Introducing zETH: Revolutionizing ETH Yield & Hold

2 min readJun 21, 2023

Introduction

With $zETH, users can expect a new level of optimization, stability, liquidity, and profitability. This innovative product offers aggregated ETH, providing an optimized experience for ETH holders.

$zETH is the ultimate ETH pegged stablecoin that leverages the omnipool as collateral, delivering an array of unparalleled advantages:

$zETH, a rebase token, thrives on the ETH omnipool’s APY
Minted using LP tokens from ETH Omnipool
Backed by ETH pools on Curve Finance
Easily redeemable with ETH/frxETH/wETH, offering protection against depegging risks

Omnipool

Brace yourselves for the powerful ETH omnipool, fueled by its strategies:

stETH/frxETH + Convex Frax Booster
alETH/frxETH + Convex Frax Booster
sETH/frxETH + Convex Frax Booster

The ETH omnipool optimizes yield through:

Harvesting rewards
Rebalancing between pools
Reinvestment

Thus, provides native APY in ETH without the need for an emission system token.

Rebase

$zETH is a rebasing token that increases user balances without requiring any staking. But! Just like UZD, zETH is a pool-aware token, enabling the diversion of rewards from zETH collateral held in pools for bribes and locks.

The pool-aware mechanism harnesses the Curve flywheel, unlocking an astonishing 1.2–1.4x boost in yield from collateral utilization. As the pool expands, more rewards flow into the bribes. Hence, bribes fuel themselves and ensure a constant injection of growth fuel for the pool.

With this revolutionary architecture, concerns about stop incentivization or yield reductions are mitigated. By design, zETH is engineered to dominate the yield charts, streamlining the liquidity provider’s mission.