Interaction with DRST tokens and liquidity pools

Derivative Restaked Tokens (DRST) Documentation

Derivative Restaked Tokens (DRST) are minted 1:1 against the deposited base asset at genesis and are redeemable on demand with no waiting period. DRST are non-rebasing: all rewards accrue into the price via a deterministic exchange rate that only increases as value is added.

Minting & Exchange Rate

• Initial rate: 1 DRST = 1 unit of the base asset at mint.

• Accrual model (non-rebasing): Rewards (staking + Aurex interest + fee share) are added to pool NAV, increasing the exchange rate.

• Programmatic rate (monotonic):

  • ( \text{exchange_rate}_t = \frac{\text{NAV}_t}{\text{total_DRST_supply}_t} )

  • Redeem: ( \text{underlying_out} = \text{DRST_redeemed} \times \text{exchange_rate}_t )

  Rewards increase the exchange rate over time, reflecting cumulative yield.

  Liquidity and Redeemability

  • No lock-up / no cooldown: DRST are fully liquid and redeemable at the current exchange rate.

  • Immediate in/out flows don't affect other holders’ accrued value.

  DeFi Compatibility

  DRST are ERC-20 compatible and usable across:

  • DEX/AMM swaps

  • Liquidity provision (LP) pools

  • Lending/borrowing markets

  • Structured yield products

  Yield accrues in price, allowing protocol capital reuse without losing incentives.

  Liquidity Pool Integration

  • LPs can be denominated directly in DRST.

  • Auto-compounded yield maintains pool simplicity—no periodic reward claims needed.

  Capital Efficiency

  DRST circulation with rising exchange rate from compounded rewards enhances capital efficiency. Positions can secure base staking, Aurex interest, and DUO fee share while being deployable across DeFi uses.