YieldNest's ynETH: Advanced Restaking, Simplified

Over the past 6 months, Restaking has become one of the largest categories on Ethereum by TVL.

As of today, Liquid Restaking Protocols on EigenLayer are leading the charge with a combined TVL of over $15bn worth of assets.

In this article, we take a look at ynETH by YieldNest, a new Native Liquid Restaking Token (nLRT) on EigenLayer that offers simplified access to superior risk-adjusted returns.

→ Restake ynETH Now for a 15% Lifetime Boost on Seeds (YieldNest points)

What is YieldNest?

YieldNest is a restaking protocol focused on delivering straightforward, risk-adjusted restaking strategies. The protocol’s core mission is to simplify the restaking process by creating user-friendly structured products based on native and non-native LRTs. 

YieldNest is purpose-built to offer users the best-in-class exposure to the restaking market. The protocol is backed by an independent research firm, operated by the Llama risk team.

With plans to release individual LRTs to isolate risk across different AVS categories, YieldNest is well positioned to grow within a dynamic restaking market that will span multiple verticals. 

YieldNest already has support from multiple DeFi founders, having raised $5.2m in a round led by Faculty Group, with support from Sam Kazemian (Frax), Michael Egorov (Curve), Loi Luu (Kyber), Winthorpe & C2TP (Convex).

Led by industry veterans, YieldNest aims to be the top liquid restaking solution, unlocking next-gen strategies and establishing itself as the leading protocol for liquid restaked assets.

What is ynETH?

ynETH is a Native Liquid Restaking Token (nLRT) on EigenLayer and YieldNest’s flagship product. 

With ynETH, users can earn both base layer and restaking rewards, while keeping their position liquid.

ynETH is designed to optimize ETH yields through a curated basket of AVSs, across categories such as co-processors, oracles, data availability and more. With support from their dedicated risk team (YieldNest Risk team), the YieldNest DAO selects and vets all operators and AVSs within ynETH’s basket to ensure the highest possible risk-adjusted returns.

How Does ynETH Work?

Restakers deposit ETH into YieldNest’s restaking pool and receive ynETH tokens in return. These tokens act as tradable and liquid "receipt" tokens representing the underlying yield-generating restaked ETH.

The rewards generated from restaking are distributed to ynETH holders, veYND token holders, and operators. The benefits and rewards for ynETH are a combination of Ethereum staking APY, AVS Yield, and airdrops (see all rewards & points in image below). Unlike rebasing tokens, the amount of ynETH held remains constant over time, with the underlying value increasing as rewards auto-compound and accrue on-chain.

A Curated Basket of AVSs

YieldNest’s ynETH incorporates a curated set of AVSs, each vetted to maximize returns while minimizing risk. This diversified basket approach spreads the risk across multiple services, enhancing the overall stability and reliability of the yields.

Auto-Compounds ETH Yields

Another feature of ynETH is its auto-compounding mechanism. All rewards earned are automatically reinvested back into the staking pool, thereby exponentially increasing the yield over time without requiring manual intervention from the user.

ynETH vs. Other LRTs

→ Restake ynETH Now for a 15% Lifetime Boost on Seeds (YieldNest points)

Benefits of ynETH

Keep Your Restaking Position Liquid

Users can trade their tokens on decentralized exchanges without being subjected to the standard withdrawal period. This flexibility enables users to manage their investments and access funds for other opportunities or personal needs without delay.

Enhanced Yield Opportunities

ynETH offers combined rewards from Ethereum staking and AVSs, resulting in higher yield potential. The auto-compounding feature further increases the token's value over time by automatically reinvesting earned rewards, eliminating the need for manual intervention.

Risk Mitigation

By utilizing a curated basket of AVSs, ynETH spreads risk across multiple services, minimizing the impact of any single service's underperformance. Additionally, the YieldNest DAO thoroughly vets all operators and AVSs, ensuring high-quality and reliable staking opportunities for users.

Integration with DeFi Protocols

ynETH can be leveraged in various DeFi applications, such as lending on platforms like Aave or by providing liquidity to external DeFi protocols like Curve. Integrations across DeFi provide additional income-generating opportunities, enhancing the overall return on investment for ynETH holders.

Streamlined Restaking Experience

ynETH simplifies the restaking process by abstracting away complexities, allowing users to benefit from restaking without managing individual strategies. Holding ynETH provides access to a diversified basket of rewards, making it easier to manage a staking portfolio efficiently.

A Look at Seeds (YieldNest Points)

The YieldNest Seeds Program is an initiative designed to reward active community members and partners within the YieldNest ecosystem. Aimed at early adopters who play a crucial role in the platform's growth and success, the program connects users' dedication and support to tangible rewards, including future participation in airdrops. YieldNest is launching their new deterministic points system, which is based on on-chain activities

The accumulation of Seeds, which are essentially reward points, reflects a user's contributions and serves as a stake in YieldNest’s forthcoming airdrop seasons.

In total, YieldNest plans to distribute over 60% of its YND token supply to the community over the life of the project, with multiple snapshots slated for this year.

How to Earn Seeds?

Users can earn Seeds by restaking their ETH with YieldNest, receiving 2 Seeds per ETH per hour. Additionally, users can increase their Seed earnings through various boosts. Beyond staking, it is anticipated that users will be able to earn Seeds through activities like providing liquidity to DeFi protocols, making referrals and more. The program is designed to continually introduce new methods for earning Seeds, ensuring ongoing engagement and reward potential for users.

Unlock a 15% Lifetime Boost on Seeds

Users that get ynETH via the Stake App have the opportunity to obtain a Pioneers NFT, which grants access to a 15% Lifetime Boost on Seeds.

To qualify, users must restake a minimum of 5 ETH via Staking Rewards’ official Stake App.

How to Get ynETH + 15% Boost on Seeds?

Acquiring ynETH is a straightforward process:

1. Go to the Stake App on stakingrewards.com
2. Connect your Ethereum Wallet
3. Select YieldNest (ynETH)
4. Enter 5 ETH (the minimum amount required to get the Pioneers NFT)
5. Click “Stake”

→ Restake ynETH Now for a 15% Lifetime Boost on Seeds (YieldNest points)

By following the above steps, you will be eligible to mint a Pioneer NFT at the end of the promotion period.