WBTC Base Switch On rETH For ETH & USDC Yields

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

➡️ Strategy Link

Visit Studio to copy/fork and tweak this strategy!

➡️ Strategy Builder Link

Description

https://studio.factor.fi/?hash=0xb53572bd4b8e3a597bfb7589faec5828432da28cfd9e16de9cd93097c7ce35ab

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

Main 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

Exit Strategy

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.

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

Protocol Parameters

Aave

• ~6% USDC Supply Interest
• ~0.02% rETH Supply Interest
• ~0.3% WBTC Borrow Interest
• 75% USDC Max LTV
• 69% rETH Max LTV

Rocket Pool

• ~2.7% rETH Liquid Staking Yields

OpenOcean

• 0.1% Max Slippage Config

Strategy Performance Conditions

Profit

• 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.

Loss

• 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.

https://docs.google.com/spreadsheets/d/1FvNDdfvoec_mQCiDzIPjEGrJWM652I1S2fWFMlK83qE/edit?usp=sharing

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