Ethenix ($ETX)
Recent developments:
13.89% of the initial token allocation is held by the creator.
Creator token stats last updated: Sep 2, 2025 14:00
The following is generated by an LLM:
Summary
Liquid staking lottery protocol with amplified yield potential
Analysis
Ethenix ($ETX) presents a novel approach to liquid staking by gamifying yield distribution through a no-loss lottery system. The protocol uses stETH deposits to generate Lido staking rewards, then distributes accumulated yields weekly to randomly selected winners via Chainlink VRF, creating asymmetric reward potential while preserving principal. Key strengths include: 1) Combines capital preservation with amplified reward possibilities 2) Integrates proven DeFi components (Lido stETH, Chainlink VRF) 3) Transparent odds system based on time-weighted deposits 4) No lock-up periods or principal risk. However, significant concerns remain: 1) Creator holds 13.89% allocation (138M ETX), which could create sell pressure if unlocked 2) No vesting schedule or lock-up details provided for team tokens 3) Relies heavily on Lido's stETH which carries its own risks (de-pegging, slashing) 4) Limited transparency about development team and long-term roadmap 5) Protocol fee structure (15% of rewards) may deter users compared to traditional staking 6) No clear utility for ETX token beyond governance, creating questions about token necessity. The project addresses a legitimate UX problem in DeFi staking but faces adoption challenges against established alternatives.
Rating: 6
Generated with LLM: deepseek/deepseek-r1
LLM responses last updated: Sep 2, 2025 14:00
Original investment data:
# Ethenix ($ETX)
URL on launchpad: https://app.virtuals.io/prototypes/0x4cc97d1F374c79a667E8Fb9f7A4080aDA6180404
Launched at: Tue, 02 Sep 2025 13:54:59 GMT
Launched through the launchpad: Virtuals Protocol
Launch status: UNDERGRAD
## Token details and tokenomics
Token address: 0x4cc97d1F374c79a667E8Fb9f7A4080aDA6180404
Top holders: https://basescan.org/token/0x4cc97d1F374c79a667E8Fb9f7A4080aDA6180404#balances
Liquidity contract: https://basescan.org/address/0x2a74Ec2eeD7d984A42F0118d5E420F6316b7C106#asset-tokens
Token symbol: $ETX
Token supply: 1 billion
Creator initial number of tokens: Creator initial number of tokens: 138,947,967 (13.89% of token supply)
## Creator info
Creator address: 0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c
Creator on basescan.org: https://basescan.org/address/0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c#asset-tokens
Creator on virtuals.io: https://app.virtuals.io/profile/0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c
Creator on zerion.io: https://app.zerion.io/0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c/overview
Creator on debank.com: https://debank.com/profile/0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c
## Description at launch
What is Ethenix Protocol?
Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.
## Overview
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [](https://docs.ethenix.fi/#is-regular-steth-staking-compelling-enough)
Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [](https://docs.ethenix.fi/#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience)
Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [](https://docs.ethenix.fi/#deposit-phase)
Deposit Phase:
* Users deposit liquid staked ETH (stETH) into community-managed prize pools
* Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
* Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [](https://docs.ethenix.fi/#yield-generation)
Yield Generation:
* The combined pool automatically generates staking rewards through Lido's validator network
* Yield accumulates continuously as Lido rebases occur, typically daily
* All generated interest is captured by the protocol's automated yield harvesting system
#### [](https://docs.ethenix.fi/#prize-distribution)
Prize Distribution:
* Weekly draw periods conclude with Chainlink VRF-powered random winner selection
* Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
* Multiple prize tiers can be configured to reward different participant segments
#### [](https://docs.ethenix.fi/#capital-safety)
Capital Safety:
* Users maintain complete access to their principal deposits at all times
* No lock-up periods or withdrawal penalties during normal operation
* Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [](https://docs.ethenix.fi/#unique-value-propositions)
Unique Value Propositions:
* No-loss guarantee: Principal deposits remain fully withdrawable
* Amplified rewards: Winners receive significantly higher yields than traditional staking
* Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
* Community-driven: Decentralized operation without governance token dependencies
* Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
## Additional information extracted from relevant pages
<fetched_info>
""" [Creator profile on Virtuals Protocol](https://api.virtuals.io/api/profile/0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c)
{
"data": {
"id": 204784,
"displayName": null,
"bio": "zoho",
"avatar": null,
"userSocials": [
{
"id": 206299,
"provider": "rabby_wallet",
"walletAddress": "0x8E100cA591BBA6CE8b1d174F14312D3Dbc066c3c",
"metadata": null
}
],
"socials": {
"VERIFIED_LINKS": {
"TWITTER": "https://x.com/zoho_eth"
}
}
}
}
"""
""" https://docs.ethenix.fi/#unique-value-propositions
## https://docs.ethenix.fi/#unique-value-propositions
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#deposit-phase
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/#deposit-phase
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#prize-distribution
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/#prize-distribution
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#capital-safety
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/#capital-safety
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#yield-generation
## https://docs.ethenix.fi/#yield-generation
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#is-regular-steth-staking-compelling-enough
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/#is-regular-steth-staking-compelling-enough
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
"""
""" https://docs.ethenix.fi/#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience
## https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration
## [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#the-vision-behind-ethenix-protocol) The Vision Behind Ethenix Protocol
Ethenix draws inspiration from multiple proven financial success stories that demonstrate the power of innovative asset management and structured reward systems. Our primary inspiration comes from the UK's Premium Bonds, managed by NS&I (National Savings and Investments), which has attracted over £100 billion in assets from more than 22 million savers - nearly one-third of the UK adult population. This 65-year success story proves that people consistently prefer the excitement of potential large wins over guaranteed small returns.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#institutional-validation-through-etf-adoption) Institutional Validation Through ETF Adoption
The recent approval and explosive growth of Bitcoin and Ethereum ETFs in the United States provides additional validation for our approach. BlackRock's IBIT and Fidelity's FETH have collectively attracted over $50 billion in assets within their first year, demonstrating massive institutional appetite for crypto exposure through structured financial products. These ETFs have transformed how traditional finance views cryptocurrency - from speculative assets to legitimate portfolio components.
Similarly, Ethereum ETFs like BlackRock's ETHA and Grayscale's ETHE have shown that institutional investors recognize staking rewards as a fundamental value proposition. However, these products still deliver predictable, modest yields that don't capture the excitement potential of decentralized protocols. Ethenix bridges this gap by offering institutional-grade safety with DeFi-native innovation.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#strategic-eth-reserve-movement) Strategic ETH Reserve Movement
The growing momentum behind Strategic Bitcoin Reserves at both corporate and national levels signals a fundamental shift in how major institutions view cryptocurrency as a treasury asset. Companies like MicroStrategy have proven the benefits of ETH/BTC treasury strategies, while countries like El Salvador have demonstrated sovereign-level adoption.
Proposed Strategic ETH Reserve initiatives in the United States represent the next evolution of this trend. As governments consider holding ETH as strategic assets, the importance of maximizing yield while maintaining safety becomes paramount. Ethenix provides an ideal solution for both institutional and sovereign stakeholders who need:
- Capital preservation guarantees for fiduciary responsibility
- Enhanced yield potential beyond traditional staking
- Transparent, auditable operations for regulatory compliance
- Non-custodial security to eliminate counterparty risk
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#ethenix-protocol-mission) Ethenix Protocol Mission
Our primary objective is to create the decentralized equivalent of Premium Bonds while incorporating the institutional-grade features that ETF and Strategic Reserve adoption demands.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration\#core-design-philosophy) Core Design Philosophy:
**Institutional-Retail Bridge** \- Ethenix serves both retail DeFi users seeking excitement and institutional investors requiring sophisticated risk management. Our multi-tier prize structure satisfies retail users' desire for potentially transformative rewards while providing institutions with predictable risk parameters and transparent operations.
**Enhanced Treasury Management** \- For organizations holding Strategic ETH Reserves, Ethenix offers superior risk-adjusted returns compared to basic staking. Rather than accepting modest 4-5% yields, treasury managers can participate in a system that maintains capital safety while accessing upside potential that could significantly impact organizational balance sheets.
**Regulatory-Friendly Innovation** \- Unlike complex DeFi protocols that struggle with regulatory clarity, Ethenix operates on principles familiar to traditional finance (similar to Premium Bonds) while leveraging blockchain transparency. This makes it suitable for ETF integration, institutional adoption, and potential sovereign usage.
**Network Security at Scale** \- By making stETH deposits more attractive across all user segments - from retail to institutional - Ethenix strengthens Ethereum's validator network at unprecedented scale. Strategic Reserve holders, ETF managers, and individual users all contribute to network security while pursuing enhanced returns.
**Global Financial Infrastructure** \- As cryptocurrency moves toward mainstream adoption through ETF approval and Strategic Reserve consideration, protocols like Ethenix represent the infrastructure layer that will support billions in managed assets. We're building the foundation for how institutions will manage crypto treasury operations in the coming decade.
**Democratized Access Within Professional Framework** \- While maintaining the democratization principles of DeFi, Ethenix provides the operational sophistication that institutional users require. This dual approach ensures sustainable growth from both retail adoption and institutional integration.
The ultimate vision is establishing Ethenix as the premier protocol for both Strategic ETH Reserve management and retail DeFi participation - potentially managing tens of billions in total value locked while distributing hundreds of millions in prizes across a global, decentralized community that includes individual users, corporations, ETF managers, and sovereign wealth funds.
This represents the evolution of DeFi from experimental protocols to institutional-grade financial infrastructure that can support the next trillion dollars of crypto adoption.
[PreviousOverview](https://docs.ethenix.fi/) [NextWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth)
Last updated 6 days ago
## https://docs.ethenix.fi/security/possible-risks
Before you start using the protocol, you should clearly understand all of the risks associated with the protocol. Ethenix makes no guarantees, you use it at your own risk.
To minimize possible risks, Ethenix code was audited by an independent third-party company. You can read about the results of the audit in the corresponding [article](https://docs.ethenix.fi/security/audits). Besides, the protocol uses open-source code, and everybody can get more information about its technical aspects. Moreover - there is a bug bounty program with significant rewards. As was mentioned before - Ethenix Protocol is a decentralized service that uses a DAO model to manage it. No individual or company is a beneficiary of the protocol's activity, and no one controls it.
In the current protocol mechanics, stETH deposited to the common pool will never leave the Ethenix protocol to be invested in other platforms, which means that it will not be compromised due to the security of other protocols.
**Smart contract risk** In every Ethereum protocol, there is always a Smart contract risk, i.e., the risk of using protocols (lines of code) that can be hacked and exploited.
**Counterparty risks**: Ethenix relies on a couple of services - Lido as an underlying token asset provider and Chainlink as a randomness provider. Ethenix has no influence on these services and cannot predict/mitigate the risks associated with the use of these services.
**User risk** Ethenix has no influence on the results of the user's mistake. A user can lose their deposit due to erroneous transfers of PST tokens to third parties. Since PST tokens reflect the user's participation in the pool, they are required to withdraw the deposited funds. Also, the user may lose access to his wallet, which will also lead to the loss of funds.
[PreviousBug bounties](https://docs.ethenix.fi/security/bug-bounties) [NextDeployed contracts](https://docs.ethenix.fi/resources/deployed-contracts)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/users-odds
**So, how are the odds calculated, and how is the winner chosen?** We need to understand two basic parameters - TWAB & PICKS - to answer these questions.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#twab-time-weighted-average-balance) **TWAB, Time-Weighted Average Balance**
The first thing that comes to mind when determining the odds of winning is the deposit size, isn't it? Yes and no.
Since the protocol accumulates yield over time, a fundamental metric is the time the user's stETH has been in the pool and how much yield it has generated for the protocol. Otherwise, a crypto whale could cheat by entering the protocol at the last minute with a big deposit, receive huge odds, and "steal" yields from small users.
Therefore, the first indicator that affects the odds is **TWAB (time-weighted average balance)**. This indicator displays the user's contribution to the pool's total yield generated between draws.
Let's check the following exaggerated example. Assume that there are only **2 users** in the protocol and the **Total Time** between draws is **7 days (100% of the time)**.
**User 1** kept his **100 stETH** for the full 7 days ( **100% of the time**). His TWAB is (100 stETH x 1.00) = **100 User 2** kept his **1,000 stETH** for only 1 day ( **14.285714285714% of the time**). His TWAB is (1,000 stETH x **0.14285714285714**) = **142,8571428571**
**Total TWAB** is 100 + 142,8571428571 = **242,8571428571 User 1 TWAB is 100** (or 41,1764705882% from the Total TWAB) **User 2 TWAB is 142,8571428571** (or 58,8235294118% from the Total TWAB)
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#picks) **PICKS**
You can think of picks as the number of tickets you hold. Each user has a certain number of Picks, and every pick in the draw takes part in the process of selecting the winner.
But first, we have to determine the **Total Picks**. Total Picks is defined as Total TWAB / Minimum Deposit. In our case, it is **242,8571428571** / **0.1 stETH** = **2,428 picks** (we discard any decimal).
So, how many Picks will each user get in the example above? That's where the TWAB comes into play.
User 1 will get **2,428 x 41,1764705882% = 999 picks** (we discard any decimal)
User 2 will get **2,428 x 58,8235294118% = 1,428 picks** (we discard any decimal)
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds\#participants-list-for-draw) Participants list for draw
Now, when we have a number of picks for each user, the Ethenix creates the list for the draw. It looks as follows:
> 1\. \[address of User 1\]
> 2\. \[address of User 1\]
> 3\. \[address of User 1\]
> 4\. \[address of User 1\] .
> ... Address of User 1 repeats 999 times total....
> 1000\. \[address of User 2\]
> 1001\. \[address of User 2\]
> 1002\. \[address of User 2\]
> 1003\. \[address of User 2\] .... Address of User 1 repeats 1,428 times total....
>
> Total 2,428 lines (picks)
As the next step, the list of all participating tickets (PICKS LIST) is hashed to generate a unique ID for the request. A request is then sent to Chainlink VRF to generate a random numbers. Chainlink VRF generates random numbers, which can range up to 2^256 possible values. To ensure the result falls within the range required for the number of participating tickets, a modulo function is applied to the results.
Once there are random numbers within the required range, it is matched with the content of the relevant PICKS LIST to determine a winner. Winners are determined based on the randomly generated numbers by Chainlink VFR that fall within the valid range, providing a fair and equal odds for each ticket.
Detailed information for each draw is available on a separate page, allowing users to ensure that the draw is fair, transparent, and fully traceable.
_The bottom line is that both parameters affect your odds: the size of the user deposit and the time deposit was in the protocol. Ethenix protocol dynamically calculates odds for all users._
[PreviousHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works) [NextFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/glossary
**Protocol** \- a smart contract where users send their deposits in stETH;
**Yield** \- it is % generated from stETH staking;
**stETH** \- a token of liquid staking provider Lido that represents an amount of staked ETH;
**$PST (Pool Share Token)** is a token minted by Ethenix protocol and sent to the user's wallet after his deposit. It displays the user's share in protocol and is required to withdraw his deposit;
**Draw** \- selection process of user/users who will receive the generated yield in this period. Takes place in a specific period (one per week currently);
**TWAB (time-weighted average balance)** \- a percentage of yield generated by the specific user compared to the yield generated by the whole protocol (between draws);
**Pick** \- represents an entry containing the user's address and is used to choose a winner. Each person has a number of picks that depends on the user's TWAB. More picks - more odds;
**Total picks** \- number equals total deposits / minimum deposit amount (0.1 ETH at the moment).
[PreviousFAQ](https://docs.ethenix.fi/ethenix-protocol-guide/faq) [NextAudits](https://docs.ethenix.fi/security/audits)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect
Like many things in modern technology, even the best solution may not be the right one for everyone.
Therefore, it is recommended to properly position yourself as a stETH or ETH holder and understand which option is more suitable for you before using the Ethenix protocol.
[PreviousWhy stETH?](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth) [NextTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team)
Last updated 6 days ago
## https://docs.ethenix.fi/security/audits
[PreviousGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary) [NextBug bounties](https://docs.ethenix.fi/security/bug-bounties)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/team
Created by passionate crypto builders, **Ethenix** is a fully decentralized, open-source protocol operating on the Ethereum blockchain. As a truly decentralized system, no single entity or organization controls the protocol's operation.
The entire DeFi community is welcomed to contribute to Ethenix's evolution and ongoing development. Community participation drives protocol improvements, feature additions, and ecosystem growth.
#### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/team\#get-involved) Get Involved:
- Join our community through the [links](https://docs.ethenix.fi/resources/links) in the "Community" section
- Contribute to open-source development on GitHub
- Participate in protocol discussions and proposals
Contact:
For partnerships, technical inquiries, or specific questions, reach out to: **contact@ethenix.fi**
**Ethenix** thrives through community collaboration and decentralized governance, embodying the true spirit of DeFi innovation.
[PreviousWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect) [NextHow it works](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works)
Last updated 6 days ago
## https://docs.ethenix.fi/#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience
## [Direct link to heading](https://docs.ethenix.fi/\#what-is-ethenix-protocol) What is Ethenix Protocol?
**Ethenix is a decentralized, non-custodial no-loss lottery protocol that transforms traditional liquid staking into an exciting, gamified experience while preserving capital safety.**
Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.
### [Direct link to heading](https://docs.ethenix.fi/\#is-regular-steth-staking-compelling-enough) Is regular stETH staking compelling enough?
Liquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:
The core challenges we observed:
1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.
2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.
3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.
4. Monotonous user experience - The "set and forget" nature of staking doesn't foster active community engagement or protocol loyalty.
While Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.
### [Direct link to heading](https://docs.ethenix.fi/\#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience) Ethenix Protocol transforms routine staking into an engaging DeFi experience
The protocol mechanics operate through a sophisticated yet user-friendly system:
#### [Direct link to heading](https://docs.ethenix.fi/\#deposit-phase) Deposit Phase:
- Users deposit liquid staked ETH (stETH) into community-managed prize pools
- Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility
- Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration
#### [Direct link to heading](https://docs.ethenix.fi/\#yield-generation) Yield Generation:
- The combined pool automatically generates staking rewards through Lido's validator network
- Yield accumulates continuously as Lido rebases occur, typically daily
- All generated interest is captured by the protocol's automated yield harvesting system
#### [Direct link to heading](https://docs.ethenix.fi/\#prize-distribution) Prize Distribution:
- Weekly draw periods conclude with Chainlink VRF-powered random winner selection
- Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users
- Multiple prize tiers can be configured to reward different participant segments
#### [Direct link to heading](https://docs.ethenix.fi/\#capital-safety) Capital Safety:
- Users maintain complete access to their principal deposits at all times
- No lock-up periods or withdrawal penalties during normal operation
- Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods
#### [Direct link to heading](https://docs.ethenix.fi/\#unique-value-propositions) Unique Value Propositions:
- No-loss guarantee: Principal deposits remain fully withdrawable
- Amplified rewards: Winners receive significantly higher yields than traditional staking
- Provable fairness: Chainlink VRF ensures transparent, verifiable randomness
- Community-driven: Decentralized operation without governance token dependencies
- Capital efficient: Maintains full exposure to ETH price appreciation while participating
This approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.
[NextInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration)
Last updated 6 days ago
## https://docs.ethenix.fi/security/bug-bounties
[PreviousAudits](https://docs.ethenix.fi/security/audits) [NextPossible risks](https://docs.ethenix.fi/security/possible-risks)
Last updated 6 days ago
## https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth
Ethenix is built specifically around stETH (Lido Staked ETH) as the core asset for our no-loss lottery protocol.
### [Direct link to heading](https://docs.ethenix.fi/what-is-ethenix-protocol/why-steth\#why-ethenix-uses-steth) Why Ethenix Uses stETH
- Market leadership - Over $35 billion TVL, the dominant liquid staking token
- Transparent rebasing - Daily balance increases make yield generation visible to users
- Perfect mechanics - Rebase model aligns ideally with prize pool accumulation
- Proven reliability - Battle-tested infrastructure with widespread DeFi integration
stETH's daily rebase mechanism provides the transparent yield capture that makes Ethenix's prize distribution system both fair and engaging for users.
[PreviousInspiration](https://docs.ethenix.fi/what-is-ethenix-protocol/inspiration) [NextWhat to expect?](https://docs.ethenix.fi/what-is-ethenix-protocol/what-to-expect)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-1-deposit-steth-into-ethenix) Step 1: Deposit stETH into Ethenix
Users deposit stETH tokens directly into the Ethenix smart contract. Upon deposit, the protocol automatically mints PST (Pool Share Token) in a 1:1 ratio, representing your share in the prize pool and eligibility for draws.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#deposit-details) Deposit Details:
- Minimum deposit: 0.1 stETH
- Flexible amounts accepted (e.g., 0.11234 stETH is valid)
- PST your participation and enable withdrawals
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-2-automatic-yield-accumulation) Step 2: Automatic Yield Accumulation
Your deposited stETH continues earning Lido staking rewards at the current APR (~4-5%). The protocol's stETH balance grows daily through Lido's rebase mechanism, automatically accumulating the yield that will become prize money.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-3-weekly-prize-distribution) Step 3: Weekly Prize Distribution
Every 604,800 seconds (~1 week), Ethenix conducts a draw using Chainlink VRF for provably fair randomness. Winners are selected based on their ticket holdings and time-weighted participation. Your winning odds update dynamically based on your deposit size and duration.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#key-features) Key Features:
- No manual re-entry required - you're automatically included in every draw
- Transparent, verifiable randomness via Chainlink VRF
- Fair distribution based on participation time and amount
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-4-automatic-reward-distribution) Step 4: Automatic Reward Distribution
Winners automatically receive their prizes as additional PST (equivalent to stETH value). This increases your balance and improves your odds for future draws - no claiming required, everything happens automatically on-chain.
### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#step-5-withdraw-anytime) Step 5: Withdraw Anytime
Exit the protocol whenever you want. Ethenix burns your PST and returns stETH at a 1:1 ratio, ensuring you always maintain access to your principal deposit.
#### [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/how-it-works\#complete-control) Complete Control:
_Ethenix operates as a fully non-custodial protocol - only you control your funds, always._
[PreviousTeam](https://docs.ethenix.fi/what-is-ethenix-protocol/team) [NextUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds)
Last updated 6 days ago
## https://docs.ethenix.fi/ethenix-protocol-guide/faq
**Where are the rewards taken from?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#where-are-the-rewards-taken-from)
All users contribute their stETH tokens to a smart contract. stETH in Ethenix protocol earns staking rewards, and the protocol balance is updated every 24 hours as regular stETH. The user's principal (initial deposit) always remains untouched and is used solely as a yield-making tool. Only the yield generated by the protocol takes part in the draw.
**Is this a lottery?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#is-this-a-lottery)
No. Unlike lotteries and other gambling activities, you do not spend your money to participate. The protocol is a DeFi derivative. Your tokens remain yours. As a stETH holder, you can choose to keep your tokens in your wallet and earn lower, but guaranteed rewards, or take the risk and potentially increase your APR significantly
**Can I withdraw my fund anytime?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-withdraw-my-fund-anytime)
Yes, you can withdraw your deposit anytime.
Furthermore, you can withdraw it in full (and you will still participate in the next weekly draw, based on your accumulated odds) or withdraw it partially (in this case, your odds will be recalculated immediately).
The **odd costs** will apply if you withdraw before the daily stETH balance rebase.
**What is the odds cost?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-odds-cost)
stETH balance is updated once a day (every 24 hours at 12:00 UTC around). Due to that technical feature, some cheating opportunities exist. For example, the user can earn odds in Ethenix Protocol and withdraw deposit before the stETH balance is rebased. So the generated yield will go to the user directly, not to the Ethenix pool. To prevent this, Ethenix calculates the amount of earned yield by the user's deposit **between the last stETH balance rebase** and **the actual deposit withdrawal time** (as you can understand, that period can't be more than 24 hours). And that yield is deducted from the user's initial deposit when the withdrawal takes place. See how it works in practice.
**\\* 2023-01-01 at 16:00 UTC; User enters the protocol with 10 stETH;**
\\* 2023-01-02 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-03 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-04 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
&#xNAN; **\\* 2023-01-04 at 17:00 UTC; User decides to withdraw the deposit and not to wait for the weekly draw.**
\\* 2023-01-05 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-06 at 12:00 UTC; The stETH rebase (Ethenix pool has grown);
\\* 2023-01-07 at 12:00 UTC; Weekly draw.
In the above example, User decides to quit Ethenix before the weekly draw. But despite that, User took part in the Ethenix pool for 3 days. All these 3 days, his deposit was generated yield, so the User will receive corresponding odds and participate in the weekly draw. Then he decided to withdraw the deposit. Ethenix will calculate the yield generated by his deposit **between 2023-01-04 at 12:00 (last stETH rebase)** and **2023-01-04 at 17:00 (actual withdrawal time, 5 hours from last rebase)** \- 0,0000256849%. So the User can withdraw 10 ETH - 0,0000256849% (yield generated for 5 hours) = **9,9997431507 stETH**.
**Please note that this 0,0000256849% is not a** **"fee". This is a yield that goes for distribution when a draw occurs. And User receives odds for those 5 hours as well. So final odds for the User in the above example will be calculated as 3 days + 5 hours.**
After each draw, there is a period when all users can withdraw their deposits both partially or in full **without odds cost** at all. That can be done within 3 hours after Ethenix Protocol's weekly draw, this information is indicated on the website.
**Should I claim my rewards manually in case of a win?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#should-i-claim-my-rewards-manually-in-case-of-a-win)
No need to do it manually. In case of winning, users receive relevant rewards in the form of PST tokens (PST, pool share tokens are your share in protocol and reflect your stETH balance). You will receive additional PST to your wallet automatically (your odds will also be re-calculated). You can claim your PST for stETH at a 1:1 ratio at any time without restrictions.
**How to withdraw my deposit from the protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-to-withdraw-my-deposit-from-the-protocol)
Users can withdraw at any time. Ethenix protocol will burn existing users' PST tokens for stETH tokens at a 1:1 ratio at any time without restrictions. PST is the only key to getting your deposit withdrawn back.
**Can I transfer my PST token to someone else?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-transfer-my-pst-token-to-someone-else)
Yes, you can send your PST token to another wallet, and the new PST token holder can withdraw the equivalent amount of stETH deposit from the protocol.
The new holder of the PST tokens will start getting odds - picks for the current draw from the moment they receive the tokens.
For example, if User 1 has 10 stETH for half of the time of the draw and then transfers the PST to User 2, and User 2 stays in the pool for the other half of the time, the picks for this draw will be divided equally between User 1 and User 2.
So transferring the 10 stETH does not mean that 100% of the picks for the current draw will be transferred as well.
**Do you have limits on the size of the deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#do-you-have-limits-on-the-size-of-the-deposit)
In the current version of the protocol, the minimum deposit size is 0.1 stETH, and there is no maximum limit on the deposit size.
**Can I lose my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-lose-my-deposit)
No one has access to your funds locked in the smart contract. It is entirely operated by the code audited by an independent third party.
Your principal (initial deposit) is not used to pay out draw rewards; only the yield generated from your deposit is used for rewards. And if you do not win, you only lose your potential yield. Your deposit remains untouched.
But it's important to understand that there is still the risk related to the technology itself that may cause the loss of your funds (losing your wallet, accidental losing of PST tokens, exploits/hackers attacks, etc.). Also, the ETH staking is experimental and involves some risks related to the Liquid staking provider Lido (de-pegging, etc.). Please refer to the [Possible Risks](https://docs.ethenix.fi/security/possible-risks) article for more information.
**Does anyone except me has an access to my deposit?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#does-anyone-except-me-has-an-access-to-my-deposit)
No, the funds deposited by the users are kept in a secure contract that is separate from others. The only way to access the deposit is through the user's PST tokens, which represent their portion of the total funds in the pool.
The protocol administrator is only allowed to withdraw ERC-20 tokens from the prizes distribution contract. This feature ensures that any yield generated by the pool between the two draws is kept safe in case of emergencies - such as a failure in the automated weekly distribution process due to the use of third-party services like Chainlink VFR etc.
**Can I win more than one reward per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#can-i-win-more-than-one-reward-per-draw)
Yes, if there is more than one reward per draw, you can win more than one.
**How many stETH rewards per draw? How often draws are? How many winners per draw?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#how-many-steth-rewards-per-draw-how-often-draws-are-how-many-winners-per-draw)
Currently, draws take place every week (604800 seconds), and there are three winners per draw. The first reward is 50% of the yield generated in the current draw, the second place is 30%, and the third place is 20%
The total rewards of each draw depend on the yield generated by the protocol between draws.
**What is the potential business model for Asymetrix Protocol?** [Direct link to heading](https://docs.ethenix.fi/ethenix-protocol-guide/faq#what-is-the-potential-business-model-for-asymetrix-protocol)
The Ethenix Protocol DAO charging 15% of fees from the rewards generated in the protocol and implement protocol health in feature.
[PreviousUser's odds](https://docs.ethenix.fi/ethenix-protocol-guide/users-odds) [NextGlossary](https://docs.ethenix.fi/ethenix-protocol-guide/glossary)
Last updated 6 days ago
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"overview": "Here's how it works in practice: imagine 100 users each deposit 1 stETH into the Ethenix smart contract, creating a pool of 100 stETH. Over time, these deposits generate 5 stETH in Lido staking rewards. Instead of distributing small, predictable yields to everyone, Ethenix collects these 5 stETH rewards and distributes them through a provably fair, randomized system to selected winners. All 100 users retain their original 1 stETH deposits, but while most participants receive 0% yield in that period, the winners receive dramatically amplified rewards - potentially 500% or more. It's thrilling.\n\n### [](https://docs.ethenix.fi/#is-regular-steth-staking-compelling-enough)\n\nIs regular stETH staking compelling enough?\n\nLiquid staking through Lido has solved many technical barriers, but it hasn't addressed the fundamental excitement problem for everyday DeFi users. Through extensive research and community feedback, we identified that traditional staking still suffers from key limitations that prevent mainstream adoption:\n\nThe core challenges we observed:\n\n1. Predictable, modest returns - A consistent 4-5% APY doesn't create the excitement that draws people to DeFi innovation.\n2. Psychological satisfaction gap - Small, regular rewards lack the psychological impact that motivates continued participation and engagement.\n3. Limited upside potential - Users seeking meaningful returns must deploy significant capital or accept minimal absolute gains.\n4. Monotonous user experience - The \"set and forget\" nature of staking doesn't foster active community engagement or protocol loyalty.\n\nWhile Lido and similar protocols solved the technical complexity, they didn't solve the enthusiasm problem. Ethenix addresses this fundamental gap by maintaining all the safety benefits of liquid staking while introducing the excitement factor that DeFi users actually want.\n\n### [](https://docs.ethenix.fi/#ethenix-protocol-transforms-routine-staking-into-an-engaging-defi-experience)\n\nEthenix Protocol transforms routine staking into an engaging DeFi experience\n\nThe protocol mechanics operate through a sophisticated yet user-friendly system:\n\n#### [](https://docs.ethenix.fi/#deposit-phase)\n\nDeposit Phase:\n\n* Users deposit liquid staked ETH (stETH) into community-managed prize pools\n* Each deposit mints corresponding Ticket tokens that represent both ownership and prize eligibility\n* Time-Weighted Average Balance (TWAB) system ensures fair participation based on deposit duration\n\n#### [](https://docs.ethenix.fi/#yield-generation)\n\nYield Generation:\n\n* The combined pool automatically generates staking rewards through Lido's validator network\n* Yield accumulates continuously as Lido rebases occur, typically daily\n* All generated interest is captured by the protocol's automated yield harvesting system\n\n#### [](https://docs.ethenix.fi/#prize-distribution)\n\nPrize Distribution:\n\n* Weekly draw periods conclude with Chainlink VRF-powered random winner selection\n* Accumulated yield is distributed asymmetrically to winners rather than proportionally to all users\n* Multiple prize tiers can be configured to reward different participant segments\n\n#### [](https://docs.ethenix.fi/#capital-safety)\n\nCapital Safety:\n\n* Users maintain complete access to their principal deposits at all times\n* No lock-up periods or withdrawal penalties during normal operation\n* Smart exit fee mechanism prevents gaming while ensuring fairness during high-volatility periods\n\n#### [](https://docs.ethenix.fi/#unique-value-propositions)\n\nUnique Value Propositions:\n\n* No-loss guarantee: Principal deposits remain fully withdrawable\n* Amplified rewards: Winners receive significantly higher yields than traditional staking\n* Provable fairness: Chainlink VRF ensures transparent, verifiable randomness\n* Community-driven: Decentralized operation without governance token dependencies\n* Capital efficient: Maintains full exposure to ETH price appreciation while participating\n\nThis approach creates a sustainable, exciting alternative to traditional staking that preserves capital safety while delivering the engagement and reward potential that modern DeFi users demand.",
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