vETH is a tokenized asset consisting of ETH liquidity paired against liquid staking and restaking tokens. vETH generates yield through EigenLayer's Superfluid Staking.
vETH is a low-cap asset with questionable collateral reserves. This asset is exposed to the underlying risks of Vector Reserve, a protocol rated as Watch out.
Vector Reserve
vETH has an uncapped supply but has inflation control or burn mechanisms in place. vETH is potentially exposed to death spiral risk as its price depends on another asset; however, there are mechanisms in place to prevent reflexivity.