How does superOETHb work?

SuperOETHb is a supercharged liquid staking token that combines Ethereum’s native staking yield with compounded rewards from layer 2 integrations. When users stake their ETH, they receive SuperOETHb tokens, which are rebasing ERC-20 tokens that automatically grow in the user’s wallet as ETH yield is harvested and compounded. SuperOETHb derives its yield from two primary sources: the Beacon Chain’s staking rewards via bridged Wrapped OETH (wOETH) and rewards from Aerodrome through a protocol-owned concentrated liquidity position on the Base network. This dual-yield mechanism ensures that users benefit from both the security of Ethereum’s PoS consensus and the additional incentives provided by Aerodrome’s liquidity pools.

Where does the yield come from?

The yield generated by SuperOETHb comes from two main sources. First, the Beacon Chain staking rewards are obtained by staking bridged Wrapped OETH (wOETH) on Ethereum, leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure secure and efficient yield harvesting. Second, SuperOETHb earns rewards from Aerodrome by maintaining a concentrated liquidity position paired with WETH in a tightly controlled price range. Aerodrome incentivizes this liquidity provision by distributing AERO rewards, which are harvested and reinvested into WETH and subsequently distributed to SuperOETHb holders. This combination of staking yields and concentrated liquidity rewards results in a market-leading APY for SuperOETHb, offering users enhanced returns without significant additional risk.

How is the price of superOETHb pegged to ETH?

The price of SuperOETHb is maintained at a 1:1 peg to ETH through a robust liquidity mechanism integrated with Aerodrome’s concentrated liquidity pools. SuperOETHb is paired with WETH in a highly liquid Aerodrome pool, ensuring that users can always exchange SuperOETHb back to WETH at a fixed rate of 1 SuperOETHb = 1 WETH, minus swap fees. This deep liquidity pool not only supports the peg but also allows the protocol to earn AERO incentives, which are reinvested to sustain and enhance the liquidity position. Additionally, the rebasing nature of SuperOETHb ensures that any yield generated is automatically reflected in the token balance, maintaining the peg while simultaneously increasing the user’s holdings. This dual approach of liquidity provisioning and automatic rebasing ensures that SuperOETHb remains tightly pegged to ETH, providing users with both stability and growth.