How Does Dinero Work?
Dinero (Pirex ETH) was a boutique ETH liquid staking protocol with a novel two-token design (pxETH + apxETH). In October 2025, the Dinero DAO voted 99%+ to dissolve via acquisition by Plume Network. Assets were migrated to plumeETH, and TVL collapsed from ~$90M to ~$4M. The protocol is effectively in wind-down mode. Remaining holders still hold pxETH that can be redeemed, but DEX liquidity is near-zero. The DINERO governance token has lost 90%+ of value. For new users, this is a stranded position, not an active investment.
TVL
$4M
Sector
Liquid Staking
Risk Grade
C
Value Grade
F
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. DAO voted 99%+ in October 2025 to dissolve via Plume acquisition.
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.
With TVL collapsed to ~$4M following the Plume acquisition and DAO dissolution, pxETH has essentially no DEX liquidity. Any forced exit under stress would face maximum price impact; the protocol cannot absorb even modest redemption pressure without depegging.
What Could Go Wrong
- Plume Network acquisition (voted October 2025, 99%+ approval) effectively dissolves Dinero DAO; deal status unclear as of mid-2026 but TVL has already collapsed from ~$90M to ~$4M as assets migrated to plumeETH
- Protocol is in wind-down mode — remaining $4M TVL is stranded capital awaiting migration; redemptions are possible but DEX liquidity for pxETH is near-zero
- pxETH buffer model still operates for remaining holders: under redemption pressure the buffer can be depleted, forcing users into multi-day validator exit queues on a near-empty protocol with thin secondary liquidity
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 uncertainty around Plume acquisition completion triggers redemption requests — Buffer drawn down rapidly on a near-empty protocol
- 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 near-zero liquidity at $4M TVL — Discount widens sharply; far worse than at $90M TVL
- 4.DeFi integrations using pxETH as collateral face liquidation pressure — Borrowers liquidated into the depeg; additional cascade
Risk Profile at a Glance
Overall: C (45/100)
Lower score = safer