yETHPrice

(YETH)

Yearn Finance's yETH is a yVault strategy within the Yearn.finance ecosystem, functioning as a 'robo-advisor' for DeFi. It optimizes yield for deposited Ethereum (ETH) by automatically deploying it into various yield farming strategies. For instance, it might lock ETH in protocols like MakerDAO to generate DAI, then use that DAI in other strategies to ultimately buy more ETH for the user. It can also be understood as a community-governed index token, backed 1:1 by staked ETH, where staking rewards primarily accrue to Staked yETH (st-yETH) holders.

Significant smart contract risk is a primary concern due to the composability Yearn leverages across various projects, including potential vulnerabilities within contracts like MakerDAO, the yDAI vault, CRV, and the Ethereum blockchain itself. Additionally, users are exposed to stablecoin risks (e.g., USDT/USDC/TUSD) if yDAI utilizes strategies involving these assets. Liquidation risk is also present, particularly when ETH is used as collateral in lending protocols such as MakerDAO CDPs, where market volatility could trigger liquidations of collateralized debt positions.

Yes, a legacy yETH product suffered an exploit in late 2025. An attacker successfully exploited a flaw in the minting logic, allowing them to mint an excessive amount of yETH tokens. These fraudulently minted tokens were then swapped for other real assets, resulting in significant financial losses. However, Yearn Finance confirmed that its main V2 and V3 vaults, which represent the current iterations of their primary strategies, were not affected by this particular incident. This distinction is crucial for understanding the scope of the exploit.

The Roundhill Ether Covered Call Strategy ETF (YETH) is an actively managed Exchange Traded Fund launched on September 4, 2024. Its core objective is to generate current income and offer exposure to Ether with capped gains. It achieves this through a synthetic covered call strategy, utilizing European-style FLEX options. Specifically, YETH sells weekly FLEX call options on Ether ETFs to generate premium income and employs a combination of long call and short put options to synthetically replicate a long position on Ether ETFs, thereby providing indirect Ether exposure.

No, the Roundhill YETH ETF does not invest directly in Ether (ETH) tokens itself, nor does it seek direct exposure to the spot price of Ether. Instead, its investment strategy is designed to provide exposure to the price return of other exchange-traded funds that principally invest in Ether futures contracts. This means investors in YETH are indirectly exposed to Ether's price movements through derivatives and other financial instruments, rather than holding actual Ether in the fund.

Key risks include capped upside potential, meaning investors may miss out on significant gains during strong Ether bull markets due to the covered call strategy. Distributions can be treated as a return of capital, which, while initially tax-efficient, reduces cost basis and could lead to higher capital gains taxes later. The ETF may underperform direct Ether exposure in bullish trends. Counterparty risk exists due to reliance on synthetic instruments, and management risk is present as it's an actively managed fund. Additionally, YETH carries a relatively high spread risk.