User Docs

What is Tapio Finance?

Introducing tapETH - the first utility driven LP token for LST liquidity
Liquidity is crucial within DeFi, and is by far the most significant downstream usecase for LSTs (usually partnered with native ETH), however once you do so and receive the resulting LP token - there isn't much you can do with it and the "liquid" staking journey ends abruptly. Furthermore, we're seeing heavy fragmentation of LST liquidity across the ecosystem, with individual protocols having unique reward handling mechanisms, token models and architectures - leading to an ever growing long-tail.
Enter tapETH - the first utility driven LP token for the LST ecosystem, serving as a liquidity aggregator, and a hub for arbitrages. Fundamentally, it's a rebasing LP token representing various stable pools (which exist within Tapio Finance) between LSTs and ETH such as:
  • stETH-ETH
  • rETH-ETH
  • cbETH-ETH
Unlike with traditional liquidity pools within dexes, the resulting LP token you receive after depositing assets - tapETH, is pegged to native ETH and is able to be used within DeFi or as a token of exchange, just like any other asset. tapETH also earns the underlying LST rewards, as well as fees generated by the pools (such as swaps, redemptions and more) - providing excellent real yield APR, before you even start your DeFi journey.
tapETH can also be wrapped into wtapETH, where it utilizes an "interest rate" model for simple integration and use cross-chain.
Tapio Finance as a synthetic asset protocol, is able to dynamically adjust the pricing curves of the LST-ETH pools, resulting in excellent swaps and arbitrage opportunities, ensuring the stability of tapETH and also providing excellent usecases for our pools.
With Tapio Finance - LST liquidity provisioning isn't the end of the story, but merely the beginning.
Increase your capital efficiency by minting tapETH or wrapping it for wtapETH.
Our mission is to serve as the "middle layer" for liquidity between liquid staking protocols - and downstream applications within DeFi, regardless of ecosystem. We intend to incentivise loyal users and holders of our assets - however our focus is real yield above all else - generating fees as a protocol, and returning them to tapETH users. Our reason for existence is to augment ETH's position as the most productive asset within crypto.
An example flow of tapETH within DeFi.