Deployment Process

By depositing ETH or a liquid staking token (LST), users receive a proportional amount of tETH in return to represent their stake in the overall tETH pool.

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 the Treehouse AVS, allowing users to potentially earn more rewards.