3.5x Leveraged cbETH:ETH Yields - Aave
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Description
This vault creates 3.5x leveraged cbETH:ETH position that earns 1x cbETH liquid staking yields plus an additional 2.5x interest differential between cbETH yields and WETH borrow costs.
Deposited cbETH is supplied to Aave enabling the strategy to borrow WETH which is then swapped for more cbETH. This process is repeated to get up to 3.5x leverage which provides a 5% liquidation buffer.
+ cbETH liquid staking yields
- ETH borrow interest
Strategy
Flash loan 2.5x the deposited $cbETH amount
Lend all $cbETH - Aave
Borrow $ETH to cover flash loan
Swap borrowed $ETH → $cbETH
Protocol Parameters
Strategy Performance Conditions
cbETH continuously increases in value vs WETH.
WETH borrow cost is less than cbETH liquid staking yields across Aave
Calculation Template
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Estimated Returns
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