🟪Leveraged LRT Strategy

Restaking & LRT Overview

The launch of Thetanuts Finance's Leveraged LRT Strategy Vaults marks first foray into restaking and LRTs, a core DeFi primitive with >$10bn in TVL today.

Restaking is a new primitive introduced by EigenLayer, and is one of the fastest growing sectors in DeFi today – with $7.7bn in TVL. Restaking enables staked $ETH to be used to secure other networks, in exchange for additional restaking yields. To participate in restaking – users either restake directly on the EigenLayer app, or use a liquid restaking protocol.

Users that participate in liquid restaking protocols generate a Liquid Restaking Token (“LRT”), while also accessing multiple sources of yield – including EigenLayer Points, Protocol Points (i.e. EtherFi Loyalty Points), aditional yield from using LRTs in DeFi (i.e. on Pendle).

Pendle Finance's PT & YT Tokens

Pendle is a yield-focused DeFi protocol that seeks to take LRT yields one step further, by allowing users to split LRTs into PT and YT assets. For EtherFi's $eETH, $eETH can be split into $PT-eETH and $YT-eETH.

$PT-eETH: Foregoes $eETH yields and points for a fixed yield, and is redeemable for 1 $eETH at maturity. $PT-eETH currently trades at a ~25% fixed APY.

$YT-eETH: Leveraged exposure to $eETH yields and points streamed to holders perpetually until maturity. YT decays to no value at maturity. $YT-eETH currently accrues 25x EtherFi points, and 15x EigenLayer points.

Thetanuts Finance Leveraged LRT Strategy Vaults

With our mission to bring decentralized on-chain altcoin options to users, Thetanuts Finance will be first integrating Pendle’s $PT-eETH to create a Leveraged LRT Strategy Vault on Ethereum Mainnet.

• On the Thetanuts Finance user interface, a user will “Zap” their $PT-eETH.

• $PT-eETH is deposited into the Thetanuts Finance v3 Lending Market, and $ETH is borrowed.

• $ETH is deposited into the $ETH-C Basic Vault, generating additional Basic Vault Option Premiums.

Our Leveraged LRT Vault allows $PT-eETH to generate additional sources of yield – where $PT-eETH would have otherwise not had any additional use cases, aside from waiting for maturity.

With the Leveraged LRT Strategy Vault, users will now be able to generate up to 3 further sources of yield: Pendle $PT-eETH Fixed Yield, Thetanuts Finance $ETH-C Basic Vault Option Premiums, and $NUTS Rewards.