Additional Liquid Staked ETH Yields On USDC Lend
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Description
This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH liquid staking yields.
By swapping borrowed ETH for cbETH & wstETH, this strategy earns the the difference between cbETH/wstETH liquid staking yields and ETH borrow interest. Liquid staking yields accrues natively to the liquid staked token and is reflected in cbETH/wstETH price always appreciating against ETH.
+ USDC Lending Interest
+ cbETH Liquid Staking Yields
+ wstETH Liquid Staking Yields
- ETH Borrow Interest
Strategy
Lend all $USDC - Aave
Borrow $WETH
62.5% of collateral value for 20% buffer
Swap 50% $WETH → $cbETH
Swap 50% $WETH → $wstETH
Swap $cbETH → $WETH
Swap $wstETH → $WETH
Repay $WETH debt - Aave
Withdraw $USDC collateral
Close remaining debt
Swap all to withdraw token
Protocol Parameters
Strategy Performance Conditions
cbETH/wstETH continuously increases in value vs WETH.
WETH borrow cost is less than cbETH/wstETH liquid staking yields.
USDC supply interest is greater than the interest differentials between cbETH/wstETH yield and WETH borrow.
cbETH/wstETH depegs from ETH.
cbETH/wstETH liquid staking yields falls below WETH borrow costs.
Calculation Template
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Estimated Returns
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