Overview
StakeStone launched as an omnichain liquid staking protocol that addresses a specific problem in the LST landscape: liquidity fragmentation across chains. While most LSTs (stETH, rETH) are primarily concentrated on Ethereum mainnet with bridged versions on L2s, StakeStone's STONE token is natively omnichain — deployed via LayerZero's OFT (Omnichain Fungible Token) standard, enabling seamless transfer across supported chains without traditional bridging.
Users deposit ETH on Ethereum, which is staked and deployed into yield strategies. In return, they receive STONE, which can be natively used on Ethereum, Arbitrum, BNB Chain, Manta, Scroll, and other chains. The yield-bearing mechanism means STONE appreciates against ETH over time (non-rebasing), with yield sourced from Ethereum staking and additional DeFi strategies.
StakeStone's strategy layer supports multiple yield sources — Ethereum native staking, EigenLayer restaking, and other DeFi strategies — managed through an adaptive portfolio optimization approach. The protocol aims to serve as the omnichain ETH liquidity standard for emerging L2s and new chains that need ETH liquidity.
The protocol has attracted partnerships with several L2 ecosystems seeking native ETH liquidity, using STONE as an incentivized deposit mechanism for new chain launches.
Smart Contracts
Omnichain Architecture
StakeStone's architecture combines an Ethereum-based vault (handling deposits, staking, and strategy management) with LayerZero OFT contracts on each supported chain. The vault manages ETH deposits and yield strategies, while OFT contracts handle cross-chain token transfers and balance synchronization.
Strategy Layer
The protocol's strategy contracts allocate deposited ETH across multiple yield sources. Strategy management includes rebalancing, yield optimization, and risk management across different yield venues. This active management layer adds utility but also complexity.
LayerZero Dependency
STONE's omnichain functionality depends entirely on LayerZero's messaging infrastructure. Cross-chain token transfers, yield distribution, and balance updates all flow through LayerZero. This creates a critical infrastructure dependency.
Security
Audit History
StakeStone has been audited by security firms including Quantstamp. The audit scope covers both the Ethereum vault contracts and the omnichain OFT implementation. However, the audit depth is less extensive than major LST protocols.
Cross-Chain Risk
The omnichain architecture introduces cross-chain messaging risks. LayerZero message failures, exploits in the messaging layer, or issues with OFT balance synchronization could impact STONE holders on any supported chain. Cross-chain protocols inherently have a larger attack surface than single-chain protocols.
Strategy Risk
Like oETH, StakeStone's multi-strategy yield approach introduces dependency on external DeFi protocols. Each strategy venue is a potential vulnerability source.
Track Record
StakeStone's operational history is relatively short, and the protocol has not been tested through extreme market conditions at scale. The limited track record means security confidence must be lower than for established protocols with years of incident-free operation.
Decentralization
Strategy Management
Strategy allocation decisions are controlled by the protocol team and governance, with limited decentralization in the early phase. The active strategy management model requires centralized decision-making that conflicts with decentralization principles.
LayerZero Governance
STONE's omnichain functionality delegates trust to LayerZero's decentralized verifier network (DVN) model. The degree of decentralization in LayerZero's message verification affects STONE's cross-chain security.
Validator Selection
ETH staking is delegated to selected validator sets. The selection process and diversification of validators affect both decentralization and security. Details on validator selection criteria and concentration are less transparent than major LST protocols.
Adoption
TVL & Growth
StakeStone has attracted moderate TVL, typically $100-500M, driven significantly by partnerships with new L2 ecosystems that incentivize STONE deposits. TVL has been volatile, fluctuating with incentive program cycles.
L2 Partnership Model
StakeStone's primary growth strategy involves partnering with new chains and L2s (Manta, Scroll, and others) to serve as the native ETH liquidity layer. These partnerships often include co-incentive programs. This B2B distribution model is differentiated but ties adoption to partner chain success.
DeFi Integration
STONE has moderate DeFi integration on supported chains — DEX pools, some lending protocol acceptance, and participation in yield farming programs. Integration depth varies by chain, with more mature chains having better STONE utility.
Tokenomics
Token Status
StakeStone's governance token has been announced with points programs running for future distribution. The tokenomics are still developing, and the community is accumulating points ahead of a potential token launch.
Revenue Model
Protocol revenue comes from management fees on yield generated and potential fees on cross-chain transactions. Revenue is early-stage and largely dependent on TVL growth and yield performance.
Incentive-Driven Growth
Like many LRT/LST protocols, StakeStone's growth has been significantly incentive-driven (points, partner chain rewards). The sustainability of TVL without these incentives is the key adoption question.
Risk Factors
- LayerZero dependency: STONE's core omnichain functionality relies entirely on LayerZero. A LayerZero exploit or outage would directly impact STONE on all chains.
- Cross-chain complexity: The omnichain architecture creates a larger attack surface than single-chain LSTs, with potential vulnerabilities in messaging, balance synchronization, and multi-chain state management.
- Early-stage protocol: Limited operational history means less battle-testing. Security confidence is lower than for established protocols.
- Incentive-dependent TVL: Significant TVL comes from partnership incentive programs. Organic demand for STONE without incentives is unproven.
- Strategy management risk: Active multi-strategy yield management introduces external protocol dependencies and centralized decision-making.
- Partner chain risk: Adoption tied to new L2 ecosystems means STONE's success depends on these emerging chains attracting sustainable activity.
Conclusion
StakeStone offers a genuinely differentiated approach to liquid staking through its omnichain design. The LayerZero-native STONE token solves a real problem — ETH liquidity fragmentation across chains — and the L2 partnership model provides a unique distribution strategy. For emerging chains that need native ETH liquidity, StakeStone provides a ready-made solution.
The 4.8 score reflects the early-stage nature of the protocol: limited track record, cross-chain complexity risks, incentive-dependent adoption, and developing tokenomics all constrain the assessment. The omnichain thesis is compelling in theory, but execution and sustainability remain to be proven. StakeStone needs more time, more battle-testing, and organic adoption growth to justify a higher score.