User Docs

So who benefits from tapETH?

Tapio is focused on providing excellent real yield for users, however we want to establish ourselves as the "middleware" for LST and ETH liquidity. As such, a large focus is on whales and institutional holders of ETH and what they specifically value - real yield, stability, security and usability.
tapETH is DeFi native and hence will be integrated with as many protocols and ecosystems as possible, however it should be the first place a holder of ETH/LSTs will come to - benefiting from the increased APR (which is of course real yield). As a result, Tapio Finance serves as the fundamental liquidity protocol, with holders establishing it as their "base", and then are able to either hold and forget, or degen to their heart's desire.

ETH and LST Holders

  • Greater utility for Liquid Staked versions of ETH
  • LP Holders can provide liquidity and benefit from the added utility of tapETH (since it’s an LP token, albeit not an LP share)
  • Ability to forego staking/unstaking processes, and can simply swap an LST for ETH
  • Complex and unique reward models for various LSTs are unified into a single asset, dramatically improving the user experience
  • Better yield than liquid staking or native beacon chain staking due to the various fees generated by the tapETH liquidity pool
  • Users can utilize their tapETH within DeFi just as any other tokens, allowing them to dramatically increase yield
  • Serves as a peg against native ETH, so holders can benefit from the price action of ETH, while also generating excellent yield which can be realized, and liquid immediately

LST Protocols

  • Allows late entrants to maintain competitiveness as LSTs can inherit the inherent utility of tapETH
  • Have access to an established and native liquid market for their LST, allowing for swapping to and from native ETH, and other LSTs
  • Reliable and stable pricing alleviates fears of constant depegging due to low liquidity or LP withdrawals - especially for newly released LSTs
  • Benefit from the simple user experience of tapETH, allowing potential users to gain exposure just by interacting or buying the tapETH token itself
  • Allows LSTs to be exposed to arbitrage opportunities for traders, increases demand and volume
  • Additional fees for both protocols and thereby validators, benefiting from the fees generated by tapETH, but also the ability to utilize it within various DeFi primitives