Yield Pool
The Yield Pool is a smart contract where ETH earnings can be obtained by staking inscription assets. ETH earnings are derived from the underlying ETH yield generated within the Smart Inscription Contract (APY = ~4%). Since not all inscription assets are staked, the actual ETH earnings during inscription minting will exceed 4%. For instance, if only half of the inscription assets are staked, the APY would be approximately 8%. Therefore, when deciding how to optimize the investment return on your 1 ETH, you have two options:
1: Stake 1 ETH directly in contracts like Lido and earn a 4% APY.
2: Convert all 1 ETH into inscriptions, then stake them in the Yield Pool to earn an APY far exceeding 4%. Eventually, you can redeem approximately 1 ETH by burning these inscriptions. (Why approximately? Because you will consume gas fees when minting inscriptions or when purchasing inscriptions on the secondary market, sellers calculate gas fees into the price, resulting in a certain premium.)
Last updated