> For the complete documentation index, see [llms.txt](https://ascend-fi.gitbook.io/ascend_fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascend-fi.gitbook.io/ascend_fi/protocol/stablecoin-yield.md).

# Stablecoin Yield

Users can deposit Liquid (re)Staking Tokens (LSTs or LRTs) or ETH which will be converted to (LSTs/LRTs).\
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The deposited collateral generates yield through the Liquid Staking & Restaking process. The protocol supports non-rebasing versions of collateral, which means the value of the collateral increases over time. \
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The additional yield portion of the collateral is periodically used to buyback GREEN from the market. The whole exchange process happens through smart contracts in a decentralized & trustless manner. 

The newly acquired-GREEN is then distributed among existing GREEN holders. It is estimated that the GREEN holders will earn twice the prevailing Liquid (re)Staking Token APR.

**Scenario**

* Anne deposits $135,000 of weETH and mints 67,500 GREEN
* Jack deposits $25,000 weETH and mints 12,500 GREEN
* **Current GREEN circulation** = 67,500 + 12,500 = 80,000
* **Current collateral** = $135,000 + $25,000 = $160,000 of weETH

**1 year later** 

* APY from Liquid Staking & Restaking is 7%
* LST + LRT income = $160,000 \* 7% = $11,200 
* Protocol buybacks of GREEN total $11,200
* $11,200 of GREEN is distributed among all GREEN holders, which equates to an APR of 14% on the 80,000 GREEN in circulation.