8.2x cbETH:ETH Auto-Compounder - Compound

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🛠️ Strategy Builder Link

Description

This vault creates 8.2x leveraged cbETH:ETH position that earns 1x cbETH liquid staking yields plus an additional 7.2x interest differential between cbETH yields + COMP rewards and WETH borrow costs.

Deposited cbETH is supplied to Compound enabling the strategy to borrow WETH which is then swapped for more cbETH. This process is repeated to get up to 8.2x leverage which provides a 2.5% liquidation buffer.

+ cbETH liquid staking yields

+ COMP borrow rewards

- ETH borrow interest

Strategy

https://studio.factor.fi/?hash=0x6ec39d4a8969d92c0e691baccd4ac7d25c61d457f84b475c706f8a1a7b11132c

Main strategy

1. Claim all COMP rewards

2. Swap COMP → cbETH

3. Flash loan 7.2x the $cbETH amount (deposits plus rewards)

4. Lend all $cbETH - Compound

5. Borrow $ETH to cover flash loan

6. Swap borrowed $ETH → $cbETH

Exit Strategy

Protocol Parameters

Compound

• 0.28% COMP Borrow Rewards

• ~2.37% WETH Borrow Interest

• 88% cbETH Max LTV

Coinbase

OpenOcean

Strategy Performance Conditions

Profit

• cbETH continuously increases in value vs WETH.

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

Loss

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/1kd49sUMJDpyLJbfcsxTlvWb70yQ1WgBoxi5VZfyKvf4/edit?usp=sharing

Estimated Returns

https://docs.google.com/spreadsheets/d/17M1vigyilyLs-DlAqLCG2-Q9DtOTP2Bd7BlnaV38k04/edit?usp=sharing