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osToken redemptions#106

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ulieth wants to merge 2 commits intomainfrom
redemptions
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osToken redemptions#106
ulieth wants to merge 2 commits intomainfrom
redemptions

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@ulieth ulieth commented May 8, 2026

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Pull request overview

This PR expands and refines the osToken documentation by adding a dedicated “osToken Redemptions” page, rewriting key parts of “How osToken Works”, and updating multiple cross-links/navigation entries to point at the new/updated sections.

Changes:

  • Added a new osToken Redemptions doc and included it in the osToken sidebar.
  • Reworked How osToken Works structure/content (LTV, exchange rate, redemption/liquidation, burning) and updated related deep links.
  • Updated a few staker/protocol/operator docs for revised anchors and minor UI/icon adjustments.

Reviewed changes

Copilot reviewed 8 out of 9 changed files in this pull request and generated 7 comments.

Show a summary per file
File Description
staker/vault-staking.mdx Updates “Position Health” links to new anchors in osToken docs.
staker/risks.mdx Updates osETH depeg explanation link to the new redemption anchor.
sidebars.ts Adds the new osToken redemptions doc to navigation.
operator/start-operator.mdx Swaps the checklist icon asset.
docs/docs/stakewise-protocol/what-is-stakewise.mdx Updates oracle “Token Stability” deep link to the exchange rate section.
docs/docs/ostoken/ostoken-redemptions.mdx Adds new documentation explaining the redemption mechanism and flow.
docs/docs/ostoken/intro.mdx Updates osToken intro copy for clarity and positioning.
docs/docs/ostoken/how-ostoken-works.mdx Major rewrite/restructure of the osToken mechanics page.

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Comment thread staker/vault-staking.mdx

:::custom-info[Position Health]
If you mint osETH, your position gets a [health score](/docs/ostoken/how-ostoken-works#position-health) based on how much osETH you've minted relative to your staked ETH (the <Tooltip content="The ratio of minted osETH value to your staked ETH. The higher the LTV, the closer your position is to redemption or liquidation.">Loan-to-Value ratio</Tooltip>). There are four health levels — healthy, moderate, risky, and unhealthy. If your position becomes unhealthy, it may be subject to [redemption or liquidation](/docs/ostoken/how-ostoken-works#peg-maintenance). You can improve it anytime by burning osETH or adding more stake.
If you mint osETH, your position gets a [health score](/docs/ostoken/how-ostoken-works#ltv-ratio) based on how much osETH you've minted relative to your staked ETH (the <Tooltip content="The ratio of minted osETH value to your staked ETH. The higher the LTV, the closer your position is to redemption or liquidation.">Loan-to-Value ratio</Tooltip>). There are four health levels — healthy, moderate, risky, and unhealthy. If your position becomes unhealthy, it may be subject to [redemption or liquidation](/docs/ostoken/how-ostoken-works#redemption). You can improve it anytime by burning osETH or adding more stake.
Comment thread staker/risks.mdx
## osETH Depeg

osETH could temporarily trade below its fair value on secondary markets. The protocol's [redemption and liquidation mechanisms](/docs/ostoken/how-ostoken-works#peg-maintenance) create arbitrage incentives that keep the market price aligned with the underlying value.
osETH could temporarily trade below its fair value on secondary markets. The protocol's [redemption and liquidation mechanisms](/docs/ostoken/how-ostoken-works#redemption) create arbitrage incentives that keep the market price aligned with the underlying value.
Comment on lines +6 to +7
import Admonition from '@theme/Admonition';


1. Pin the snapshot to a finalized block so all the following steps read the same on-chain state.
2. Fetch all allocators (addresses that have minted osToken) from the subgraph.
3. Skip [Boost](../vaults/boost.mdx) positions. Each Boost leverage position has its own proxy contract that holds the osToken on the user's behalf, so those proxy addresses are removed from the minters list, and each user's leveraged shares are subtracted from their balance to avoid double-counting.
Comment on lines +20 to +25
## Minting

:::custom-notes[DAO-approved Vault Requirements]
To qualify for the 99.99% LTV threshold, Vaults must meet all criteria:
Only registered Vaults with active validator(s) and synced rewards can mint osETH.
The ability to mint also serves as a price stability mechanism. Minting helps prevent secondary market premiums on osETH.
You can get osETH through [simple staking](/staker/simple-staking), [vault staking](/staker/vault-staking), or by buying it on a DEX.
How much osETH you can mint against your stake depends on the LTV ratio.
After unstaking **41.667 ETH**, Bob's position health = **90%**
:::
<Image img={require('./img/grade.png')} alt="osETH position health grades - Healthy, Moderate, Risky, Unhealthy" />
<p style={{fontSize: '0.85em', color: 'gray', textAlign: 'center', marginTop: '-0.5rem'}}>
osToken is overcollateralized: more ETH or GNO is always staked than osToken issued. osToken is a repricing token: it accrues staking rewards by appreciating against the underlying asset, rather than increasing the token balance in the user's wallet.

A defining feature is that osToken can be minted against validators run by anyone – from solo stakers to professional operators – making access to liquid staking fully permissionless and non-custodial.
<Image img={require('./img/osToken_intro.png')} alt="osETH overview - liquid staking token for StakeWise" />
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