Deployment Process

All tAssets (e.g., tETH, tAVAX, etc.) follow a standardized deployment process. By depositing the native asset or its liquid staking token (LST), users receive a proportional amount of the corresponding tAsset in return, representing their stake in the overall pool.

The following section uses tETH as a concrete example. While the details reference Ethereum and LSTs, the same mechanics apply broadly across other tAssets, adapted to their respective networks.

Following this, the protocol performs a series of rebalancing actions to accrue real yield through arbitrage, including:

• Conversion and Wrapping: Native ETH deposits will be automatically converted into LSTs. LST deposits may also be wrapped for further use in the yield optimization strategy.

• Leveraging on DeFi Platforms: Utilizing the protocol’s Safety Mechanisms and Profitability Assessments, LSTs may be used as collateral on lending DeFi platforms to borrow ETH. Borrowed ETH is converted into LST, further enhancing tETH's return through additional LST exposure.

• Interest Rate Convergence: tETH holders receive yield enhancements while helping to converge the fragmented ETH interest rate markets towards Ethereum’s “risk-free” rate.

• Restaking, Decentralized Offer Rates (DOR): In the near future, restaking of tETH’s underlying assets will be enabled to secure DOR, allowing users to potentially earn more rewards.