Seperation Of Funds

Among the various liquid staking solutions available, the predominant practice involves pooling all deposited funds together. This pooling results in a commingling of funds, regardless of their origins. This poses a significant issue, particularly for institutions, as it carries inherent reputational risks.

Contrarily, Dexponent refrains from pooling funds. Instead, it distributes them across smart contracts, ensuring the segregation of funds. This method guarantees that funds remain separate and, upon unstaking, the depositor receives the same ETH they initially deposited. Notably, this process ensures that the user funds remain untouched by any bad actors, preventing the influx of their funds into user's holdings. This maintains a clean record for user ETH on the blockchain.

Moreover, this segregation practice offers several additional benefits. Firstly, it enhances transparency and traceability, allowing for a clear audit trail of the funds' movement. Secondly, it minimizes risks associated with potential fund intermingling, safeguarding against unforeseen liabilities or legal entanglements. Lastly, by preventing the mixing of funds, Dexponent's approach heightens security, protecting against potential breaches or misuse of assets.