What is Pirex ETH?

Pirex ETH, developed by Redacted, offers a user-friendly, liquid staking solution that serves as the foundation for the Dinero protocol.

Why stake with Pirex ETH?

Staking through Pirex ETH is meant to provide a simpler solution than solo staking. Solo staking, while effective, demands a technical understanding. It also mandates a 32 ETH deposit for Ethereum, poses risks of slashing and offline penalties, and locks funds for extended periods. Meanwhile, staking through centralized alternatives entrusts your validator keys to a centralized third-party, introducing risks of malice, attacks, or regulatory actions.

Liquid staking, as implemented by Pirex ETH, sidesteps these pitfalls. It offers non-custodial staking with professional validator oversight. Users can freely stake tokens and simultaneously tap into their liquidity for DeFi use cases, all while optimizing individual rewards and amplifying overall staking participation.

What is pxETH?

To obtain pxETH, users can deposit their ETH into Pirex ETH. pxETH is designed to maintain a 1:1(ish) peg with ETH, offering users liquidity and the opportunity to participate in various yield-earning activities throughout DeFi. pxETH is a flexible option for those willing to forgo staking rewards to pursue other forms of yield.

What is apxETH?

To obtain apxETH, users can deposit pxETH into Dinero's auto-compounding rewards vault. Depositing pxETH into the vault results in boosted staking yield for apxETH, as not all pxETH is staked. In other words, each apxETH benefits from staking rewards from more than one staked ETH, amplifying apxETH's yield.

Why two tokens?

The decision to implement a two-token model with pxETH and apxETH stems from our aim to optimize both liquidity and yield. By distinctly separating these components we can ensure that pxETH’s use case is centered around providing enhanced liquidity while apxETH’s use case is to maximize staking rewards.

What is yield stripping?

Yield stripping lets users tokenize pxETH returns into ERC-1155 NFTs that represent future pxETH and its rewards. These semi-fungible NFTs can be traded, thus offering opportunities to leverage, hedge, and speculate on future ETH staking returns.

What is Pirex ETH’s role in the Dinero protocol?

Pirex ETH plays a foundational role in the Dinero protocol. ETH underlying pxETH is used to operate validators on the Ethereum Network, which power the operations of the Redacted Relayer, including block proposal and building. apxETH, which users receive when they deposit pxETH into the rewards vault, can act as collateral for DINERO stablecoin loans. DINERO is the currency of the Redacted Relayer, with all MEV tips being paid in DINERO.