YB
YB is the yield side of the Tapir split. Holding YB means you are betting that the peg holds. In return for absorbing the depeg risk, YB typically trades at a discount — you get more YB per base token — which translates to a boosted yield compared to simply holding the base asset.
Key properties
Full name
Yield Bearer
Minted via
Splitting base asset (1 base = 0.5 DP + 0.5 YB)
Value range
100% (no depeg) down to 0% (severe depeg)
Tradeable
Yes, on the Tapir AMM during the Active stage
ERC-20
Yes, fully transferable
How YB loses value
YB is the complement to DP. When a depeg occurs, value transfers from YB holders to DP holders. The formula is:
This relationship ensures the conservation of value invariant is always maintained: dpValue + ybValue = 200%.
In practical terms:
No depeg: YB redeems at 100% — you get your full amount back, plus you benefit from any yield-boosted return from buying YB at a discount.
Small depeg (5%): YB drops to approximately 94.74%.
Medium depeg (20%): YB drops to 75%.
Severe depeg (50%+): YB drops to 0% — total loss.
Payoff curve
YB's payoff is the mirror image of DP's. It starts at 100% and declines linearly toward 0% as the depeg size increases:
Worked examples
No depeg
You split 10 stETH into 5 DP + 5 YB. The pool resolves with no depeg detected.
DP
5 tokens
100%
5 stETH
YB
5 tokens
100%
5 stETH
Total
10 stETH
You receive exactly what you deposited (minus fees). As a YB holder, you earned the yield boost from purchasing YB at a discount during the Active stage.
5% depeg
YB
5 tokens
94.74%
4.737 stETH
You lose 0.263 stETH relative to your initial 5 YB position. The loss is absorbed to fund DP holders' gains.
20% depeg
YB
5 tokens
75%
3.75 stETH
You lose 1.25 stETH — a 25% loss on the YB portion.
50% depeg (total loss)
YB
5 tokens
0%
0 stETH
Your YB tokens are worthless. The entire value has transferred to DP holders.
The yield boost
YB's primary appeal is the yield boost it offers when no depeg occurs. Here is how it works:
During the Active stage, DP tokens typically trade at a premium (because they offer protection). This means YB tokens trade at a discount — you get more YB per base token than from a simple split.
For example, if the AMM prices 1 base at 1.08 YB:
If the base token yields 4.2% natively, your implied APY as a YB holder is:
The yield boost is funded by the premium that DP buyers pay for protection. In this sense, YB holders are selling depeg protection — they earn a premium for absorbing the risk that DP holders are hedging.
Risk profile
YB carries directional risk — you are exposed to the full downside of a depeg event:
0%
100%
None
5%
94.74%
-5.26%
10%
89.00%
-11.00%
20%
75.00%
-25.00%
30%
58.82%
-41.18%
50%+
0%
-100%
The loss is not linear — it accelerates as the depeg grows larger. This is because the dpValue formula uses inverse proportionality, causing the ybValue to decrease faster for larger depeg events.
Who holds YB?
YB is designed for participants who are confident the peg will hold and want to maximize yield:
Yield farmers seeking boosted returns on stablecoin or LST holdings.
Market makers providing liquidity who want the yield side of their position.
Optimistic traders who believe the probability of a significant depeg is low and want to collect the premium.
Delta-neutral strategists who pair YB with other positions to construct specific risk/reward profiles.
Trading YB on the AMM
During the Active stage, you can buy YB directly with the base asset through the Tapir AMM. The router handles the mechanics:
Your base asset is split into 0.5 DP + 0.5 YB.
The DP side is swapped for additional YB on the AMM.
You receive the combined YB amount.
Because YB typically trades at a discount (you get more than 1 YB per base token), the exchange ratio is greater than 1. This discount is the market's way of pricing in the depeg risk that YB holders absorb.
Redemption
After pool resolution, you redeem YB tokens for the base asset at the resolved ybValue:
Redemption fees (and success fees, if applicable) are deducted from the final amount. In the case of a severe depeg where ybValue = 0, redemption returns nothing.
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