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  • Description
  • Strategy
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  • Calculation Template
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  1. Factor Discover
  2. Factor Operated Strategies
  3. Trading Type Strategies

WBTC Base Switch On rETH For ETH & USDC Yields

PreviousTrading Type StrategiesNextDelta Neutral Type Strategies

Last updated 29 days ago

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Visit Discover to deposit into this strategy and automate your yields!

Description

An ETH rotation play which earns USD yields on rETH by switching the base asset from USD → WBTC. This strategy profits when ETH outperforms WBTC and is profitable as long as the generated USDC lending interest is greater than rETH to WBTC underperformance.

+ USDC Lending Interest

+ rETH Liquid Staking Yields

+ rETH Lending Interest

- WBTC Borrow Interest

Strategy

  1. Flash loan $rETH equivalent to 100% USDC value

  2. Lend $rETH - Aave

  3. Lend $USDC - Aave

  4. Borrow $WBTC

    1. 100% of initial $USD value

  5. Swap all $WBTC → $rETH

  1. Close remaining debt

  2. Swap all to withdraw token

Exit Strategy

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Protocol Parameters

  • 0.1% Max Slippage Config

Strategy Performance Conditions

  • WETH, and by extension rETH, outperforms WBTC for the period of the deposit.

  • USDC supply interest and rETH liquid staking yields are greater than WBTC borrow costs.

  • WBTC outperforms WETH.

  • rETH depegs from ETH.

Calculation Template

Create Your Own Strategies!

Create a copy of the sheet below and tweak it to create your own personalized strategy.

Estimate Returns

The profitability of this strategy depends on the performance of ETH relative to WBTC. Aside from potential trading returns, the strategy also earns a net yield of ~6.7% (as of 06/03/25) that comprises of:

  • USDC lending interest

  • rETH liquid staking yields

  • WBTC borrow costs

Visit our to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.

USDC Supply Interest

rETH Supply Interest

WBTC Borrow Interest

USDC Max LTV

rETH Max LTV

rETH Liquid Staking Yields

⚙️
Exit Strategy explainer
~6%
~0.02%
~0.3%
75%
69%
~2.7%
➡️
Strategy Link
https://docs.google.com/spreadsheets/d/1FvNDdfvoec_mQCiDzIPjEGrJWM652I1S2fWFMlK83qE/edit?usp=sharing
https://studio.factor.fi/?hash=0xb53572bd4b8e3a597bfb7589faec5828432da28cfd9e16de9cd93097c7ce35ab