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uTokens

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What are uTokens?

uTokens (Unified Tokens) are overcollateralized synthetic tokens pegged 1:1 to the restaked asset of an LRT, such as ETH.

The protocol ensures that uTokens are minted only when directly correlated with their underlying asset, eliminating the risk of price-based liquidations or bad debts.

This design enables uToken holders to optimize yield through unified liquidity, mitigate slashing risks, and continuously earn (re)staking rewards on their collateral.

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Please note that uTokens do not bear yields, but the (re)staking rewards directly accumulate to the LRT.

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Key Features and Benefits

  • Enhanced Risk-Adjusted Yield: Maximize yield without the risk of price-based liquidations.

  • Diverse Opportunities: Unlock a broad range of restaking strategies supported by unified liquidity and seamless DeFi integration.

  • Risk Isolation: Slashing risks are confined to individual vaults, adding an extra layer of security.

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