> ## Documentation Index
> Fetch the complete documentation index at: https://docs.royco.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Royco ETH (roywstETH)

> roywstETH lets wstETH holders earn Royco yield on top of staking rewards by borrowing USDC against their wstETH and deploying into srRoyUSDC.

The vault posts deposited wstETH as collateral to a lending venue, borrows USDC against it, and deploys that USDC into srRoyUSDC to earn the Senior tranche yield. Returns come from two sources: the underlying stETH staking reward plus the spread between the Senior tranche yield and the borrow cost. Dialectic manages the vault, handling collateral management, borrowing, and rebalancing across market conditions. Carry vault depositors are exposed to collateral liquidation risk if ETH price declines significantly relative to the outstanding borrow position.

Vault performance is variable and depends on underlying market conditions, borrow costs, and yield source performance. Past performance is not indicative of future results. All depositors should review Section 6 (Risk Framework) before participating.

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*This document is provided for informational purposes only and does not constitute investment advice, a solicitation, or an offer to sell any securities or financial instruments. Participation in Royco products involves risk, including the potential loss of all capital deployed. Prospective participants should conduct their own independent due diligence and consult with qualified legal, financial, and tax advisors before making any investment decisions.*