ETHSP-A Primary Market
Primary market particpants are defined as any market actor directly involed in issuance, redemption, and arbitrage of ETHSP-A by interacting directly with the Portfolio Protocol.
As the primary sub-portfolio of ETHSP, ETHSP-A offers depositors exposure to the staking rewards and relative price volatility of Lido Wrapped Staked ETH (wstETH) and Rocketpool Staked ETH (rETH).
Issuance and redemption features may be accessed through the Portfolio Interface (opens in a new tab). Arbitrage must be performed via direct interaction with the Portfolio Protocol.
Due to transaction costs and robust inventory requirements for participating in the primary market, depositors should first explore secondary market offerings of ETHSP before attempting to interact directly with ETHSP-A.
- Approve the Portfolio Protocol contract to transfer wstETH and rETH.
- Deposit a combination of wstETH and rETH into the Portfolio Protocol ETHSP-A liquidity pool. Depositors recieve an ERC-1155 non-fungible token representing their position in the ETHSP-A liquidity pool.
- Depositors may then wrap this ERC-1155 into the ETHSP-A ERC-20 at their discretion.
- Unwrap the ETHSP-A ERC-20 token into an ERC-1155.
- Approve the Portfolio Protocol contract to transfer the ETHSP-A ERC-1155.
- Execute a withdraw, burning the ERC-1155. Depositor recieves a combination of wstETH and rETH tokens.
ETHSP-A relies on competitive arbitraguers consistently rebalancing its underlying Portfolio protocol liquidity pool. ETHSP-A is a single pool sub-portfolio of ETHSP.
Pool ID: TBA
Transaction costs are a primary concern amoung Ethereum arbitraguers and order flow providers. Various transcation types within the Portfolio protocol may be combined together, resulting in substantial gas savings.
The table below outlines a simulated gas report for relevant ETHSP-A arbitrage transactions.
|Transaction Type||Avg. Gas Cost (wei)|
|Single Swap from Portfolio Balance||299,295|
|Allocate from Portfolio Balance||335,996|
|Deallocate to Portfolio Balance||242,996|
|Allocate and Deallocate from Portfolio Balance||153,932|