The Yield Distributors

The multi-chain nature of BTC staking significantly complicates the yield distribution process. Users' potential returns not only include rewards from the staking protocol but also additional incentives from LST Issuers. These rewards may originate from the BTC mainnet, tokens on EVM networks, or even tokens from the Cosmos ecosystem (e.g., Babylon). Furthermore, the timing and methods of yield distribution vary: some returns are reflected in the price of LSTs, others require an additional claim process, and some are issued in the form of points that can only be redeemed after a certain period.

Typically, LST Issuers serve as the primary yield distributors for users. However, with this growing complexity, the role of yield distributors has diversified, and many third parties can now participate in the process. This includes entities responsible for converting rewards into BTC, turning points into tokens and facilitating their claim, and even yield derivative market providers. These various entities all contribute to the broader role of Yield Distributors.