7.1x wstETH:ETH Auto-Compounder - Compound

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🛠️ Strategy Builder Link

Description

This vault creates 7.1x leveraged wstETH:ETH position that earns 1x wstETH liquid staking yields plus an additional 6.1x interest differential between wdtETH yields and WETH borrow costs.

Deposited wstETH is supplied to Compound enabling the strategy to borrow WETH which is then swapped for more wstETH. This process is repeated to get up to 7.1x leverage which provides a 2.5% liquidation buffer.

+ wstETH liquid staking yields

+ COMP borrow rewards

- ETH borrow interest

Strategy

Main strategy

1. Claim all COMP rewards

2. Swap COMP → wstETH

3. Flash loan 6.1x the $wstETH amount (deposits plus rewards)

4. Lend all $wstETH - Compound

5. Borrow $ETH to cover flash loan

6. Swap borrowed $ETH → $wstETH

Exit Strategy

1. Flash loan $ETH

2. Repay $ETH debt - Compound

3. Withdraw $wstETH collateral - Compound

4. Swap $wstETH → $ETH

Protocol Parameters

Compound

• 0.41% COMP Borrow Rewards

• ~2.3% WETH Borrow Interest

• 88% wstETH Max LTV

Lido

• ~2.6% wstETH Liquid Staking Yield

OpenOcean

• 0.1% Max Slippage Config

Strategy Performance Conditions

Profit

• wstETH continuously increases in value vs WETH.

• WETH borrow cost is less than wstETH liquid staking yields plus COMP rewards

Loss

• wstETH depegs from ETH.

• wstETH liquid staking 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/1EvGaQUkjT2ii665pMIWHKKMwL-6aepkKcezswitJEjU/edit?usp=sharing

Estimated Returns

https://docs.google.com/spreadsheets/d/19zQ5sSqL81xaurh-m2iKc2DHLU5_gADJNmBKkijrb4k/edit?usp=sharing