How It Works

Deposit

When a user deposits ETH or WETH, depending on the most profitable route in current market conditions, the strategy either:

• stakes ETH through Lido at a 1:1 rate to receive stETH, or

• swaps ETH to stETH via Curve for a better than 1:1 rate, resulting in an immediate profit.

The stETH is then wrapped to wstETH and deposited as collateral into Aave Prime or Core market using E-Mode to earn a lending yield.

Automation

A fully automated agent continuously monitors the Aave position's Loan-to-Value (LTV) ratio and automatically rebalances it as needed:

• Increase LTV: Borrow WETH against the wstETH collateral, convert that to more wstETH and repeat this loop as many times as necessary (typically around 10 times) to reach the target LTV.

• Decrease LTV: Swap the wstETH collateral atomically to pay off the WETH borrow position.

Under the hood, both actions are executed atomically in a single interaction through smart flashloans. The execution runs through a private relayer network to prevent any MEV extraction.

In this way, the system maintains an optimized target LTV that balances strong yields with safety, accounting for historical stETH/ETH depegs without risking liquidation.

Redeem

Users can redeem their shares at any time. There is no withdrawal fee.

On redemption, wstETH collateral is atomically unwrapped and swapped via Curve to repay the WETH debt proportional to the redeemed share amount. Depending on market conditions, this may result in a swap slippage on the redeemed amount.

To minimize this swap slippage, set the "Max Slippage (%)" to the maximum acceptable total slippage for you. For larger amounts, consider redeeming in smaller steps to reduce slippage.

Pro tip: Benefit from your wallet's transaction simulation - start with a low slippage and raise it until the simulation passes.