stkETH Exchange Rate Model¶
pSTAKE issues liquid staked stkETH against user’s ETH deposits based on an exchange-rate, inspired by the Compound’s cToken model.
The stkETH/ETH exchange rate is determined as follows:
Exchange rate formula
Exchange rate = Number of stkETH in supply / (Total ETH staked with pSTAKE + Total ETH Rewards generated by pSTAKE)