yETH
Introduction
yETH is our premier yield-bearing Ethereum asset, designed to offer users passive income while retaining full exposure to ETH. It serves as an optimal solution for DeFi participants looking to maximize yield without actively managing their holdings.
yETH integrates the ERC4626 standard with a yield vesting mechanism, ensuring a steady and predictable accrual of earnings. The token remains fully backed by Ethereum-based assets while seamlessly incorporating yield, making it ideal for both immediate liquidity and long-term accumulation strategies.
Underlying Asset
yETH’s core asset is WETH (Wrapped Ether), a tokenized version of ETH that ensures broad compatibility across DeFi applications. WETH maintains a direct 1:1 peg with ETH, providing deep liquidity and seamless interaction within Ethereum’s ecosystem. We selected WETH due to its universal adoption and foundational role in DeFi infrastructure.
Yield Strategies
yETH employs a diversified mix of market neutral strategies for yield generation. Current strategies include, but are not limited to:
Buying & holding ETH denominated zero coupon bonds such as Pendle PT Tokens
Vault depsoits such as in Morpho & Silo Vaults
Private Credit vaults such as offered by Midas & Upshift
LST & LRTs offered by leading ETH protocols
Leverage Looping - Borrow at x% and stake at y% for a (y-x)% net spread per loop.
The yield strategy allocation is actively managed to balance risk and return, with limits for each protocol to ensure diversification.
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