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staking

Prime Staked ETH

Rejected
Max sleeve
Reviewed
2026-08-16 · v1
Next review
2026-11-15
Chains
Ethereum · sovereign

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Prime Staked ETH issues primeETH, a non-rebasing liquid-restaking receipt backed by a configurable basket of supported Ethereum LSTs deposited into EigenLayer. The exchange rate reflects underlying rewards, while holders inherit each LST, node-operator, EigenLayer, oracle and wrapper risk. Official documentation still states protocol withdrawals were unavailable at launch and points holders to Uniswap exit liquidity. DefiLlama measured $37,337 on 2026-08-16, so the version-1 below-materiality dossier rejects before this lifecycle and restaking stack could support advised use.

The research file

Mechanism and class applicability

Users mint primeETH with supported LSTs; primeETH is reward-bearing through an increasing exchange rate rather than rebasing. A deposit pool reads its configuration for the supported-asset list, and the adapter sums total deposits for each asset. This is a basket restaking wrapper. It is not automatically substitutable for direct stETH or another approved staking sleeve because backing composition and EigenLayer exposure can change.

Control, loss and assurance

PrimeStaked is based on Kelp code with additional LSTs and associated oracles. Official risk disclosures identify smart-contract, EigenLayer, collateral, issuer freeze and validator slashing risks and state that a loss in an underlying LST can pass through to primeETH. Prior Kelp audits are relevant to inherited code, but added assets, configuration, oracles and operator choices require their own current evidence.

Lifecycle, accounting and exit

DefiLlama reported $37,337 on Ethereum on 2026-08-16 and marks the balance double-counted because the underlying LSTs are already counted elsewhere. The current adapter proves assets remain in the deposit pool but not that primary withdrawals are enabled. The official introduction states withdrawals were unavailable at launch and directs exits to Uniswap, so a holder may depend on secondary depth and discount until a current primary redemption path is independently verified.

Comparison and measurable reopening test

Unlike direct ownership of a named LST, primeETH adds basket, configuration, oracle and EigenLayer layers; unlike a mature LRT with verified withdrawals, its public lifecycle evidence is stale. Reopen after TVL exceeds $100M for 30 days, then verify current backing weights, operators, AVSs, slashing, roles, audits and incidents and complete a proposed-size primary redemption and secondary sale under queue and depeg stress.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
EthereumApproved sovereign No sequencer, no upgrade key, no operator who can be compelled — rule changes require social consensus.
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