Leveraged Staking Yields

Overview

Gain leveraged staking yield exposure by borrowing against your staking tokens. By borrowing base tokens against your yield-bearing tokens, you get safe access to leveraged staking yields.

Potential Alpha

• Staking Yield Amplification: Earn multiple of your initial staking token yield amount as long as the average staking yield is greater than the incurred debt.

• Decreasing Debt Burden: Lend yield bearing staking tokens and borrow base tokens to open a position where collateral value is always rising relative to debt.

• Earn Additional Interest: In addition from your staking token growing in value, you will also receive lending pool supply interest by charging borrowers of your tokens a borrow interest.

Strategy Building Blocks

The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.

Flash Loan

• Flash loan an intermediary token.

• The amount that you can flash loan will be dependent on the maximum collateralization ratio for your selected lending pool (i.e. $\text{collatRatio}=\frac{value_\text{flashLoan}}{value_\text{initiaclCollateral}+value_\text{flashLoan}}$ ).

Swap

• Swap the flash loaned token for staking tokens.

Lend

• Lend all available staking tokens to the target lending market.

Borrow

• Borrow the flash loan debt amount denominated in underlying token. This ensures that your asset value is always increasing relative to debt.

Swap

• Swap the acquired debt tokens for the flash loan token.

• The flash loan debt will be automatically deducted from your strategy.

Example