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  • Description
  • Strategy
  • Protocol Parameters
  • Strategy Performance Conditions
  • Calculation Template
  • Estimated Returns

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  1. Factor Discover
  2. Factor Operated Strategies
  3. Yield Type Strategies
  4. Arbitrum (ChainID: 42161)

Additional Liquid Restaked ETH Yields On USDC Lend

PreviousAdditional Liquid Staked ETH Yields On USDC LendNextDiversified USDC Lending Yields - Aave & Compound

Last updated 29 days ago

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

Visit Studio to copy/fork and tweak this strategy!

Description

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

  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

  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.

Protocol Parameters

  • 0.1% Max Slippage Config

Strategy Performance Conditions

  • 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.

  • 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.

Estimated Returns

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

USDC Supply Interest

WETH Borrow Interest

USDC Max LTV

weETH Liquid Staking Yields

ezETH Liquid Restaking Yields

rsETH Liquid Restaking Yields

⚙️
Exit Strategy explainer
~6%
~2.4%
75%
~3.7%
~4.1%
~4.1%
➡️
➡️
Strategy Link
Strategy Builder Link
https://docs.google.com/spreadsheets/d/1eKXSSeIpV7GUMS9I4-3LVq8M78HvDSXutfAwxlX31Ho/edit?usp=sharing
https://docs.google.com/spreadsheets/d/1DPuJzHnpyTe2EfBr10ZehHpcaLQhJq8wH3Ea9kBcr10/edit?usp=sharing
https://studio.factor.fi/?hash=0x1d711d4ec0159a6f9a678c85517df63805a01970707157e880e2c11b8e5aa282