4.4x cbETH Carry + 1x USDC Lending Yields - Aave & Compound

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

📥 Strategy Deposit Link

Visit Studio to copy/fork and tweak this strategy!

🛠️ Strategy Builder Link

Description

This strategy earns blended USDC and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDC into Aave, this strategy earns 1x the Aave USDC lending interest. This also allows the strategy to borrow WETH against the USDC collateral with a 20% buffer.

Borrowed WETH from Aave is swapped for cbETH earning the interest differentials between cbETH liquid staking yields and Aave WETH borrow interest.

The cbETH is then used to create a 7x leveraged cbETH:ETH position (5% liquidation buffer) which earns an additional 6x interest differential between cbETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

Strategy Flow

Strategy Performance Conditions

Profit

• cbETH continuously increases in value vs WETH.

• WETH borrow cost is less than cbETH liquid staking yields across Aave and Compound (including COMP rewards).

• USDC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.

Loss

Where Does The Yields Come From?

Strategy Exposure

Comparison

Factor Studio Strategy

https://studio.factor.fi/?hash=0x33a2fed41dc907e7ce318146fa87b2a52d1c1b561caeae534df6734d0cbf14ec

Main strategy

1. Lend $USDC - Aave

2. Borrow $ETH

   1. 62.5% deposit for 20% buffer against LTV

3. Swap borrowed $ETH → $cbETH

4. Flash loan 6x the borrowed $cbETH amount

   1. 5% buffer from LTV

5. Lend all $cbETH - Compound

6. Borrow $ETH

7. Swap $ETH to $cbETH to cover flash loan

Exit Strategy

Protocol Parameters

Aave

• ~4.90% USDC Supply Interest

• ~2.40% WETH Borrow Interest

• 75% USDC Max LTV

Compound

Coinbase

OpenOcean

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/1M2JKksrAzUKW5T-DfrevhDrlQzPrMnGl09TxPUqIy8Y/edit?usp=sharing

Estimated Returns

https://docs.google.com/spreadsheets/d/1TO3rTsaLXuBRMq_xb0EBMDCUoLZMVm4mVMSzTD6g1ek/edit?usp=sharing