uTokens

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.

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

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.