Most people will think that tETH is just another staking token when they first hear about the product @Treehouse Official . But in fact, tETH is completely different from regular LSTs.
The logic of regular LSTs (like stETH) is: you stake ETH, get a token in return, and enjoy staking rewards. However, tETH adds a layer of "smart yield enhancement" on top of this. It automatically deploys arbitrage strategies to capture the income from the difference in interest rates on-chain, and then packages it into the yield of tETH.
In other words, tETH is the "advanced version" of ETH: not only can you earn the original staking interest, but you can also gain additional stable spread income. Moreover, tETH does not sacrifice flexibility; you can still operate freely in DeFi protocols, such as collateral lending and providing liquidity.
This is why I believe tETH will be a key piece in the future of DeFi fixed income.
