For the complete documentation index, see llms.txt. This page is also available as Markdown.

wstETH

The KPK wstETH Earn Pool channels deposits into Gearbox’s Credit Account system across selected collateral markets. Yield comes from overcollateralised lending rates on top of the underlying Lido staking rate. Strict utilisation caps, quota limits, and dual-oracle pricing help preserve liquidity buffers and mitigate market risks.

The vault provides exposure to risk-adjusted wstETH yield.

Key information

Deposit token

wstETH

Chain

Ethereum

Protocol

Gearbox

Pool address

Vault token

kpkwstETH

Vault standard

ERC-4626

Interest rate model

Utilisation-based

Target utilisation

~92%

Liquidity buffer

~8%

Indicative lending rate at target

~3.0-4.0% APY, including the Lido staking rate and temporary GEAR incentives

Indicative borrow rate at target

~0.5% APY above the underlying Lido staking rate

Performance Fee

0%, fees apply on the borrower side

Strategy

Liquidity from this pool is lent to Gearbox borrowers through the Credit Account mechanism. Borrowers use whitelisted LSTs and ERC-4626 vaults as collateral to build leveraged looping strategies, typically targeting AMM, restaking or staking yields.

The pool doesn’t allocate funds itself. Instead, it relies on borrower activity within pre-defined pool parameters set by KPK. Yield comes primarily from borrower interest rates. Temporary GEAR and other token incentives may supplement returns and are distributed via Merkl.

This pool targets multiple collaterals within the Ethereum ecosystem, enabling leveraged restaking strategies under tight utilisation controls. Native minting and withdrawals are enabled for various assets within Gearbox. Borrowers can enter the native unstaking queue directly through the protocol, allowing positions to unwind gracefully. This avoids common pitfalls in lending markets without native exit support and enables smoother user onboarding, offboarding, and liquidations.

Risk framework

The pool’s parameters follow KPK’s Curation Risk Framework, which governs asset due diligence, tiering, monitoring, and response procedures. All configuration and parameter updates are recorded in the Gearbox Change Log. Entries include scope, rationale, and transaction references for full transparency.

Risk-tier snapshot

Each asset in a KPK Gearbox market is linked to two price feeds: a main oracle and a reserve oracle. These typically combine a market-rate oracle (e.g., Chainlink or RedStone) and a fundamental oracle (reflecting the underlying exchange or redemption rate). The main oracle is used for account valuation and liquidation checks, while the reserve oracle serves as a safety reference during collateral withdrawals or external calls. This dual-oracle setup balances market accuracy with resistance to manipulation, protecting LPs during volatility events such as LST depegs.

Collateral
Issuer
Risk tier
Quota limit
Liquidation threshold
Main oracle
Reserve oracle

ETH+

Reserve

B

3,000

93%

Fundamental

Fundamental

Beefy Curve ETH+/WETH

Beefy

C

3,000

90%

ERC4626

ERC4626

Beefy Balancer rETH/WETH

Beefy

C

3,000

90%

ERC4626

ERC4626

savETH

Avant

C

3,000

91.5%

ERC4626 + CL

ERC4626 + RS

tETH

Treehouse

C

500

90%

Fundamental

RedStone

Beefy Balancer osETH/​WETH

Beefy

C

500

90%

ERC4626

ERC4626

Beefy Balancer tETH/wstETH

Beefy

C

500

90%

ERC4626

ERC4626

Figures are indicative and may change. For current values, see the Gearbox Change Log or Gearbox UI. Quota limits are displayed in native units.

Key risks

  • Collateral, market and price risk

  • Oracle manipulation, staleness, or failure

  • Liquidity crunches and liquidation cascades during stress events

  • Borrower strategy underperformance or insolvency (bad debt)

  • Smart contract vulnerabilities and external dependency risks

These risks are actively monitored and managed, but cannot be fully eliminated. For more information, see the KPK-curated Products Disclaimer.

Governance and controls

All critical changes flow through a layered governance structure designed for transparency, operational security, and rapid response when needed. Market parameters (collaterals, oracles, debt limits, etc.) are updated by KPK through the Market configurator, with changes executed via a time-locked process:

  • Market configurator: Configures curated markets. One configurator can manage multiple markets 0x1b265b97eb169fb6668e3258007c3b0242c7bdbe

  • Timelock: Enforces a minimum 24-hour delay between approval and execution of pool changes 0xB680c52D339656C5808Df9c426DF1A2103Ed945a

  • Emergency admin: Can perform a limited set of emergency actions (e.g. pause pools) without delay to protect solvency. See Gearbox Permissionless Docs for more details. 0x4ad2419dc6de75c3f57d7b6aa200d494c74c1443

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