> For the complete documentation index, see [llms.txt](https://docs.treehouse.finance/protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.treehouse.finance/protocol/tasset/architecture/yield-optimization.md).

# Yield Optimization

All tAssets (e.g., tETH, tAVAX, etc.) share the same core design principles of yield optimization, safety mechanisms, and efficiency. Each *tAsset* is built on top of its native underlying LST ecosystem and inherits the mechanics outlined here.

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.

<figure><img src="/files/nVdoDtoVEqssDCapXd5N" alt=""><figcaption></figcaption></figure>

$$\text{tETH} = \text{LST} + \text{Market Efficiency Yield} + \text{Points}$$<br>

The yield generated by *tETH* is derived from liquid staking tokens (LSTs) further enhanced by interest rate arbitrage opportunities available on lending protocols.&#x20;

Here's how it works:

* **Base Yield**: *tETH* uses LSTs as its underlying asset, which in turn generates yield. This yield is further enhanced through interest rate arbitrage strategies available on lending protocols.
* **Enhanced Yield Through Borrowing**: Depending on the [Safety Mechanisms ](/protocol/tasset/architecture/safety-mechanisms.md)and [Profitability Assessments](/protocol/tasset/architecture/profitability-assessments.md), the LSTs backing *tETH* may be utilized as collateral to borrow ETH. The borrowed ETH is then converted into LSTs to receive additional Ethereum Proof-of-Stake (PoS) rewards, effectively amplifying *tETH*'s overall yield while contributing to the convergence of fragmented rates.
* **Additional Rewards**: In addition to the underlying yield, holders of *tETH* may also benefit from rewards earned during the points campaign.<br>