Yield

Seba's yield generation system is built to be sustainable, ongoing, and closely linked to validator contributions.

Yield Manager

Execution rewards earned by participating validators are regularly collected by a backend process (every five epochs). The Yield manager receives 100% of execution rewards and distributes:

• 50% permanently to the Yield Vault to generate yield by converting ETH into a yield-generating asset.

• 50% is converted into sBOLD and sent to the pybSeba vault as rewards for the validators.

NOTE: Currently, the primary yield-generating strategy employed is Beefy eUSD/USDC. Once the DAO governance is in place, it will be possible to change the yield strategy.

NOTE: MEV Rewards are included in execution rewards.

Supporter Pledge Program

To bootstrap the protocol and increase early participation, Seba offers a supporter pledge program.

• Individuals can pledge ETH for a minimum lock period of 30 days, during which it generates yield in the vault.

• After the lock period, the initial capital can be withdrawn, but any yield generated remains in the system.

• All deposits will be converted to the yield-generating asset, so will roughly follow the USD value at the moment of deposit. Capital will be returned in ETH denominated in USD value upon deposit

NOTE: Shareholders can burn shares to claim yield in perpetuity. If all shares are burned, this user can never claim any rewards again unless they opt in again with a new validator to earn shares.