Yield Bearing ETH (ybETH)
Last updated
Last updated
Yield Bearing ETH (ybETH) is the counterpart to . It gets staking yield from the underlying LSD until the unlock price is reached.
For example, suppose Alice buys 50 ybETH at an unlock price of $10,000, as shown below.
Alice is getting the staking yield of 50 stETH through her 50 ybETH.
The price of ybETH will typically be substantially lower than 1 ETH, giving Alice leverage on her yield farming. For example, suppose Alice paid a price of 0.05 ETH per ybETH. In that scenario, she is getting 20x leverage on her yield farming.
The ybETH token only gives yield until the unlock price is reached. Once the unlock price is reached, ybETH balance for that unlock price is reset to zero for all users. This is because the principal is transferred from ybETH to plETH once the unlock price is reached.
Thus, purchasing ybETH means you need to consider the price of the token, as well as the timing and likelihood of the unlock price hitting.
The ybETH token must staked to obtain yield. Unstaked ybETH does not get yield.
