If you're a literate in DeFi you know how hard it is to provide concentrated liquidity in a tight range for a yield-bearing asset like sUSDe or wstETH ​ As the price of one asset moves up consistently you will get yield-derived impermanent loss ​ The image below shows how many times you would have to rebalance your LP during the last year if doing ~0.4% range around the price. At 10% underlying APR you'd have to rebalance ~20 times ​ It also means that a lot of the time (at the end of your ranges) a large of your position would be in the non-yield-bearing asset which would give you less base APR And every time you'd have to move the range you'll have a small yield-derive IL, in addition to swap fees for buying back sUSDe to LP in the next range ​ This is difficult for all market participants, and leads to people adding wider LP ranges, which means we get sub-optimal onchain liqudity for many yield bearing assets ​ ✅ Redeemable tokens ​ @Terminal_fi is a DEX that is building a solution for exactly this problem with "Redeemable Tokens". A token that wrap around a yield-bearing token, but peg their value to the non-yield-bearing counterpart ​ The Redeemable Token will gradually inflate in supply in line with the yield-bearing tokens price appreciation ​ This is best explained with an example. ​ Let's say we have sUSDe from @ethena_labs If you deposited 100 sUSDe when price was $1 you'd mint 100 rUSDe. Then price of sUSDe increased to $1.5 You'd be able to claim an additional $50 rUSDe for $150 in total ​ This means that rUSDe would be pegged 1:1 with USDe, but users can burn the rUSDe to get back sUSDe at the current sUSDe:USDe price ​ Because USDe is a non-yield-bearing stablecoin that means rUSDe is also a non-yield-bearing stablecoin ​ Sounds complex? Don't worry, its all abstracted away in the protocol and you as a user never have to see the rUSDe...