FAQs

Who can access Portara?

Only clients that have completed KYC/KYB can access Portara and stake to the solution or hold the sETH-h/ rETH-h tokens.

Why is this new token called Portara?

Portara of Naxos is a huge marble gate. It was built in the 6th Century as the entranceway to a temple dedicated to Apollo. Likewise, this solution is the gateway to liquid-staked ETH.

Will clients have to be onboarded with B2C2 to trade Portara? If yes, then is it the same onboarding process?

Yes, all clients will need to be onboarded with B2C2 abiding by the same onboarding process to trade this new token. New clients must meet B2C2’s KYC, onboarding, risk, documentation, and financial requirements.

Note: Onboarding with B2C2 solely unlocks the trading of the Portara tokens, but staking is enabled once Blockdaemon has completed its KYB process.

Do clients need to be institutions to trade this token via B2C2?

Only institutions can become clients of B2C2. B2C2 can support clients based anywhere in the world, subject to any local restrictions, and our global client base is diverse, including hedge funds, fund managers, family offices, banks, brokers, OTC desks, and retail brokers.

Do I need to be a client of Blockdaemon to stake this token?

Yes.

What’s the projected annualized reward rate? It is paid daily/weekly/monthly?

ETH's historical annualized staking reward rate has been ~5% (net of Portara’s 8% commission fee on rewards generated). Historically, Portara’s reward rates have been in-line with this rate. Rewards are distributed to customers’ wallet addresses daily.
rETH-h is minted daily based on the rewards generated by the staked ETH represented by the sETH-h token. After fees are charged, the net rewards (i.e. rETH-h tokens) are sent to the wallet holding the sETH-h. If a client trades away all their sETH-h tokens, then no further rETH-h tokens would be minted to this client’s wallet address.

Is there a minimum or maximum that can be staked and traded?

No minimum or maximum (can be as little as 0.01 ETH).

How is the staked ETH custodied while staked? Are they segregated? Are there any risks around being hacked or mis-used?

Portara is a fully non-custodial solution. This means that the client is in full custody of their staked assets at all times and holds custody of the s/rETH-h tokens. Through their custodian, they control the deposit, transfer, and withdrawal of the staked assets.

Can I trade sETH-h or rETH-h into native ETH at 1:1?

sETH-h and rETH-h tokens can only be redeemed for native ETH via:

Trading the tokens on the secondary market (e.g., on B2C2).
Unbonding; this 2nd process will involve burning the tokens back to the protocol and waiting several days for native ETH unbonding to occur before the ETH can be redeemed 1:1.

Any geographical limitations or considerations?

No limitations.

Am I able to sell the staked ETH token?

Yes, both sETH-h and rETH-h are tradeable on the secondary market via B2C2.

Does this involve any credit/lending?

No credit/lending process is involved in the staked ETH trading or redemption process.

What are the top two risks involved?

Slashing Risk: Causes of a slashing event may include improper action by a node operator or broad network-wide events. Regardless, Portara covers any customer loss of funds due to slashing, with third-party insurance up to $5mm.
Smart Contract Risk: Just as with any smart contract-based protocol, there is potential for code vulnerabilities. Portara’s mitigant against this risk is that the Portara codebase has been audited on several occasions by multiple 3rd party audit firms.

What happens if an sETH-h/rETH-h token holder transfers tokens to a wallet that is not allow-listed?

The transaction is rejected as the account's whitelist check will fail. The holder of the sETH-h / rETH-h will continue to hold their tokens and won’t be able to transfer tokens to the other wallet until that wallet address has been allow-listed.

What is the process for a user that has their KYB/AML status revoked?

The user’s wallet address is removed from the allow-list Smart Contract, which then prevents that user from moving their sETH-h / rETH-h assets until they have passed KYB/AML procedures again (in accordance with FATF guidelines). The tokens will remain in the user's wallet and continue accruing rewards, but the user won't be able to transfer or redeem them until re-allow-listed.

Can sETH-h and rETH-h be used in DeFi?

As of now, the tokens can not be used in DeFi given most DeFi protocols are fully permissionless and therefore do not comply with Portara’s compliance architecture.

In the future, Portara will plan for the tokens to be able to use in permissioned-only DeFi protocols.

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