rETH2 (reward ETH) is a token that represents users' ETH rewards in StakeWise Pool in a 1:1 ratio. These rewards do not physically exist, but their record is stored in the Beacon Chain, so they can be measured and used to back rETH2 in a 1:1 ratio. The record about the Pool's rewards specifically is calculated from the balances of StakeWise validators. The balances are measured from the Beacon Chain and submitted to the RewardETHToken contract using Oracles.

StakeWise Pool is a non-custodial staking solution where your staked ETH is pooled with other participants. Every deposit in the Pool gets tokenized into sETH2, StakeWise’s ERC-20 standard staked ETH token, and holders own the rights to the pool’s staking rewards. StakeWise Tokens play a key role in the Pool by making your stake liquid and opening opportunities to generate additional yield in DeFi protocols.