Backing Ratio
The total market cap of lcdETH is backed by the total ETH in the Reserve Bucket.
Liquidity flows into the Reserve Bucket through the following sources -
- Yield generated by the
Pending Bucketfunds. - Bribes/Incentives by parties voting on the liquidity in the
Reserve Bucket. - Trading fees/emissions from adding liquidity to LSD/ETH pools.
- Redemption fees paid from
lcdETH➡️ETHredemptions.