Hop ETH Bridging
This pool facilitates moving WETH and hETH in and out of the Arbitrum blockchain. Your yield comes from bridging fees when assets are moved between chains.
This opportunity works well for investors who want long exposure to Ethereum (ETH). Keep in mind, your returns are impacted by the price of ETH and this pool's yield.
Risks include general smart contract risks with the bridge and the underlying rollup. Hop mitigates this by utilizing bonders who run full nodes, allowing them to verify transactions with certainty before they are processed. The bridge operates with a shortened 24-hour challenge period, during which watchers can challenge any fraudulent transfer roots. If a fraudulent transaction is caught, the bonder loses their collateral, ensuring strong incentives to maintain security. This setup, while highly secure, carries some trust assumptions, particularly due to the shorter challenge period compared to the underlying rollups.
Your yield comes from earning fees that users pay when bridging ETH to and from Arbitrum, plus protocol incentives. The yield can change depending on transaction volume and value.
