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Boost Feature

How Boost Works​

StakeWise Boost enhances staking rewards by using osTokens as collateral to borrow additional assets on Aave ↗. This borrowed capital is then staked again, creating a "looped" process that amplifies your staking position:

  • 6x looping in Vaults with 90% LTV
  • 14x looping in Vaults with 100% LTV
  • Up to 3x boost in staking rewards compared to normal staking
🚀 Boost Flow
osETH osTokens → Aave Aave Collateral → ETH Borrow ETH → Flow Stake Again → 💰 Enhanced APY
IconExpected Returns

The strategy extracts the difference between additional staking rewards and Aave borrowing costs, historically delivering 4-6% APY with peaks around 7%.

Safety Mechanisms​

IconLiquidation Protection

Max LTV: 93% – the maximum you can borrow against your osToken collateral

Liquidation Threshold: 95% – when positions become subject to liquidation

Safety Buffer: 2% – substantial protection before liquidation risk1

Price Stability Protection​

Boost eliminates depeg-related liquidation risks through Aave's use of StakeWise's native price feed for osTokens instead of volatile secondary market prices. This means osToken price fluctuations on DEXs cannot trigger liquidations, as your collateral value always equals the osToken redemption value rather than market price. This design ensures that temporary market volatility doesn't endanger your boosted position.

Escape Hatch​

As an additional safety layer, Boost includes an "escape hatch" mechanism that activates when positions approach the liquidation threshold. When any boosted position reaches 94.5% LTV, anyone in the community can trigger an automatic unboosting transaction to protect the user. The StakeWise core team actively monitors all boosted positions and will trigger these protective exits when necessary, with all funds always remaining under the original owner's control.

How to Use Boost​

IconPrerequisites

To use Boost, you need osTokens in your wallet. If you don't have any, see the staking guide → for instructions on minting osTokens from your stake.

Boosting Process​

  1. Go to your Vault page and find the "Boost" section
  2. Click plus (+) button to start the boost process
  3. Enter the amount of osTokens to boost in the input field
  4. Review boost details and confirm the transaction in your wallet
  5. View your position – Check your boosted osETH balance and enhanced APY in Position changes

Unboosting Process​

  1. Go to your Vault page and find the "Boost" section
  2. Click minus (–) button to start the unboost process
  3. Enter the amount of osTokens to unboost in the input field
  4. Confirm the transaction – Your request enters the unboost queue
  5. Monitor processing time and claim assets when available
IconUser Best Practices

Monitor your position regularly and exit Boost if APY remains negative for more than 7 consecutive days. Stay connected with the StakeWise Discord community for real-time updates on market conditions.

IconFurther Reading

1. The 2% safety buffer provides substantial protection because, based on historical analysis of 420 days: LTV increases only ~10.7% of the time (39 days per year), with the longest negative streak being just 7 days during Genesis Vault validator rotation. Even in extreme scenarios where borrow rates consistently exceed osToken APY by 2%, liquidation would take over a year. For every 1 day of LTV increase, users benefit from 8 days of LTV decline, making positions progressively safer over time. ↩

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