Exactly Wrapped EtherPrice

(EXAWETH)

exaWETH is a yield-bearing receipt token, often referred to as an "exaVoucher," that follows the ERC-4626 standard. When you deposit Wrapped Ether (WETH) into the Exactly Protocol’s Variable Rate Pool, you receive exaWETH in return. It serves as a digital receipt representing your share of the pool and your claim on the deposited assets plus any interest earned from borrowers within the ecosystem.

No, exaWETH is not pegged 1:1 with ETH. Unlike standard WETH, which maintains a direct 1:1 ratio, exaWETH is a value-accruing token. Over time, the value of 1 exaWETH is intended to become worth more than 1 ETH as it continuously accumulates interest paid by borrowers. When a user withdraws their assets, they receive their original deposit plus the interest earned during the period they held the token.

The most direct way to obtain exaWETH is by supplying WETH to the Exactly Protocol through its official decentralized application. Upon depositing, the protocol mints the corresponding amount of exaWETH to the user's wallet. Additionally, exaWETH may be available on certain decentralized exchanges on the Optimism network, where it can be found in various liquidity pairs.

The Exactly Protocol has undergone multiple security evaluations. Following a historical security incident, the team implemented a vulnerability fix and introduced a Security Hub and a feature to revoke allowances. The protocol's core contracts and underlying mechanisms have been audited by several independent firms, including ABDK, ChainSafe, and Coinspect. Furthermore, the economic model was reviewed by Cryptecon to ensure the stability of the yield-bearing system.

Yield is generated by borrowers who pay interest to take out loans against their own collateral. exaWETH holders benefit from a Variable Rate Pool that supplies liquidity to various fixed-rate markets. Regarding risk, holding or staking exaWETH to earn interest does not carry a liquidation risk. Liquidation only occurs if a user utilizes their exaWETH as collateral to borrow other assets and their account's health factor falls below the required limit.

While similar to receipt tokens from other major lending protocols, exaWETH is unique because it is part of a system that enables fixed-rate borrowing and lending without a custom Automated Market Maker (AMM). It uses a utilization-based model across different maturity dates. Additionally, the EXA governance token allows holders to vote on interest rate models and collateral types, which directly influences the management and yield outcomes for the exaWETH ecosystem.