ABSTRACT

In this whitepaper, we propose a new type of Liquid Staking Token ("LST") for Ether ("ETH"), called Pirex ETH or pxETH. pxETH is built on top of the Redacted DAO's Pirex platform and forms an integral part of the Dinero protocol, a protocol which aims to vertically integrate ETH staking, block proposal and building, a Remote Procedure Call ("RPC"), leverage, and yield stripping into one synergistic ecosystem comprising pxETH, the Redacted Relayer RPC, and the DINERO stablecoin. pxETH provides users with a liquid and fungible tokenized staked ETH which benefits from Ethereum staking rewards and other revenue forms such as MEV tips and block rewards. Future pxETH yield and pxETH withdrawals can be tokenized and used within decentralized finance ("DeFi").

CONTENTS

1. Introduction
   1. Motivation
   2. Overview
   3. Leveraged Yield
   4. Yield Stripping
   5. pxETH Liquidity
   6. pxETH in Dinero Protocol
   7. Omnichain
2. System Architecture
   1. pxETH deposits
   2. Validators
      1. ETH buffer
      2. pxETH withdrawals
      3. Withdrawal pool
   3. Validator reward distribution
      1. apxETH
      2. Yield stripping
   4. Omnichain
3. Risks
   1. Slashing
   2. Peg Stability
   3. Multisig Keys / Validator Keys
   4. Smart Contract Risks
4. Conclusion