# Equity Hyper-Staked Token (eHST)
An eHST holder stands to earn much higher yields but also has to undertake a higher risk. The reason behind such higher reward and risk is explained below, with the help of an illustration.
Inside every MSP is a Liquidity Enhancing Pool (LEP). This LEP serves as a reserve against yield shocks in the market when the returns on the underlying assets contained in the pool fall. Consider the example shown in the next section.
As seen in the illustration above, sHST holders are guaranteed an annual rate of return of 6%. In a period of 12 months, there will likely be certain months where the underlying assets will outperform and generate yields higher than 6%. Similarly, there will also be cases when they underperform and generate yields lower than 6%. The LEP exists to ensure that sHST holders receive the guaranteed 6% by absorbing losses in the underperforming months. Similarly, in the outperforming months, where the yield generated is more than 6%, the excess yield is stored in the LEP. At the end of 12 months, the eHST holders are entitled to all of the excess yield stored in the LEP. Therefore, as the name suggests, eHST holders receive ownership of the pool’s entire excess yield.\
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Considering that many users will be interested in earning higher yields and being eHST holders, Arithmic will only allow the most active users to be eligible for this token. Here, active users refer to users who regularly interact with the Arithmic ecosystem, participate in community events and interact with Arithmic dApps. Such participation is measured in points and only users who have points above a certain threshold will be eligible to hold eHST. If a user does not meet the cutoff, they are still eligible to participate in the MSP but will be assigned sHST by default. In every pool, we intend to keep the distribution of eHST to sHST at 1:4. Therefore, for every 100 users participating in a pool, 20 will be eHST holders and 80 will be sHST holders. The scenario below illustrates what this distribution implies for different token holders in terms of yield rates.
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