How it works
bpETH is a reward-bearing token. Its value will increase as the rewards auto-compound and accrue to the token on-chain. Restakers deposit ETH or LST's into BPM Finance's restaking pool and receive bpETH back as a tradable and liquid token representing the underlying yield-generating restaked ETH. The generated restaking rewards are distributed back to bpETH holders and partner operators.
bpETH exposes users to a dynamically curated Basket comprising AVSs across multiple industry verticals. BPM Finance selects and vets all of the operators and AVS to secure in order to provide rewards to Restakers.
How it works:
Restakers stake their ETH or LST to mint bpETH tokens indicating fractional ownership of the underlying assets
bpETH contracts distribute the deposited tokens into Node Operators
Rewards accrue from the various services to the bpETH contracts. The price of bpETH token assumes the underlying price of the various rewards and staked tokens
Restakers can swap their bpETH tokens for other tokens on AMMs for instant liquidity or redeem underlying assets through bpETH contracts
Additionally, restakers can further leverage their bpETH in the DeFi ecosystem
bpETHaccrues multiple rewards automatically:
**`bpETH APY = Ethereum staking APY + AVS APY + Airdrops + BPM Finance
Value accrual example assuming an APY of 12.5%:
The price of bpETH is determined by the total amount of assets held by the deposit vault, deployed to EigenLayer, and the pending rewards as determined by the feeds of oracles divided by the total supply of bpETH. Accumulation of validation rewards and slashing penalties (if any) cause the share price to rise and fall respectively.
Restaking time
Amount of bpETH
Value in ETH
Day 0
1 xbpETH
1 ETH
Day 180
1 xbpETH
1.0625 ETH
Day 365
1 xbpETH
1.125 ETH
Use Cases
Multiple rewards, no frictions: Holding bpETH allows users to earn boosted yields by restaking ETH to a pre-selected and carefully vetted AVS's— by simply holding a single liquid restaked token.
Providing Liquidity: Users can use bpETH to provide liquidity to external DeFi protocols to earn additional revenues from swap fees.
Lending/Borrowing: Users lend bpETH on decentralized money markets like Aave or Euler or use it as collateral to borrow other assets, including ETH or various stablecoins. Furthermore, users could leverage bpETH by borrowing ETH against it and depositing that ETH back to BPM Finance to acquire even more of bpETH.
Restaking Profits: Holders can withdraw bpETH for the underlying ETH plus the accumulated restaking revenue from AVSs on BPM Finance or swap bpETH for ETH on decentralized exchanges for other assets.
Validation
For native ETH restaking: ETH deposited into bpETH is distributed to BPM Finance's selected operators in 32 ETH packets to run native ETH validators. The withdrawal credentials of these validators flow through Eigenpods, enabling native ETH restaking on Eigenlayer.
For LST restaking: there is no minimum required to delegate the assets to node operators on Eigenlayer.
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