Proportional Distribution

Every strategy allows for a specific distribution of the depositing tokens based on the supported protocols and their underlying markets. When depositing a specific amount of supported tokens, you have the flexibility to distribute your deposit across multiple staking protocols in any proportion you choose. This means you can allocate varying percentages of your deposit to different protocols according to your preference. Following this initial distribution, you also have the option to direct the LSTs received from the staking towards staking protocols. You can choose to reinvest these rewards into any number of other protocols, again in any proportion, as long as the underlying re-staking protocol supports the given LSTs. This process is streamlined by an advanced mechanism known as the LYS aggregate mechanism, which facilitates the allocation of LSTs into your selected protocols as per your specified proportions.

For example, when you deposit 1 ETH, you have the option to allocate half of it (0.5 ETH) to staking protocol A and the other half to staking protocol B. This action results in you receiving 0.5 LSTa from protocol A and 0.5 LSTb from protocol B. Following this, you can decide to re-stake the LSTs, distributing them equally, with 50% going into protocol Y and the remaining 50% going into protocol Z. The LYS aggregate mechanism facilitates this process by automatically re-staking the 0.5 LSTa and 0.5 LSTb into the chosen protocols, as long as protocol Y supports LSTa re-staking and protocol Z supports LSTb re-staking.

Any liquid token received during the staking/re-staking process will be held in the LYS vault and linked to your tokens so you can withdraw or redeem them as you see fit. Every deposit will mint whyETH, giving you liquidity on other DeFi protocols while also receiving rewards from the LSTs and LRTs based on the strategy you created.

Each protocol incurs fees when staking or re-staking. These will be held by the protocols in their treasuries.

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