How Does Dinero Work?
Dinero (Pirex ETH) is a boutique ETH LST with a novel two-token design: pxETH is the plain 1:1 wrapper, apxETH is the yield-bearing version that also absorbs all slashing losses. A liquid ETH buffer services redemptions without waiting for validator exits, and the Redacted Relayer RPC captures MEV for yield. At ~$90M TVL it sits in the long tail of ETH LSTs, with less liquidity and DeFi integration than Lido/Rocket Pool/Frax. Governance and ecosystem overlap with the Redacted Cartel (ex-BTRFLY) lineage, which some users view favourably and others do not.
TVL
$90M
Sector
Liquid Staking
Risk Grade
C
Value Grade
D
Core Mechanisms
3.4.2 Reward-bearing LST
NovelpxETH + apxETH two-token liquid staking design (Pirex)
Users deposit ETH and mint pxETH 1:1. pxETH can be held passively (no yield) or staked into apxETH which absorbs all yield AND all loss risk. Novel separation of yield from principal.
2.3.3 Algorithmic treasury
ETH buffer pool for immediate redemptions
A portion of deposited ETH is kept as a liquid buffer to service redemptions without waiting for validator exit. Standard pattern but has edge cases under stress.
3.1.4 MEV redistribution
NovelRedacted Relayer RPC for MEV capture
Dinero operates an RPC / relayer that captures MEV and redistributes to apxETH holders. Novel integration of a userland-facing MEV product with a LST.
6.4.1 Chainlink / external oracle
pxETH/apxETH exchange rate oracle
Standard exchange-rate oracle for DeFi integration.
5.1.1 Token-weighted voting
DINERO governance (Redacted Cartel lineage)
DINERO token for governance. Part of the post-BTRFLY / Redacted ecosystem.
How the Pieces Interact
All validator losses are routed to apxETH holders, while pxETH holders are insulated. Under large slashing events, apxETH could drop sharply even as pxETH remains whole — creating asymmetric risk that is easy for users to misunderstand.
If redemptions exceed the buffer during a stress event, remaining holders must wait for validator exits (days-weeks). This creates a run-on-the-bank incentive: redeem first, wait less.
MEV capture depends on Dinero's validator share plus user adoption of the Redacted RPC. Changes in block-builder economics (e.g., PBS, MEV-Boost evolution) could degrade expected yields.
At ~$90M TVL, pxETH has limited DEX liquidity. Forced exits under stress would face large price impact before the buffer even engages.
What Could Go Wrong
- pxETH buffer model separates staked ETH from redeemable ETH; under extreme redemption pressure the buffer can be depleted, forcing users into slower validator exits
- Dual-token design (pxETH + apxETH) adds complexity; yield-seeking apxETH holders absorb more of validator risk than pxETH holders
- Redacted Cartel connection (formerly BTRFLY) ties Dinero's governance and incentive mix to a contentious prior DAO lineage
Buffer Depletion Redemption Run
ModerateTrigger: A stress event triggers pxETH redemptions exceeding the ETH buffer, forcing remaining holders into multi-day validator exit queues
- 1.Market stress or FUD about Dinero triggers redemption requests — Buffer drawn down rapidly
- 2.Buffer depleted; subsequent redemptions queued against validator exits — Remaining pxETH holders see 5-14 day wait times
- 3.Holders try to exit via DEX instead; pxETH depegs due to thin liquidity — Discount widens, amplifying fear and outflows
- 4.DeFi integrations using pxETH as collateral face liquidation pressure — Borrowers liquidated into the depeg; additional cascade
Risk Profile at a Glance
Overall: C (44/100)
Lower score = safer