# Amplified cbETH Yields On cbBTC Lend - Aave

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x96BdCd124782f2A7B310F28fB5a3cBe3f66897d5)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a)
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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%2FSgPPF4a9ypRzEKYbcMCN%2FAmplified%20cbETH%20Yields%20On%20cbBTC%20Lend.jpeg?alt=media&#x26;token=7e279a13-53c1-43aa-855b-89a15104c45c" alt=""><figcaption></figcaption></figure>

The vault collateralizes cbBTC on Aave to earn amplified interest differentials on borrowed ETH.

By collateralizing the cbBTC deposit, the vault is able to borrow ETH with a 20% liquidation buffer while earning a minor cbBTC supply interest.

Borrowed ETH is swapped for cbETH to create a 3.5x leveraged cbETH:ETH position on Aave that earns amplified interest differentials between cbETH liquid staking yields and ETH borrow costs.

\+ cbBTC supply interest

\+ cbETH liquid staking yields

\- ETH borrow interest

## Strategy

<figure><img src="https://1496012388-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSEwRza4r80hmJsISwKFf%2Fuploads%2Fi6q2BlOhagsqZgvY5S9D%2Fimage.png?alt=media&#x26;token=ee40e54f-293b-4f29-91c7-99f86fc32b8c" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a">https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a</a></p></figcaption></figure>

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

1. Lend $cbBTC - Aave
2. Borrow $ETH
   1. 60.83% deposit for 20% buffer against LTV
3. Flash loan 2.5x the borrowed $ETH amount
   1. 5% buffer from LTV
4. Swap all $ETH → $cbETH
5. Lend all $cbETH - Aave
6. Borrow $ETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $cbETH collateral - Aave
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $cbBTC collateral - Aave
7. Withdraw $cbBTC
   {% 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.
{% endhint %}

## Protocol Parameters

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

* [\~0.21% ](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3)USDC Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [73%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbBTC Max LTV
* [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
* cbBTC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

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

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/11fCowOqo8Q5hebFpyqdZg7F3_f6dz4z3mc-YUGRLXU8/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/11fCowOqo8Q5hebFpyqdZg7F3_f6dz4z3mc-YUGRLXU8/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1F24QvyHyp58FnN6ZCtfW51fzOza0apK5pRvkJaBLFB4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1F24QvyHyp58FnN6ZCtfW51fzOza0apK5pRvkJaBLFB4/edit?usp=sharing>
{% endembed %}