Staking with Peapods Finance
Ethy has partnered with Peapods Finance to give $ETHY holders a way to earn yield while staking. Instead of inflationary emissions, Peapods generates organic yield by treating volatility and trading activity as a resource.
How Yield is Generated
When you stake $ETHY into a Pod, your tokens are wrapped into a synthetic version called pETHY. This wrapped asset captures yield through protocol mechanics such as:
Wrapping/Unwrapping Fees – collected when users convert between ETHY and pETHY.
Trading Activity Fees – paid by traders in pETHY AMM pools.
Arbitrage Loops – when the market price of pETHY diverges from its redemption value, arbitrageurs capture the difference, driving revenue back into the system.
Volatility Farming (VF) – yield increases during volatile markets as more arbitrage and trading occurs.
Leveraged Volatility Farming (LVF) – amplifies liquidity positions, increasing fee generation.
These mechanisms create a self-sustaining incentive model: the more market activity, volatility, and usage, the more yield the Pod generates for depositors. No inflationary rewards are needed.
Step-by-Step
Go to Peapods Finance and connect your wallet.
Search for or select the ETHY Pod on Base or Ethereum or navigate directly to Ethy's pod page
Click on "Farm Volatility" in the main Pod view
Set the marked toggle to "Just Wrap"
Approve and wrap into pETHY
Enjoy your double-digit yield!
How it Works
Wrap $ETHY → pETHY
When you deposit $ETHY into a Pod, you mint pETHY (minus wrap fees). pETHY is fully backed by the underlying $ETHY in the Pod.
pETHY Price Appreciation
Over time, the value of each pETHY increases relative to $ETHY.
This happens because protocol fees (wrapping/unwrapping, trading, arbitrage) are used to burn pETHY supply while the $ETHY collateral stays intact.
As a result, each pETHY is redeemable for a larger share of $ETHY over time, known as the rising Collateral Backing Ratio (CBR).
Yield Distribution
Yield is created by real activity inside the Peapods system:
Wrap / unwrap fees
AMM buy/sell fees
Arbitrage flows correcting price imbalances
Liquidity provision fees in paired pools
All of these fees are recycled into the Pod to benefit participants, making the yield organic and non-inflationary.
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