Upcoming Release
What's coming next — permissionless bonding, on-chain staking, and note conversion.
The next release transitions ETH Strategy from a permissioned system to a permissionless protocol. Three core mechanisms move on-chain and become available to anyone.
Permissionless Bonding
Currently: Bonding is permissioned — ESPN bonds on behalf of its depositors to execute the volatility trade.
Upcoming: Anyone can purchase a USD-denominated convertible note directly from the protocol, paying with ETH (priced via an ETH/USD oracle). The buyer receives CDT (fungible debt) + an NFT option (conversion rights). No intermediary, no whitelist.
Each note encodes:
Conversion entitlements — how much STRAT and esETH the holder can claim
Settlement entitlement — the USD notional value redeemable after expiry
Timelock — ~6.9 days before conversion becomes available
Expiry — ~4.2 years
Conversion entitlement pricing uses PCF (Premium Control Factor) and GCF (GAV Control Factor) — two governance-tunable parameters that scale entitlements based on the protocol's gross asset value and the current premium.
For the full mechanics, see Convertible Notes.
On-Chain STRAT Staking
Currently: STRAT staking rewards are distributed via merkle claims.
Upcoming: The StakedStrat contract brings staking fully on-chain.
Stake STRAT → receive sSTRAT-v2 (non-transferable receipt token)
Earn esETH rewards streamed linearly over 7-day periods
Unstake at any time — auto-claims pending rewards, no lock period
Migrate to a new address without losing accrued rewards
The 7-day streaming design prevents frontrunning: you can't deposit right before a reward distribution, collect, and leave. New rewards blend with any undistributed balance and stream linearly, so earlier stakers always retain their accrued yield.
For the full mechanics, see STRAT Staking.
Note Conversion
Currently: Conversion of notes is permissioned.
Upcoming: Note holders can permissionlessly exercise their conversion rights through two paths:
Convert to STRAT (before expiry) — burn CDT against your NFT to receive STRAT at the entitlement rate set when you bonded.
Convert to esETH (before expiry) — burn CDT against your NFT to receive esETH from the protocol's encumbered holdings.
After expiry, remaining CDT redeems for its USD notional value paid in esETH — pro-rata if the protocol is underwater.
Partial conversion is supported: exercise a portion of your note now, keep the rest for later. The NFT tracks remaining entitlements.
For the full mechanics, see Conversion of Notes.
What's Not in This Release
Treasury Lending — borrowing esETH against STRAT + CDT collateral at fixed rates — is on the roadmap for Q2 2026. It is not part of this release.
Security
Audits for the upcoming release are in progress and will be published alongside the code before permissionless launch. For current audit status, see Audits.
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