Yield-Bearing Assets

Liquid Staked Tokens, Liquid Restaked Tokens

Ionic allows for integration of any yield bearing asset onto Ionic market, to further increase the composability of Mode Ecosystem and "unlocking liquidity" behind yield-bearing assets. Thanks to the ERC-4626 integration one can deposit any such asset as collateral and still be exposed to the yield and/or points the assets brings, thus creating a loan that pays itself.


LSTs otherwise know as Liquid Staked Tokens, are ETH staked through protocols like Lido, Rocket Pool etc. such protocols operate a network of nodes and will use your deposited ETH in their nodes. They allow you to get exposure to Ethereum Proof-of-Work yield without the need of staking it yourself as well as reducing the minimal entry for node from 32 ETH to any ETH you wish to skate. By holding the LST your are getting ETH yield. Supplying and collateralising your LSTs on Ionic allows you to execute on other DeFi strategy without loosing the exposure to the price of ETH and ETH yield.


LRTs also known as Liquid Restaked Tokens are liquid representation of restaked LSTs on EigenLayer(EL). In short: one can restake their LSTs into EL, however once you do that you will not be able to withdraw your tokens for undisclosed time, in order to be more "liquid" and being able to move you assets around LRTs like Ether.fi and Renzo etc. were created.

These protocols let you stake your ETH and/or LST and mint a liquid derivative from it in the form of an LST. Minting an LST allows you to be exposed not only to the whole EigenLayer ecosystem and it's points, but also yields of validation, ie staked ETH (note: Most of LRT protocols run their own points program on top of EL, so you get points from both protocols). Supplying and collateralising your LRTs on Ionic allows you to keep earning all of those points, plus the ETH yield, while using borrowed assets. We believe that the future is behind yield-bearing assets thus we put utmost attention to any such protocol coming to Mode to partner up for the maximum capital efficiency for any user. You can see the current available assets in the app and their respectable 0x in the docs. Yield-Bearing assets on Ionic - the loans that pay for themselves!

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