Arithmic’s Multichain Staking Pools (MSP)

On the Arithmic Network, users can deposit ETH, BTC, LSTs, LRTs, ARITH (Arithmic’s native token) and other selected L2 tokens to participate in the yield-earning mechanism. This assimilation of tokens creates a Multichain Staking Pool (MSP). In such a pool, there will be multiple assets with different rates of return but the pooling mechanism not only helps reduce the yield risk of all the included assets but also enables Arithmic to provide a much higher return than the market average.

After a pool is created, the deposits will be used to stake on Arithmic’s own network and restake on EigenLayer (depending on its deposit caps). All these actions generate staking rewards and form the bedrock of this yield-bearing pool. The rewards are then redistributed to the users, subject to certain conditions and according to their deposit size. Additionally, staking rewards will differ according to a user’s style of participation in the pool. The next section elaborates on the different choices users can make according to their risk preferences.