yETH
Overview
yETH is a user-governed yPool consisting of various Ethereum Liquid Staking Derivatives (LSTs).
The yETH protocol is an Automated Market Maker (AMM) for LSTs. Each LST in the yETH pool is priced according to the amount of beacon chain ETH it represents. This lets users deposit their LSTs into the pool and receive yETH tokens pegged 1:1 with beacon chain ETH. Users can also stake their yETH tokens to mint st-yETH, accrue yield, and participate in yETH governance.
This AMM model, combined with the governance and incentive mechanisms of the yETH protocol, aims to provide an optimal risk-adjusted yield for ETH staking by dynamically adjusting the weights of the LSTs in the pool. It also offers users flexibility with single-sided deposits and withdrawals, and maintains the pool's balance and diversification through a weight management system.
The yETH protocol is governed by its users, who can vote to adjust the weights of the LSTs in the pool, helping to maximize yield and mitigate risks associated with individual LSTs.
All yields generated by yETH go to Staked yETH (st-yETH) holders, making yETH an ideal token for Liquidity Providing in stableswap pools like those on Curve. To acquire yETH, users can mint yETH by depositing LSTs or swap against the yETH/ETH Curve pool.
yETH follows the standard yPools specification for
- Staked Tokens
- Staked Token User Vote Weight
- Pool Weights for each LST
- Single Sided Deposits and Withdrawals