Liquid assets are yield-bearing tokens, meaning their value can increase over time as yield accrues. Unlike their underlying tokens, Liquid assets do not maintain a fixed 1:1 conversion rate.
What is the difference between Liquid assets and their underlying tokens?
Liquid assets are yield-bearing tokens that represent your share of a vault. Their value relative to the underlying tokens can change as the vault earns yield.
Each Liquid asset has a corresponding underlying token. Some examples include:
Liquid asset | Underlying token |
LiquidEUR | EURC |
LiquidUSD | USDC |
LiquidETH | WETH |
LiquidBTC | eBTC |
For example, 1 LiquidEUR does not necessarily equal 1 EURC, just as 1 LiquidUSD does not necessarily equal 1 USDC.
How do Liquid assets earn yield?
Liquid assets are non-rebasing tokens. This means the number of Liquid tokens you hold does not automatically increase when yield is earned.
Instead, accrued yield is reflected in the value of each Liquid token.
For example:
You hold 100 LiquidEUR tokens.
The vault earns yield over time.
You still hold 100 LiquidEUR tokens.
However, those tokens may now be worth more EURC than before.
These figures are illustrative.
The same principle applies to LiquidUSD, LiquidETH, and LiquidBTC.
Why is the amount of Liquid tokens different from the amount I deposit or withdraw?
Liquid assets and their underlying tokens have different token values.
When you deposit or withdraw Liquid assets, the amount of tokens you receive depends on the vault's current conversion rate.
For example, if 1 LiquidEUR is worth 1.0255 EURC, withdrawing 100 LiquidEUR would give you 102.55 EURC, before any applicable fees.
Receiving fewer Liquid tokens when depositing, or more underlying tokens when withdrawing, is due to the applicable vault conversion rate and does not necessarily mean you've lost or gained funds from the conversion itself.
How do I check the value of my Liquid assets?
The value of your Liquid assets depends on the current vault conversion rate, not just the number of tokens you hold.
You can view your Liquid positions in the ether.fi app here:
To receive your underlying tokens, you'll need to withdraw your Liquid assets from the vault. The amount you receive is calculated using the applicable conversion rate at the time of withdrawal.
You can view the current conversion rates on the corresponding Liquid asset pages in the ether.fi app.
For example, you can check the LiquidEUR conversion rate here: