# 3.5x Leveraged cbETH:ETH Yields - Aave

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

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xe63072299f8c84887520AB6b590c447dad5c7B4c)
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{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873)
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## Description

<figure><img src="https://1496012388-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSEwRza4r80hmJsISwKFf%2Fuploads%2FqOR5a8ZRy99ao2y08mVT%2Fimage.png?alt=media&#x26;token=d808cde7-b68c-4d91-b447-693a480c717a" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873">https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873</a></p></figcaption></figure>

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

{% tabs %}
{% tab title="Main strategy" %}

1. Flash loan 2.5x the deposited $cbETH amount
2. Lend all $cbETH - Aave
3. Borrow $ETH to cover flash loan
4. Swap borrowed $ETH → $cbETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $cbETH collateral - Aave
4. Swap $cbETH → $ETH
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](https://docs.factor.fi/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
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## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~0.11%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbETH Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x5979d7b546e38e414f7e9822514be443a4800529\&marketName=proto_arbitrum_v3) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.09%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

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**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
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{% embed url="<https://docs.google.com/spreadsheets/d/1SRg9rk_WcOrDr7x18f3mNVZf2_D7Uw1pMiHASvSnZ-Y/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1SRg9rk_WcOrDr7x18f3mNVZf2_D7Uw1pMiHASvSnZ-Y/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/11pOG2i3EUpRau5XJcDa9lL1FxGJSjYqhD6QUSON8Ja4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/11pOG2i3EUpRau5XJcDa9lL1FxGJSjYqhD6QUSON8Ja4/edit?usp=sharing>
{% endembed %}