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Merge pull request #758 from lidofinance/v3-docs-update
DeFi Wrapper guide
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run-on-lido/stvaults/building-guides/basic-stvault.md

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sidebar_position: 1
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---
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import Tabs from '@theme/Tabs';
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import TabItem from '@theme/TabItem';
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# Basic stVault with optional liquidity
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## Intro
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1. **Node Operator address** — a unique, immutable identifier of the Node Operator within stVaults, used in protocol logic such as calculating per-operator stETH minting terms and limits. It designates the Node Operator that provides validation services for the stVault and also manages ETH deposits from the stVault balance to validators, as well as handling validator exits when required.
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2. **Node Operator Manager address**. One of the two administrative roles in an stVault. From the Node Operator perspective, this role manages permissions and can update key vault parameters. Multiple addresses are supported.
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3. **Vault Owner address**. One of the two administrative roles in an stVault. From the Vault Owner (Staker) perspective, this role manages permissions and can update key vault parameters. Multiple addresses are supported.
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4. **Node Operator Fee**. The share of gross staking rewards that the Node Operator charges for providing validation services. Expressed in basis points [0 (0%) .. 10'000 (100%)].
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4. **Node Operator Fee**. The share of gross staking rewards that the Node Operator charges for providing validation services. Expressed in basis points [0 (0%) .. 10,000 (100%)].
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5. **Confirmation Lifetime**. The key parameter of the multi-role confirmation mechanism. It defines the maximum time interval between proposal and confirmation. This mechanism is used to update certain stVault parameters by requiring consensus between the two stVault representatives: the Vault Owner and the Node Operator Manager. Measured in seconds [86,400 sec (24 hours) .. 25,920,000 sec (30 days)]. For security reasons, it is strongly recommended to keep it as short as possible, ideally the minimum 86,400 sec.
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#### 1. Two-step process (recommended)
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- `TierID`: the ID of the tier to which the stVault will be connected.
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- `RequestedShareLimit`: the requested absolute stETH minting limit for the stVault, expressed in shares. This value cannot exceed the tier’s stETH limit.
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- `payableAmount`: the amount of ETH to supply in the same transaction; minimum is **1 ETH**.
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- `currentSettledGrowth` the amount of unaccounted growth accrued on the vault while it was disconnected. 0 for newly created vaults via create without connecting method. Settled growth is the part of the total growth that has already been charged by the node operator or is not subject to fee (exempted), such as unguaranteed or side deposits, and consolidations accrued while the vault was disconnected.
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- `currentSettledGrowth`: the amount of unaccounted growth accrued on the vault while it was disconnected; 0 for newly created vaults via the create-without-connecting method. Settled growth is the part of the total growth that has already been charged by the node operator or is not subject to fee (exempted), such as unguaranteed or side deposits, and consolidations accrued while the vault was disconnected.
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<details>
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2. Connect wallet on the "My Vaults" page.
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3. Open an stVault overview page by the URL ```https://<domain>/vaults/<StakingVault_address>```
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3. Open an stVault overview page at `https://<domain>/vaults/<StakingVaultAddress>`
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![Connect and accept tier](/img/stvaults/guide-basic-stvault/guide_1_scr_8.png)
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4. Review parameters and click "Approve and supply 1 ETH".
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3. Open the **Contract** tab → **Write as Proxy**.
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4. Click **Connect to Web3** and connect your wallet in the dialog window.
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5. Find the `connectAndAcceptTier` method in the list, fill out the fields, and click **Write**.
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- fill out the `payableAmount` field with '1' to supply `1 ETH` in the same transaction.
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- set the `_currentSettledGrowth` field to '0' for newly created vault like in this scenario (if the stVault is newly created but had side deposits before connecting, settled growth must be set accordingly before the connection).
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- fill out the `payableAmount` field with '1' to supply `1 ETH` in the same transaction.
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- set the `_currentSettledGrowth` field to '0' for a newly created vault like in this scenario (if the stVault is newly created but had side deposits before connecting, settled growth must be set accordingly before the connection).
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6. Sign the transaction in your wallet.
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7. Click **View your transaction** and wait for it to be executed.
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</details>
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![Review settings](/img/stvaults/guide-basic-stvault/guide_1_scr_3.png)
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4. On behalf of the another contracting party open 'Settings > Tiers'.
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4. On behalf of the other contracting party, open 'Settings > Tiers'.
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![Open proposal](/img/stvaults/guide-basic-stvault/guide_1_scr_4.png)
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yarn start vo w change-tier -v <vaultAddress> -r <requestedShareLimit> <tierId>
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```
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On behalf of the Node Operator ([details and examples](https://lidofinance.github.io/lido-staking-vault-cli/commands/vault-operations/#change-tier-by-no-ct-no))::
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On behalf of the Node Operator ([details and examples](https://lidofinance.github.io/lido-staking-vault-cli/commands/vault-operations/#change-tier-by-no-ct-no)):
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```bash
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yarn start vo w change-tier-by-no -v <vaultAddress> -r <requestedShareLimit> <tierId>
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3. Open the **Contract** tab → **Write as Proxy**.
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4. Click **Connect to Web3** and connect your wallet in the dialog window.
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5. Find the required method in the list, fill out the fields, and click **Write**:
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- `fund` to supply (fund) ETH into the stVault;
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- `withdraw` to withdraw ETH from the stVault balance. (accepts wei for amount)
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- `fund` to supply (fund) ETH into the stVault.
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- `withdraw` to withdraw ETH from the stVault balance (accepts wei for amount).
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6. Sign the transaction in your wallet.
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7. Click **View your transaction** and wait for it to be executed.
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</details>
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The key stVault metrics that the Vault Owner should monitor and control are:
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- **Utilization ratio** -- the share of the stETH minting capacity currently used by the Vault Owner. [Learn more](../parameters-and-metrics)
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- **Health Factor** -- a metric that reflects the economic state of the vault. It shows how the stETH liability is collateralized by the Total Value. A Health Factor of 100% corresponds to the Forced Rebalance Threshold, meaning that if the Health Factor falls below 100%, the stVault becomes subject to forced rebalancing. [Learn more](../parameters-and-metrics)
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- **Utilization ratio** — the share of the stETH minting capacity currently used by the Vault Owner. [Learn more](../parameters-and-metrics)
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- **Health Factor** — a metric that reflects the economic state of the vault. It shows how the stETH liability is collateralized by the Total Value. A Health Factor of 100% corresponds to the Forced Rebalance Threshold, meaning that if the Health Factor falls below 100%, the stVault becomes subject to forced rebalancing. [Learn more](../parameters-and-metrics)
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Read more:
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- [Health Monitoring Guide](../health-monitoring-guide.md)
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- [Health Emergency Guide](../health-emergency-guide.md)
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The Health Factor metric may decrease as a result of validator underperformance, penalties, or a slashing event.
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- Repay stETH to reduce stETH liability.
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- Rebalance ETH (optionally combined with a supply in a single transaction).
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**Rebalancing** involves transferring available ETH from the stVault balance to Lido Core, receiving stETH at a 1:1 ratio, and repaying it back to the stVault. This reduces stETH Liability and thereby increases the Health Factor.
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**Rebalancing** involves transferring available ETH from the stVault balance to Lido Core, receiving stETH at a 1:1 ratio, and repaying it back to the stVault. This reduces stETH liability and thereby increases the Health Factor.
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Rebalancing is performed in one transaction.
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## Useful links
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- [Health Monitoring Guide](../health-monitoring-guide.md)
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- [Health Emergency Guide](../health-emergency-guide.md)
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- [stVaults Roles](../roles-and-permissions)
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- [stVaults Metrics](../parameters-and-metrics)
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- [Health Monitoring Guide](../health-monitoring-guide.md)
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- [Health Emergency Guide](../health-emergency-guide.md)

run-on-lido/stvaults/building-guides/index.md

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| Staking Product to build | Its Value Proposition | Its Segments |
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| -------- | -------- | -------- |
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| [Basic stVault with optional liquidity](./basic-stvault.md) | A competitive alternative to native staking: users stake with the same Node Operator while gaining optional liquidity through stETH. | Institutional stakers, large individual stakers (32+ ETH), funds, treasuries, builders, integrators, liquidity providers. |
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| **(Coming soon)** Pooled staking product with white-labeled UI and yield-boosting strategy | A DeFi-wrapped stVault with pooling, liquidity, automated yield-boosting strategy, and white-labeled staking UI – all in one customizable no-code/low-code solution. | Retail stakers (< 32 ETH), APR-maximizers, institutional stakers seeking a simple staking UI. |
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| [Pooled staking product with white-labeled UI and yield-boosting strategy](./pooled-staking-product.md) | A DeFi-wrapped stVault with pooling, liquidity, automated yield-boosting strategy, and white-labeled staking UI – all in one customizable no-code/low-code solution. | Retail stakers (&lt;32 ETH), APR-maximizers, institutional stakers seeking a simple staking UI. |
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:::info
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Have your own custom product in mind? [Contact us](https://tally.so/r/mVrkZa)!

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