> For the complete documentation index, see [llms.txt](https://docs.heroglyphs.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.heroglyphs.com/seba/yield.md).

# 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](https://app.beefy.com/vault/curve-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* After the lock period, the initial capital can be withdrawn, but any yield generated remains in the system.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. <mark style="color:red;">If all shares are burned</mark>, this user can never claim any rewards again unless they opt in again with a new validator to earn shares.