Additional Liquid Restaked ETH Yields On USDC Lend

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Description

https://studio.factor.fi/?hash=0x1d711d4ec0159a6f9a678c85517df63805a01970707157e880e2c11b8e5aa282

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH restaking yields.

By swapping borrowed ETH for weETH, ezETH, and rsETH, this strategy earns the the difference between liquid restaking yields and ETH borrow interest. Liquid restaking yields accrues natively to the liquid staked token and is reflected in liquid restaked token price always appreciating against ETH.

+ USDC Lending Interest

+ weETH Liquid Staking Yields

+ ezETH Liquid Staking Yields

+ rsETH Liquid Staking Yields

- ETH Borrow Interest

Strategy

Main strategy

1. Lend all $USDC - Aave

2. Borrow $WETH

   1. 62.5% of collateral value for 20% buffer

3. Swap 33% $WETH → $weETH

4. Swap 33% $WETH → $ezETH

5. Swap 33% $WETH → $rsETH

Exit Strategy

1. Swap all $weETH → $WETH

2. Swap all $ezETH → $WETH

3. Swap all $rsETH → $WETH

4. Repay $WETH debt - Aave

5. Withdraw $USDC collateral

6. Close remaining debt

7. 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

• ~2.4% WETH Borrow Interest

• 75% USDC Max LTV

Ether.fi

• ~3.7% weETH Liquid Staking Yields

Renzo

• ~4.1% ezETH Liquid Restaking Yields

Kelp

• ~4.1% rsETH Liquid Restaking Yields

OpenOcean

• 0.1% Max Slippage Config

Strategy Performance Conditions

Profit

• weETH/ezETH/rsETH continuously increases in value vs WETH.

• WETH borrow cost is less than weETH/ezETH/rsETH liquid restaking yields.

• USDC supply interest is greater than the interest differentials between weETH/ezETH/rsETH yield and WETH borrow.

Loss

• weETH/ezETH/rsETH depegs from ETH.

• weETH/ezETH/rsETH liquid restaking yields falls below WETH borrow costs.

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/1DPuJzHnpyTe2EfBr10ZehHpcaLQhJq8wH3Ea9kBcr10/edit?usp=sharing

Estimated Returns

https://docs.google.com/spreadsheets/d/1eKXSSeIpV7GUMS9I4-3LVq8M78HvDSXutfAwxlX31Ho/edit?usp=sharing