Technical Specification

An overview of the technical specification and user flows for demETH.

$demETH is constructed using the OFT-20 Omnichain token standard from our partner, LayerZero.

$demETH will initially be made available on Arbitrum and Ethereum. As a LayerZero compatible token, it can be seamlessly bridged to any of the LayerZero network chains.

Minting process in detail:

• The user engages with the Demether front end on Arbitrum or Ethereum to deposit $ETH or an accepted LST and must pre-select the destination chain to mint the demETH LRT.

  • Ether will be swapped for an accepted LST via a pre-configured liquidity pool either through a reputable venue such as Uniswap or Curve to benefit from deep liquidity and minimise slippage;

  • The LST is deposited into EigenLayer or Symbiotic (currently demETH code has been audited for integrations into both with the ability to change the configuration);

  • $demETH tokens are minted and deposited into the user's wallet on the destination chain (aka partner chain).

• If the user flow has started on Arbitrum, assets are bridged to Ethereum before the sequence above

• Tokens are not locked on the destination chain by Demether; users are free to engage with LayerZero supported bridges or other methods of bridging tokens as required

Yield boost process in detail:

• Wallets controlling (but not necessarily directly holding demETH) tokens on a partner chain for a full 7 day period are eligible to receive a loyalty yield boost

• The number of eligible tokens are calculated as a pro-rata ratio of the minimum number of demETH tokens controlled by that wallet over the 7 day period relative to the total number of demETH tokens in circulation on that chain

• Claims are via the corresponding page of the Demether dapp and eligible tokens are calculated on Demether's backend systems