StakeWise Staked ETH
OSETH
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
StakeWise Staked ETH (osETH) demonstrates solid architectural and governance fundamentals, backed by over $1M in security audits from top-tier firms (SigmaPrime, Halborn, Consensys, ABDK, Statemind), immutable core contracts, non-custodial distributed validator technology (DVT), and an established founding team operating since 2018. The token functions as an appreciating liquid staking receipt token with around $360M in market backing and broad integration across DeFi.
However, the protocol's risk profile is heavily impacted by the November 2025 exploit. As established in the Security and Audit History section: "In the November 2025 Balancer V2 exploit (root cause: rounding manipulation in batched swaps, ~$116M total drained across protocols), osETH held in Balancer pools was directly affected. StakeWise reported that approximately 5,041 osETH (valued at roughly $19–25.9M in aggregate exposure alongside osGNO) was drained, and that DAO emergency actions recovered $20.7M — 73.5% of the affected osETH and osGNO... Approximately 26.5% (~$6.9M) remained unrecovered as of early November 2025, with StakeWise committing to a repayment plan for the shortfall."
Because this qualifying red-flag event resulted in material losses exceeding $1M that remain partially unrecovered, the overall score is subject to the red-flag cap rule (capped at 5.0, down from the uncapped weighted average of 5.73). Secondary concerns include narrow community breadth (~1,870 holders) and thin secondary liquidity.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About StakeWise Staked ETH (OSETH)
StakeWise Staked ETH (osETH) is the liquid staking receipt token of the StakeWise V3 protocol, deployed on the Ethereum and Arbitrum One networks. Developed by a team founded in 2018 and governed by the StakeWise DAO through the SWISE token, the protocol transitioned from V2 to V3 to offer a non-custodial staking architecture. The token represents staked Ether and allows users to access liquidity while participating in Ethereum proof-of-stake validation.
The supply of osETH is elastic, minting new tokens upon ETH deposits and burning them upon redemption. Staking rewards accumulate through an appreciating redemption value rather than through a rebasing token mechanism. The protocol incorporates over-collateralization to protect against validator slashing and utilizes Distributed Validator Technology (DVT) across its node operator network, allowing osETH to be integrated into broader decentralized finance (DeFi) platforms and restaking systems such as EigenLayer.
While StakeWise's core smart contracts have undergone independent audits from firms including SigmaPrime, Halborn, Consensys, ABDK, and Statemind, the protocol was impacted by the November 2025 Balancer V2 exploit. Approximately 5,041 osETH was drained from Balancer liquidity pools during the multi-protocol incident. StakeWise DAO emergency actions recovered $20.7 million (representing 73.5% of the affected osETH and osGNO funds), leaving roughly $6.9 million unrecovered, for which the DAO announced a repayment plan. The token also contends with thin secondary-market liquidity and a concentrated holder base.