH Minting Capacity, and subsequent use of stETH in DeFi to add an additional layer of rewards.
Annualized Economics Breakdown
Staking Rewards
Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain. e.g., 3.2% Staking APR.
Set per stVault through consensus between the Vault Owner and the Node Operator. e.g., 3% out of Gross Staking Rewards earned.
In this example, the annual Lido Fee approximately equals to 6% of the Lido Core Gross APR and can be calculated by the equation: Lido Fee = 6% * 3.2% Lido Core Gross APR * 90 stETH = 0.1728 ETH; e.g., Lido Core Gross APR ~ 3.2%.
stETH Liability Growth
The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Vault Owner’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Vault Owner earns as a holder of stETH. e.g., stETH APR ~ 2.88%.
stVault Bottom Line
A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.
stETH Usage Outside the stVault
The Vault Owner generates primary profit by using minted stETH in DeFi protocols:
- + 0.3392% — stVault Efficiency upside
- + 2.592% — minted stETH APR (normalized to stVault Total Value 100 ETH)
- + 2.53% — additional APR from DeFi strategy (normalized to stVault Total Value 100 ETH)
2. Institutional Staking
As an example, consider a digital neobank that requires liquid staking through a personalized setup with a single Node Operator, full utilization of the available stETH minting capacity, and storage of the minted stETH in a licensed custody solution.
Annualized Economics Breakdown
Staking Rewards
Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain. e.g., 3.2% Staking APR.
Set per stVault through consensus between the Vault Owner and the Node Operator. e.g., 3% out of Gross Staking Rewards earned.
In this example, the annual Lido Fee approximately equals 6% of the Lido Core Gross APR and can be calculated by the equation: Lido Fee = 6% * 3.2% Lido Core Gross APR * 90 stETH = 0.1728 ETH; e.g., Lido Core Gross APR ~ 3.2%.
stETH Liability Growth
The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Vault Owner’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Vault Owner earns as a holder of stETH. e.g., stETH APR ~ 2.88%.
stVault Bottom Line
A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.
stETH Usage Outside the stVault
The Vault Owner generates primary profit via higher validation performance than Lido Core APR plus rewards received as a stETH holder.
- + 0.3392% — stVault Efficiency upside
- + 2.592% — minted stETH APR (normalized to stVault Total Value 100 ETH)
3. Leveraged Staking
As an example, we consider a personalized staking setup involving a single Node Operator, full utilization of the available stETH minting capacity, and recursive leverage through external lending markets.
In our example
Annualized Economics Breakdown
Staking Rewards
Validators generate staking rewards on top of the 100 ETH deposited to the Beacon Chain. e.g., 3.4% Staking APR.
Set per stVault through consensus between the Vault Owner and the Node Operator. e.g., 4% out of Gross Staking Rewards earned.
In this example, the annual Lido Fee approximately equals 6% of the Lido Core Gross APR and can be calculated by the equation: Lido Fee = 6% * 3.2% Lido Core Gross APR * 850.11 stETH = 1.6322 ETH; e.g., Lido Core Gross APR ~ 3.2%.
stETH Liability Growth
The stVault’s liquidity is provided in stETH, a rebasing token — its balance updates daily to reflect accrued staking rewards. To ensure the Vault Owner’s repayment amount is always accurately represented, the minted stETH liability adjusts daily in line with stETH’s rebasing mechanics. This is primarily a technical adjustment, as the liability increase is offset by the rewards the Vault Owner earns as a holder of stETH. e.g., stETH APR ~ 2.88%.
stVault Bottom Line
A positive stVault Efficiency indicates that the Node Operator’s performance is sufficient to cover the growth of the stETH Liability.
stETH Usage Outside the stVault
The Vault Owner used the minted stETH to loop through a lending market in order to amplify staking rewards. Additional income and expenses from the lending market:
- + 24.4832 stETH — rebase rewards from stETH used as collateral on the lending market
- + 2.5503 stETH — supply-side rewards from the lending market
- - 21.1431 ETH — interest paid on borrowed ETH
Total APR is normalized to the Vault Owner’s initial 100 ETH.
(!) Note: All lending market parameters are illustrative. Actual values depend on the specific product and prevailing market conditions. (!)