Filip Rawlik

2 posts
rstETH restaking guide on Mellow

<p>P2P.org is excited to walk you through an exciting opportunity from Re7 Labs- the rstETH vault, a liquid restaking solution built on the Mellow protocol.</p><p><strong>Understanding the rstETH Vault</strong></p><p>The rstETH vault is curated by Re7 Labs and built on the Mellow protocol, offering an innovative approach to liquid restaking. Mellow provides both a user-friendly interface and the underlying protocol infrastructure, enabling the creation of Liquid Restaking Tokens (LRTs).</p><p>At the core of the vault's functionality is Symbiotic - a permissionless restaking protocol that offers flexible mechanisms for decentralized networks to coordinate node operators and security providers. The protocol's flexible and neutral design provides unique benefit for Mellow users.</p><p>Mellow allows the permissionless creation of modular LRTs (Liquid Restaking Tokens). It offers a series of vault smart contracts with different and unique properties, managed by LRT curators. One of these LRTs is rstETH, which represents an innovative approach to liquid restaking. When you deposit assets into the rstETH Vault, Mellow's smart contract mints LRT tokens at your request. The amount of rstETH tokens you will receive is almost equivalent to a 1:1 wstETH:rstETH ratio.<br></p><p><strong>Restaking flow on the </strong><a href="http://rsteth.mellow.finance/?ref=p2p.org"><strong><u>Mellow</u></strong></a><strong> side</strong></p><p>Follow these three steps to begin your restaking journey with the rstETH vault.<br><strong>Here's how to get started:</strong><br></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2025/01/rstETH-steps.jpg" class="kg-image" alt loading="lazy" width="2000" height="418" srcset="https://p2p.org/economy/content/images/size/w600/2025/01/rstETH-steps.jpg 600w, https://p2p.org/economy/content/images/size/w1000/2025/01/rstETH-steps.jpg 1000w, https://p2p.org/economy/content/images/size/w1600/2025/01/rstETH-steps.jpg 1600w, https://p2p.org/economy/content/images/2025/01/rstETH-steps.jpg 2000w" sizes="(min-width: 720px) 720px"></figure><p><strong>Let’s dive deeper into the details.</strong></p><ol><li>Go to the rstETH restaking Vault page:<br><a href="https://rsteth.mellow.finance/?ref=p2p.org"><u>rstETH.mellow.finance</u></a></li></ol><p><img src="https://p2p.org/economy/content/images/2025/01/1_mainpage-1.png" alt="1_mainpage.png" loading="lazy"></p> <ol start="2"> <li> <p>Connect your wallet, review, and confirm the terms.<br> <img src="https://p2p.org/economy/content/images/2025/01/2_login.png" alt="2_login.png" loading="lazy"></p> </li> <li> <p>Choose the tokens you want to deposit and proceed (note that your tokens will be converted to wstETH).<img src="https://p2p.org/economy/content/images/2025/01/4_select_currency.png" alt="4_select_currency.png" loading="lazy"></p> </li> <li> <p>Click the deposit button and follow the prompts to sign the transactions. This will wrap your stETH into wstETH and deposit it into the Vault.<br> <img src="https://p2p.org/economy/content/images/2025/01/5_enter_amount.png" alt="5_enter_amount.png" loading="lazy"></p> </li> <li> <p>Congratulations!🎉 As a result, you receive rstETH.</p> </li> <li> <p>You can put your rstETH to work and unlock the opportunities offered by Mellow Your rstETH tokens are compatible with a wide range of DeFi protocols.</p> </li> <li> <p>Now, click on the protocol where you’d like to use your rstETH. For example, let’s select GearBox.<br> Be cautious, as you’ll be redirected to the protocol’s official website. In this case, it will be: <a href="https://app.gearbox.fi/?ref=p2p.org">https://app.gearbox.fi</a></p> </li> </ol> <p><img src="https://p2p.org/economy/content/images/2025/01/image--16-.png" alt="image (16).png" loading="lazy"></p> <p>a) Click on the protocol where you’d like to use your rstETH. For example, let’s select Gearbox Protocol.</p> <p>b) Review the terms, parameters, strategy, and any other features the protocol offers to get the most of your rstETH. Remember, the metrics are only estimations, so take the time to assess everything carefully and ensure they align with your goals before proceeding.</p> <p>c) Please pay attention that behind the scenes, the protocol will borrow wstETH to put them into the rstETH vault. And the looping strategy in general, works only when borrow rate is lower than token base status.</p> <p>d) It is important to thoroughly understand the risks associated with looping strategies before using this service. To make the strategy better, Gearbox uses the mint price from the rstETH contract instead of DEX-based price feed.</p> <p>e) Once you’ve reviewed all the details and feel confident about moving forward, follow these steps: connect your wallet, specify the amount of rstETH you want to deposit, adjust the parameters if needed, and click the “Deposit” button to finalize your transaction. Make sure to double-check everything before confirming.</p> <p>f) Now, you can take advantage of the potential benefits provided by the rstETH protocol and its restaking strategy, while accessing the potential benefits from Gearbox (in this example).</p> <p><strong>What is </strong><a href="https://symbiotic.fi/?ref=p2p.org"><strong><u>Symbiotic</u></strong></a><strong> and why is it important in this vault?</strong><br>Symbiotic is a permissionless restaking protocol designed to support decentralized networks by aligning node operators and security providers. According to Symbiotic, the importance of this vault lies in its ability to provide a secure, adaptable and efficient restaking framework.<br><br><strong>The protocol’s versatile and neutral design delivers unique opportunities :</strong></p><ul><li>Immutable core smart contracts on Ethereum.<br></li><li>Flexibility for all ecosystem players: Network builders control their restaking implementation, operator selection mechanics, and reward and slashing logic.<br></li><li>Capital-efficient multi-asset design.</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2025/01/image--17-.png" class="kg-image" alt loading="lazy" width="2000" height="938" srcset="https://p2p.org/economy/content/images/size/w600/2025/01/image--17-.png 600w, https://p2p.org/economy/content/images/size/w1000/2025/01/image--17-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2025/01/image--17-.png 1600w, https://p2p.org/economy/content/images/2025/01/image--17-.png 2000w" sizes="(min-width: 720px) 720px"></figure><p><strong>What is </strong><a href="https://mellow.finance/?ref=p2p.org"><strong><u>Mellow</u></strong></a><strong>?</strong><br>Mellow is a modular infrastructure designed for creating Liquid Restaking Tokens (LRTs) with varying strategic frameworks. The system is fully permissionless, agnostic to underlying restaking protocols, and compatible with any assets.</p><p><strong>Key Highlights:</strong><br> <strong>•</strong> <strong>Flagship LRT for Symbiotic: </strong>Mellow will become the first and flagship LRT within the Symbiotic ecosystem.</p><p> <strong>•</strong> <strong>Security Approved: </strong>As a member of the Lido Alliance, Mellow has successfully passed<a href="https://research.lido.fi/t/mellow-lido-alliance-proposal/7557/11?u=vladismint&ref=p2p.org"> <u>security evaluations</u></a> by the Alliance group.</p><p> • <strong>Strong Backing:</strong> Mellow’s 2021 fundraising round was led by Arrington Capital, ParaFi, and Robot VC, with contributions from Lemniscap, Primitive, and other notable VCs.</p><p><strong>Why Mellow?</strong><br>According to Mellow, their team has extensive expertise in developing advanced vaults and liquidity management systems. They highlight their experience in bootstrapping wstETH liquidity on mainnet for Lido and collaborating with leading protocols like Olympus, Velodrome, Aerodrome, Gearbox, and zkBob, where they’ve delivered sophisticated assets and ALM strategies.</p><p><strong>Third-Party Incentives</strong><br>For additional details, visit<a href="https://app.mellow.finance/restake?ref=p2p.org"> <u>Mellow.Finance</u></a> and<a href="https://app.symbiotic.fi/restake/wsteth/?ref=p2p.org"> <u>Symbiotic.Fi</u></a>. Please note that<a href="http://p2p.org/?ref=p2p.org"> <u>P2P.org</u></a> does not manage or take responsibility for these incentive programs.</p><p><strong>Risks assessment&nbsp;</strong><br>This information is provided for general purposes only and reflects P2P.org’s subjective view of the project. It is not professional financial advice. Before deciding to participate, you should carefully review all materials on the Mellow and Symbiotic websites, thoroughly evaluate the associated risks, and consult with appropriate legal, financial, and tax advisors. Failure to do so may result in significant financial losses,<a href="http://p2p.org/?ref=p2p.org"> P2P.org</a> will not be held liable for any decisions made based on the information provided. Proceed at your own risk.</p><p> • <strong>Audited Smart Contracts:</strong> Symbiotic and Mellow smart contracts have been audited. The reports are available<a href="https://github.com/symbioticfi/collateral/tree/main/audits?ref=p2p.org"> <u>here</u></a> and<a href="https://github.com/mellow-finance/mellow-lrt/tree/main/audits?ref=p2p.org"> <u>here</u></a>.</p><p> • <strong>Immutable Symbiotic Contracts:</strong> Symbiotic smart contracts cannot be changed by the Vault curator.</p><p> • <strong>Controlled Upgrades for Mellow Contracts:</strong> Mellow smart contracts are upgradable,<a href="http://p2p.org/?ref=p2p.org"> <u>P2P.org</u></a> as the Vault co-curator cannot modify the Vault contract or withdraw user funds. The responsibility for upgrades lies with a Lido &amp; Mellow-managed multisig, meaning the primary risk relates to the security of that multisig.</p><p><em>Guide by: Denis Kozlov</em></p>

Filip Rawlik

from p2p validator

The Institutional Crypto Playbook

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Filip Rawlik

from p2p validator