A KNOT is the Execution layer representation of a consensus layer validator. Every validator registered with Stakehouse is considered a KNOT; Each KNOT consists of the derivative tokens associated with the validator (dETH, savETH, SLOT, sETH).
Derivative Ether (dETH) tokens are minted when a user creates a KNOT by registering their validator with Stakehouse. Each KNOT created starts with 24 dETH which earns risk-free and slashproof staking rewards. Every dETH has a corresponding savETH.
savETH is the minted share of a validator on the consensus layer when a KNOT is created in the Stakehouse registry. To mint the savETH shares, the Balance Reporter must be run to ensure the validator is eligible and has a full 32 ETH. savETH ensures granular level traceability and accountability between the execution layer dETH and the underlying validator. It enables full fungibility for dETH at the universal level while users can retain ownership of their specific validator’s yield. The amount of savETH never goes up. The amount of corresponding dETH starts 1:1 with savETH, but the rate will increase as the validator earns staking rewards.
savETH tokens are the communication between dETH tokens and the underlying validator.
SLOT tokens are minted when a user creates a KNOT by registering their validator with Stakehouse. These tokens represent the management rights of the validator and collect all network revenue including MEV and gas fees. They assume the slashing risk for the entire validator.
A savETH index is an aggregate of savETH from one or more KNOTs. It gives the owner an easy place to manage and monitor their savETH all in one place. By default, a user has one savETH index, but they are able to create as many as they would like.
The Open Index is the default index for savETH. If a user does not specify another index when withdrawing dETH, their savETH will go to the Open Index. Users holding dETH without curating savETH will receive the Open Index yield. Anybody is allowed to curate savETH from the open index into their own index as long as they hold dETH.
A Stakehouse is a validator collective. When a user creates a KNOT and mints derivatives, they must also join or create a Stakehouse. SLOT tokens are fungible throughout a Stakehouse.
At any time a user may exit the Stakehouse registry. This is referred to as a Rage Quit. To do this a user must burn all derivatives associated with their validator and remove the KNOT. After this process, the user’s validator will still be staked in the consensus layer and they retain full management rights. After the Ethereum Foundation allows withdrawals, the user can unstake their ETH.
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