The LSTfi space continues to evolve and supply DeFi with innovative products. In this article, StakeWise dive deeper into the architecture of their V3, discuss how it is different from the other liquid staking protocols, and why it may or may not be a platform of choice for the average staker.<h2>What is StakeWise V3?</h2>StakeWise V3 is a new version of StakeWise, a liquid staking protocol on Ethereum that has been active since 2021 and currently has over <a href="/provider/stakewise?category=all&amp;sort=staking_wallets&amp;timeframe=30d&amp;order=desc" target="_blank" rel="noopener noreferrer">100,000 ETH staked</a>.The planned upgrade to V3 was originally unveiled by StakeWise in October 2022 and is now ready to be shipped according to the recent announcements.At the core of StakeWise V3 is the idea that liquid staking should not be exclusively available on specific nodes or staking protocols. In fact, ETH staked in any validator could be made liquid if a single liquid staking token standard existed.<img src="https://tidy-ball-c49dc59f59.media.strapiapp.com/what_is_stakewise_v3_9c2b13ce3c.png" alt="what-is-stakewise-v3.png">StakeWise V3 seeks to offer such a standard with osETH, its overcollateralized LST. osETH accrues staking rewards when held, and can be minted for any validator in the network. The token can be used for farming, trading, and leverage opportunities involving staked ETH can be universally accessible for all nodes on Ethereum, even those outside of liquid staking protocols.&nbsp;osETH is expected to draw interest from solo stakers, DAOs, staking companies, and other organizations, who all prefer to stake independently instead of pooling capital across multiple providers.Yet, ordinary stakers can take advantage of universal access to osETH too, because it empowers them to choose specific nodes and control how their ETH is staked while keeping it liquid.<img src="https://tidy-ball-c49dc59f59.media.strapiapp.com/os_ETH_Vaults_8801782694.png" alt="osETH-Vaults.png">For them, StakeWise has built a marketplace of node operators where users can browse offers and seek specific terms like a low staking fee, slashing insurance, MEV strategy, location of nodes, and other factors. Any ETH staked this way remains liquid with osETH.We expect to see a healthy mix of both the familiar names and those rising in popularity in the marketplace, such as Chorus One, Stake.Fish, SenseiNode and Gateway.fm, to name a few. We compiled a list based on the previous StakeWise announcements - see below.<img src="https://tidy-ball-c49dc59f59.media.strapiapp.com/stakewise_partners_f403c176c8.png" alt="stakewise-partners.png">The major overhaul in StakeWise’s approach to staking should not worry its existing users because the current platform will continue to exist alongside StakeWise V3. Any existing users of StakeWise willing to migrate their stake to V3 can do it with one simple transaction, according to this migration overview.&nbsp;It is expected that the new platform will debut in November.&nbsp;<h2>How StakeWise V3 works</h2>Between osETH and the operator marketplace, StakeWise’s liquid staking architecture is radically different from others.In the infographic below we highlight the key areas where StakeWise is distinct from the traditional liquid staking model.<img src="https://tidy-ball-c49dc59f59.media.strapiapp.com/stakewisev3_1da2ef1d6a.png" alt="stakewisev3.png">As we can see, StakeWise V3 requires operators and solo stakers to deploy Vaults - non-custodial staking pools that run validators. Launching validators through a Vault is the prerequisite for making staked ETH on specific nodes liquid.&nbsp;Vaults serve an important purpose in the V3 architecture: they allow stakers and operators to automate the flow of funds in and out of staking. In effect, they streamline the operations and keep the relationship between stakers and operators non-custodial and their stake liquid.Every Vault uses the ETH deposits it receives to launch its own validators. These validators remain isolated, not sharing rewards or penalties with other Vaults. However, together all Vaults form a network that powers osETH earnings, as stakers in Vaults access liquidity through osETH.Users without a stake in Vaults can also stake with osETH by simply acquiring the token on the market and holding it to collect the staking rewards it accrues. When done, they can sell the token back to the market, or redeem it for some underlying amount of ETH from the protocol.This architecture effectively turns StakeWise V3 into a liquid staking middleware that allows stakers and node operators to engage in business on mutually acceptable terms, and access liquid staking through self-custody instead of delegation.Learn more about StakeWise v3 and track metrics like Reward Rate and Net Staking Flow via the <a target="_blank" rel="noopener noreferrer" href="https://www.stakingrewards.com/provider/stakewise?category=all&amp;sort=staking_wallets&amp;timeframe=30d&amp;order=desc">Stakewise provider profile</a>.Watch Jordan Sutcliffe's (BD Lead, StakeWise) keynote <a target="_blank" rel="noopener noreferrer" href="https://www.youtube.com/live/HA2f0XhRN_8?si=v_wW9CbuANdc-xzV&amp;t=7755">"Exploring the Potential of Stakewise v3"</a> at the Staking Summit 2023

Reinventing liquid staking with StakeWise V3