Health Monitoring Guide

Definitions

• Reserve Ratio (RR) limits minting — this means that users will be able to mint up to (100% − RR) of stETH out of ETH they put into the stVault. However, falling below RR doesn't force an immediate correction.
• Utilization Ratio (UR) is a metric that shows how much stETH is minted out of Total stETH Minting Capacity: Utilization Ratio = (stETH Liability / Total stETH Minting Capacity) × 100%

TLDR

Regularly monitoring Health factor, Carry Spread, Net staking APR, and stETH Liability / Utilization ratio is a good operational practice for stVault owners.

Keeping these metrics within safe ranges makes it possible to:

• Detect early signals that the stVault economics are deteriorating.
• React before the Health factor approaches 100% or Utilization ratio reaches 100%.
• Reduce the likelihood that the stVault will enter a state where forced rebalancing or other emergency actions become necessary.

Consistent observation of these indicators helps minimize the risk that stVault health degrades to unacceptable levels and supports the long-term stability of the stVault.

Monitoring stVaults health in the UI

The stVault overview screen provides a quick view of the economic state of a specific stVault.

From here, drill down into the key metrics that determine stVault health:

• Health factor
• Net staking APR
• stETH Liability / Utilization ratio

This section explains what each metric means, where to find it in the UI, and what to pay attention to when monitoring an stVault.

Health factor

Definition: Health Factor (HF) is a metric calculated using the following formula: Health Factor = Total Value × (1 − FRT) / Minted stETH

Health factor shows how well the stETH Liability is collateralized by the Total value of the stVault.

It is the primary indicator of the stVault’s overall health.

• As a rule, the Health factor should always remain above 100%.
• When the Health factor moves closer to 100%, the stVault becomes riskier and may approach the forced rebalancing zone.
• If the Health factor falls below 100%, the stVault becomes subject to forced rebalancing.

The Health factor details view also shows Carry Spread.

Carry Spread — Estimated yearly returns from staking in the stVault, after deductions of fees and stETH Liability growth due to stETH rebase.

Carry Spread shows whether the stVault economics are improving or deteriorating over time:

• Positive Carry Spread
  • Expected yearly return is positive after accounting for fees and Liability growth.
  • All else equal, this supports improving or stable Health factor.
• Negative Carry Spread
  • Expected yearly return is not sufficient to cover fees and Liability growth.
  • Over time this tends to erode the Health factor and push it closer to 100%.

If the Carry Spread turns negative or the Health factor trends down toward 100%, treat this as an early warning and consider actions to improve the stVault’s economics — repaying stETH, supplying more ETH, or rebalancing.

If the Health Factor of the stVault drops below 100%, please refer to the stVaults Health Emergency Guide.

Net staking APR

Net staking APR shows the estimated yearly return from staking in the stVault after all protocol and node operator fees, but without taking into account stETH Liability growth due to the daily stETH rebase.

This metric should be monitored relative to the stETH APR:

• If Net staking APR is higher than stETH APR
  • The stVault is expected to outperform plain stETH staking before Liability growth.
  • This is generally a healthy situation.
• If Net staking APR is lower than stETH APR
  • The stVault underperforms plain stETH on a fee-adjusted basis.
  • This is a signal to pay attention: together with Carry Spread and the Health factor it may indicate that the stVault configuration or performance needs to be reviewed.

Persistent underperformance (Net staking APR < stETH APR) can contribute to a negative Carry Spread over time and, consequently, to a deterioration in the Health factor.

stETH liability and Utilization ratio

stETH Liability is the amount of stETH that the stVault owner has minted in the stVault, backed by the ETH collateral.

This value increases daily because of the stETH rebase.

The stETH Liability details view also shows:

• Total stETH minting capacity (constrained by the Reserve Ratio)
• Reserve Ratio (RR)
• Forced Rebalance Threshold (FRT)
• Utilization ratio

The key condition to monitor is that the stVault’s Liability remains safely within its capacity:

• stETH Liability should not exceed the capacity defined by the Reserve Ratio.
• In practice, this is equivalent to keeping the Utilization ratio below 100%.

When Utilization ratio approaches 100%, there is little remaining capacity to mint additional stETH.

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The two thresholds are separate. The Reserve Ratio sets the minting capacity, and the Utilization ratio measures how much of it is used. Forced rebalancing is triggered by the Forced Rebalance Threshold, which sits below the Reserve Ratio, and it is the Health factor that tracks that boundary.

An stVault can therefore be above 100% Utilization and still healthy: no further stETH can be minted, but nothing is forced. The Health emergency guide works through such a case — Utilization 101% with a Health factor of 100.1%.

If Utilization reaches or exceeds 100%, the stVault is at its intended Liability limit and the buffer before the forced rebalancing zone is thin. The Vault Owner should review the position and take corrective actions as described in the stVaults Health Emergency Guide.