What is REETH?
It is an Ethereum based rebasing token with a price target of ETH
REETH (Rebasing Ethereum) is a rebasing token, designed to target the price of Ethereum with daily rebases. It has a simple redemption system that rewards users with REETH when they use our integrated DEX aggregator exchange and/or provide ETH/REETH liquidity to Sushiswap.
The rebase mechanism is regulating the REETH supply by expanding or contracting the supply according to the daily REETH price, and thereby pushes REETH to it's target price over time. But also the stabilization system is an important part of the REETH ecosystem, it further stabilizes the REETH price with stability-swaps by following the market swings via a rebase trading algorithm. The hereby gained ETH collateral is collected in the wrapper contract and is used to support the price of REETH when in contraction.
Stabilize Protocol development team did not hold any REETH at launch, 100% of the initial REETH supply of 67 REETH was owned by users. The buyback treasury, which is filled by trade fees from the integrated dex aggregator, purchases REETH from the market. This is the only way how Stabilize Protocol development team gets into possession of REETH.
REETH supply is controlled by its monetary policy. Calling rebase on the policy can cause supply changes to the token. Every day after 12:00 UTC, anyone can trigger the daily rebase in the contract and earn REETH for the gas used during the call up to 110% of the cost. Users can delegate where this ETH spent goes in case they want to use bots to call the function.