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create a new page for the Yield Bridge - #3500

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yield-bridge
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create a new page for the Yield Bridge#3500
0xallan wants to merge 9 commits into
masterfrom
yield-bridge

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@0xallan

@0xallan 0xallan commented Jul 31, 2026

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Description

Adding a new page for the Yield Bridge, a new kind of bridge that allows chain operators to earn yield on the assets locked in the bridge on the parent chain.

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Project Deployment Actions Updated (UTC)
arbitrum-docs Ready Ready Preview Aug 7, 2026 12:38pm

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[copilot] Clarified the roles and responsibilities of the chain operator and added details about deposit entrypoints and yield distribution mechanisms.
Comment thread docs/launch-arbitrum-chain/deploy/yield-bridge.mdx Outdated

**Withdrawing to the parent chain.** The child chain gateway burns the token and sends a <a data-quicklook-from="l2-to-l1-message">child-to-parent message</a> exactly as it does for a canonical bridge. When that message executes, the parent chain gateway delivers `MasterVault` shares to the recipient rather than the underlying asset. The recipient then calls `redeem` on the vault to exchange those shares for the asset, optionally specifying a minimum amount to receive. Redemption is permissionless and available at any time: the vault pays from its idle balance and withdraws from the sub-vault to cover any shortfall.

**Rebalancing.** Deposits and withdrawals do not move capital in or out of the sub-vault. A keeper, appointed by the chain operator or a delegated vault manager, calls `rebalance` to bring the idle balance back to its target, which is the primary operation that moves capital into or out of the sub-vault. Each call passes a minimum exchange rate, which bounds how much the sub-vault's share price may move against the vault while the transaction is in flight.

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Deposits never move capital into the sub-vault, and rebalancing is the only operation that does. Withdrawals pull from the sub-vault only to cover a shortfall in the idle balance.

Clarified description of MasterVault's role and structure.
Comment thread docs/launch-arbitrum-chain/deploy/yield-bridge.mdx Outdated

## Deposit and withdrawal flow

**Depositing from the parent chain.** The user calls the gateway router as they would for any bridged token. The gateway pulls the underlying asset from the user, deposits it into that token's `MasterVault`, and holds the shares it receives as escrow. A retryable ticket mints the child chain token to the user. Shares are issued one-for-one with the asset, so the child chain balance matches what the user deposited. The router also exposes a deposit entrypoint that takes a minimum amount to be received on the child chain and reverts if the vault would issue fewer shares than that. This is useful when the vault may be carrying a loss.

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Suggested change
**Depositing from the parent chain.** The user calls the gateway router as they would for any bridged token. The gateway pulls the underlying asset from the user, deposits it into that token's `MasterVault`, and holds the shares it receives as escrow. A retryable ticket mints the child chain token to the user. Shares are issued one-for-one with the asset, so the child chain balance matches what the user deposited. The router also exposes a deposit entrypoint that takes a minimum amount to be received on the child chain and reverts if the vault would issue fewer shares than that. This is useful when the vault may be carrying a loss.
**Depositing from the parent chain.** The user calls the gateway router as they would for any bridged token. The gateway pulls the underlying asset from the user, deposits it into that token's `MasterVault`, and holds the shares it receives as escrow. A retryable ticket mints child chain tokens to the user 1 for 1 with `MasterVault` shares. Unless the `MasterVault` has suffered losses, shares are issued one-for-one with the asset, so the child chain balance matches what the user deposited. The router also exposes a deposit entrypoint that takes a minimum amount to be received on the child chain and reverts if the vault would issue fewer shares than that. This is useful when the vault may be carrying a loss, because the exchange rate can change in that situation.

i think my suggested wording isn't very good, but basically wanted to make the fact that L2 token is 1 to 1 with MV shares, and MV shares are usually 1-1 with asset. the slippage tolerance is useful when MV is trading at less than 1 asset, and it suddenly spikes in value before the user lands their deposit

Co-authored-by: Henry <11198460+godzillaba@users.noreply.github.com>
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