yPools
yPools are user-governed baskets of similar assets, typically liquid staking tokens(LSTs). They serve as both a re-balancing index and liquidity pool (AMM) of the underlying assets. This AMM model, combined with governance and incentive mechanisms, aims to provide an optimal risk-adjusted yield for the underlying asset by dynamically adjusting the weights of the LST tokens in the pool.
Users stake their yPool tokens to mint st-yTokens, accrue yield, and later unstake st-yTokens to receive yPool tokens back according to their earnings. Stakers receive all yield and slashings from the underlying yield sources and earn incentives if they participate and vote in their respective yPool governance.
yPools are governed by their users who stake their yPool tokens. Once staked, yPool token holders can set parameters, weights and whitelist pool assets.
Want to dive into the details? Check out the Developer Docs:
yETH
The inaugural yPool is yETH, which is a basket of LSTs of Beacon Chain ETH (stETH, rETH, etc.), earning Ethereum's Validator Staking rewards.