Introducing Protocol Yield Share (PYS)
eBTC users can borrow with zero fees – no interest, opening, or closing fees. I. Instead, the protocol's income derives from a share of the staking yield, enhancing eBTC's utility and LP incentives.
How is this possible? Through its innovative revenue model and efficient use of collateral. Instead of imposing upfront fees or interest on borrowed amounts, eBTC generates revenue through its Protocol Yield Share (PYS) mechanism.
This mechanism involves taking a percentage from the yield earned on the deposited collateral. Initially set at 50% of the yield, it ensures that the protocol earns revenue while borrowers enjoy fee-less borrowing.
💸 stETH's yield.
As a rebasing token, stETH's value increases over time as Ethereum staking yields are distributed to holders. This yield is derived from a daily rebase process, which increases the balance for each user and is then utilized in the PYS mechanism, which allocates a percentage of stETH underlying shares from the total balance increase during each rebase.
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