Yield

The yield generation system within Seba is designed to be sustainable, perpetual, and aligned with validator contributions.

Yield Manager

Execution rewards generated by participating validators are periodically collected by a backend process (every five epochs).

• These rewards are sent to the Yield Manager, which deposits them into the Yield Vault after converting ETH into the chosen yield-generating asset.

• Half of these rewards are locked as principal forever, ensuring the vault grows continually and maintains its yield generation capacity indefinitely.

For now the main yield-generating strategy used is Beefy eUSD/USDC. Once the DAO governance is in place, it will be possible to change the yield strategy.

MEV Rewards

MEV rewards follow a similar flow:

• 50% are locked in the vault as principal

• The remaining 50% are converted to sBOLD and sent to the pybSeba Vault for immediate or future distribution to share holders.

Supporter Pledge Program

To bootstrap the protocol and make participation more attractive in its early stages, 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• After the lock period, the initial capital is able to be withdrawn, but any yield generated remains in the system.

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.