Stablecoin Yield

Users can deposit Liquid (re)Staking Tokens (LSTs or LRTs) or ETH which will be converted to (LSTs/LRTs). 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. 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.