In the vast world of DeFi (decentralized finance), opportunities are everywhere for stakers. YieldNest is embarking on an adventure to make a splash in the EigenLayer DeFi ecosystem and disrupt the liquid restaking industry.
We’re on a mission to ramp up our ecosystem to deliver as many opportunities to ETH restakers as possible.
Within this article, we will explore the innovative solutions that our protocol introduces, its significance within EigenLayer, and its potential for expansive growth.
It’s time to dive under the hood of the YieldNest ecosystem.
What is YieldNest?
YieldNest is a decentralized liquid restaking protocol, leveraging EigenLayer, that prioritizes security of the protocol, user funds, and Ethereum. We enable restakers to boost rewards by securing Ethereum, alongside selecting between a carefully curated set of Actively Validated Services (AVSs), while remaining liquid.
This drastically improves capital efficiency for ETH holders, who can explore other opportunities in DeFi with their Liquid Restaking Tokens (LRTs).
Benefits of Liquid Restaking with YieldNest
YieldNest brings a plethora of benefits to its users and the overall Ethereum ecosystem. Firstly, the introduction of a LRT reduces the opportunity costs for stakers, who can secure Ethereum while taking advantage of various yield bearing opportunities in crypto.
Not only is this beneficial for stakers (who benefit from more rewards) but also Ethereum, since reducing the opportunity cost of staking should induce more ETH staked.
Moreover, YieldNest prioritizes security, boosting the risk-adjusted returns for restakers through carefully vetting, isolating and categorizing every AVS that is supported. This is important, since users that opt-in to restaking via EigenLayer or any other restaking protocol accept the additional risk of slashing that is imposed by EigenLayer on AVSs, which could cause loss of funds.
This vetting process is initially carried out by YieldNest’s Strategy Manager, managed by the YieldNest DAO.
YieldNest also sets itself apart across the industry with the following key core features and offerings:
- Isolated deposit pool
- Transparent Curated AVS Baskets
- Isolated AVS strategies
- Independent Risk Team to monitor protocol risks and issues
- Symbiotic relationship between the AVS, Operators and Restakers
ynETH: Our Native Liquid Staking Token
YieldNest broadly offers two categories of tokens, Liquid Restaking Tokens (LRTs) and native Liquid Restaking Tokens (nLRT). LRTs represent restaked Liquid Staking Tokens (LSTs) or ERC-20 tokens that earn rewards from AVSs and any base staking reward. nLRTs eliminate the need to acquire LSTs, by allowing users to directly stake ETH into EigenLayer.
YieldNest will be launching with our flagship nLRT, ynETH, and seeking to add additional LRTs in the future.
LRTs and nLRTs are fully composable across DeFi, unlocking a range of opportunities for holders. For example, users can provide liquidity to a pool on a decentralized exchange, or to a lending protocol, in exchange for additional yield.
Learn more from our Technical Deep Dive educational video:
YND Tokenomics
YieldNest incorporated vote-escrow tokenomic principles, backing the YND token with a YND:ETH LP token. Users will be able to provide liquidity for the YND:ETH pair on decentralized exchanges and stake the LP token to dedicated YieldNest smart contracts to receive veYND tokens, granting them governance power.
The longer that users lock their LP tokens, the more veYND tokens they will be able to receive. Additionally, veYND token holders will earn ~10% of the protocol revenue generated by YieldNest. This implementation aims to reward long-term commitment and incentivize governance participation.
Please note that the YND token has not yet been released — the above information will apply after TGE and integrations are completed and can be prone to changes.
YieldNest will be incorporating a DAO and subDAO structure, enabling the community to make major decisions within the protocol. This is done so via chambers, each consisting of a group of leaders who manage the chamber, elected based on staked YND tokens. Chambers are responsible for voting on a specific category of topics. We envision a self-sustainable, decentralized protocol that operates independently of the core YieldNest team.
Conclusion
Through an emphasis on security, and decentralization, YieldNest is poised to become the default liquid restaking protocol for restakers seeking superior risk-adjusted returns.
We invite you all to come along with us on this journey, as we gear up to launch our mainnet.
About YieldNest
YieldNest is a next-generation liquid restaking protocol that provides simple-to-understand, risk-adjusted restaking strategies. Its mission is to abstract away the complexities of restaking by building a one-stop-shop, easy-to-understand nLRT and LRT-based products with superior risk-adjusted returns.
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