ynETH
Last updated
Last updated
ynETH is an nLRT that exposes users to a dynamically curated Basket comprising AVSs across multiple industry verticals. The YieldNest DAO carefully selects and fully vets all of the operators and AVS within ynETH’s Basket to deliver an nLRT with the highest possible risk-adjusted yield.
Restakers deposit ETH into YieldNest’s restaking pool and receive ynETH back as a tradable and liquid “receipt” token representing the underlying yield-generating restaked ETH. The generated restaking rewards are distributed back to ynETH holders, veYND tokens, and operators.
ynETH’s APY = Ethereum staking APY + AVS Yield + Airdrops
ynETH is not a rebasing token, meaning that the amount of ynETH held will not change over time. Instead, the underlying value of the token will increase as the rewards auto-compound and accrue to the token on-chain.
Value Accrual: ynETH auto-compounds rewards, enhancing token value over time. As rewards are distributed and compounded, the value of ynETH grows.
Value Accrual Example (assuming 12.5% APY for ynETH)
Restaking time
Amount ynETH
Value in ETH
Day 0
1 ynETH
1 ETH
Day 180
1 ynETH
1.0625 ETH
Day 365
1 ynETH
1.125 ETH
Controlled Exposure: Holding ynETH allows users to earn boosted yields by restaking ETH to a pre-selected and carefully vetted Basked of AVS categories—all by simply holding a single liquid token.
Providing Liquidity: Users can use ynETH to provide liquidity to external DeFi protocols like Curve that support ynETH pools to earn additional revenues from swap fees and liquidity mining.
Lending/Borrowing: Users lend ynETH on decentralized money markets like Aave or Euler or use it as collateral to borrow other assets, including ETH or various stablecoins. Furthermore, users could leverage their ynETH by borrowing ETH against it and depositing that ETH back to YieldNest to acquire even more ynETH.
Realizing Restaking Profits: Holders can always withdraw their ynETH for the underlying ETH plus the accumulated restaking revenue from AVSs on YieldNest or swap ynETH for ETH on decentralized exchanges for like-kind assets like Curve.
