Non-Rebasing Receipt Tokens Explained

What Are Non-Rebasing Receipt Tokens?

Non-rebasing receipt tokens are a type of token commonly used in liquid staking and DeFi protocols. When you deposit an asset (like ETH) into a protocol, you receive a receipt token in return. This token represents your claim on the underlying asset and any rewards it accrues.

Non-rebasing means that the number of tokens in your wallet does not change over time. Instead, the value of each token increases relative to the underlying asset as rewards accumulate. This is in contrast to rebasing tokens, where the protocol periodically increases the number of tokens in your wallet to reflect earned rewards, but the value per token remains the same1 4+1.

How Do Non-Rebasing Receipt Tokens Work?

Constant Supply: The total supply of non-rebasing tokens remains fixed unless new deposits or withdrawals occur.
Value Appreciation: As the protocol earns rewards (e.g., staking rewards), the exchange rate between the receipt token and the underlying asset increases. For example, if you hold 1 non-rebasing token, over time it becomes redeemable for more of the underlying asset.
Examples:
- ezETH (Renzo): The exchange rate between ezETH and ETH increases as staking and restaking rewards accumulate.
- mevETH: Designed as a non-rebasing liquid staking token, its value relative to ETH grows as rewards are earned, but your mevETH balance stays the same4.
- stATOM (Stride): 1 stATOM is redeemable for an increasing amount of ATOM as staking rewards accrue5.
- rETH (Rocket Pool): Another prominent non-rebasing liquid staking token1.

Why Use Non-Rebasing Tokens?

DeFi Compatibility: Non-rebasing tokens are easier to integrate with DeFi protocols, as their balances do not change automatically, avoiding issues with accounting and smart contract interactions.
Simplicity: Users can track their holdings more easily, as the number of tokens in their wallet remains constant.
Value Growth: The increase in value is reflected in the exchange rate, not the token count.

Comparison: Rebasing vs. Non-Rebasing

Feature	Rebasing Tokens	Non-Rebasing Tokens
Token Balance Changes	Yes (periodically)	No
Value per Token	Stays the same	Increases over time
DeFi Compatibility	Sometimes problematic	Generally easier
Example	stETH (Lido)	rETH (Rocket Pool), ezETH

Summary

Non-rebasing receipt tokens are a popular design in liquid staking and DeFi. They maintain a constant token balance for users, while the value of each token increases as rewards accrue. This design simplifies DeFi integrations and user experience, making them a preferred choice for many protocols1 4+1.

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