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.
Assets
By investing in this opportunity, your exposure to ETH will be through the WETH and hETH tokens, which are different flavors of ETH, on the Arbitrum blockchain.
Yield source
Your yield comes from bridging fees that users pay when transferring ETH into and out of Arbitrum. Every transfer in this pool incurs a fee, which is paid out to depositors. On top of this, the provider also boosts your returns through additional marketing incentives. Your yield can fluctuate based on transaction volume and the value of incentive payouts.
Risk perspective
Risks include smart contract dependencies and the rare chance of a fraudulent bridge transfer being accepted, which could lead to undercollateralization.
Provider
Hop
Chain
Arbitrum
Contract address
0x59745774Ed5EfF903e615F5A2282Cae03484985a
Yield8.7%
30d APY
Base
0.6%
Reward
8.1%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.