Docs / LOXETH / Start
Using LOXETH
Where a liquid staking receipt is accepted, and the three things worth checking before you deposit one.
What you can do with it
- Hold it. The rate rises whether or not you do anything else.
- Use it as collateral. Lending markets on Robinhood Chain accept it, so a position can be borrowed against without selling the underlying.
- Provide liquidity. Pair it against ETH or the settlement token.
- Vote with it. Governance participation does not require unstaking.
Three things to check before depositing
- Is the venue using the contract rate or a market rate? A venue that values LOXETH at the contract rate will treat a market discount as an opportunity to liquidate you cheaply.
- What is the liquidation threshold? A receipt that earns is still a receipt; it is not worth exactly one ETH, and a thin market can move it further than expected.
- Is the market deep enough for your size? Check the position against the pool's depth, not against the quoted price.
Composability is the point
The reason to prefer a receipt over a rebasing balance is that other contracts can reason about it without special support. That is what makes it usable as collateral, in a pool, or in a vault — and it is why the exchange rate, not your balance, is what moves.