Thetanuts Finance Launches Leveraged LRT Strategy Vault to Enable Greater Composability with Pendle's PT-eETH
Singapore, Singapore, March 14, 2024, Chainwire
Thetanuts Finance, the leading decentralized on-chain options protocol, announced that it has integrated Pendle Finance's $PT-eETH offering to create a leveraged LRT strategy vault on the mainnet.
This marks the protocol's first foray into the world of recovery and liquid recovery tokens (LRT), a fast-growing primitive within the decentralized finance (DeFi) industry that has already amassed over 10 billion dollars in total value locked (TVL).
Accelerated Betting Returns
Recovery provides a way for DeFi users to use their staked $ETH to secure other networks and earn additional performance beyond what they earn through the Ethereum Mainnet. Created by EigenLayer, it offers users the option to redo the operation directly in the native EigenLayer dApp or within a liquid recovery protocol such as EtherFi. By staking their $stETH in liquid recovery protocols, users generate “liquid recovery tokens” or LRTs that can also be leveraged for additional yield elsewhere.
The leading LRT today is EtherFi, which currently has over $2.5 billion in TVL. It allows users to deposit $ETH, $stETH, $bETH or $cbETH to mint an LRT known as $eETH.
By holding $eETH, users can increase their rewards with EigenLayer points and also protocol points such as EtherFi loyalty points. Additionally, there are additional opportunities available through third-party LRTs, such as the innovative Pendle Finance protocol, which seeks to further increase $eETH returns by splitting them into $PT-eETH and $YT-eETH.
$PT-eETH is a token that forgoes $eETH returns and points to instead earn a flat ~20% APY. $PT-eETH can be redeemed for $eETH at a 1:1 ratio when it expires.
As for $YT-eETH, this provides DeFi investors with leveraged exposure to $eETH yields and points that are transmitted to holders perpetually until expiration, at which point the token decays to worthlessness. . Currently, $YT-eETH holders can accumulate 39 EtherFi points and 20 EigenLayer points.
Bringing utility to $PT-eETH
While Pendle Finance currently stands out for offering the industry's highest fixed yield for $ETH through its $PT-eETH offering, along with complete certainty of those returns, Thetanuts Finance's Leveraged LRT Strategy Vault provides users the opportunity to increase those returns even further.
With its new offering, Thetanuts is integrating $PT-eETH to launch a leveraged LRT strategy vault on the Ethereum Mainnet.
PT-eETH holders can wait for their tokens to expire on June 27 before they can take profits, or exit their position early if the implied APY is favorable. While awaiting maturation, Thetanuts Finance Leveraged LRT Strategy Vault provides $PT-eETH holders the opportunity to earn additional yield by using their $PT-eETH to generate additional returns through option premiums and rewards.
With its Leveraged LRT Strategy Vaults, Thetanuts has created a novel mechanism where users must “Zap” their $PT-eETH tokens and deposit them into the Thetanuts Finance v3 lending marketplace, and borrow $ETH. This $ETH is then deposited into the $ETH Call Basic Vault (“ETH-C”), where it generates additional Basic Vault Option premiums, but assumes the risk of short volatility.
In this way, Thetanuts Finance leveraged LRT vaults give $PT-eETH holders the ability to use a valuable asset, which they could previously only hold until maturity. In total, they will be able to generate additional yield in five ways: EigenLayer Points, EtherFi Loyalty Points, Pendle $PT-eETH Fixed Yield, Thetanuts Finance $ETH-C Core Vault Option Bonuses, and $NUTS Rewards After Thetanuts Governance Finance. the token is activated.
Thetanuts Finance is proud to offer a new industry first with its innovative leveraged LRT strategy vaults. The launch represents the first time an options exchange has created a new return-generating tool for LRT-related staking products. Because of this, it is very likely that there will be strong demand for the new product. There are currently 150,000 $PT-eETH (worth $577mm) currently in circulation.
Thetanuts Finance will first launch its Leveraged LRT Strategy Vault on Ethereum Mainnet and will eventually integrate other LRT protocols, enabling a similar strategy with other LRTs as collateral assets.
As with all DeFi investments, $PT-eETH short vaults are not completely risk-free, as depositors effectively assume the risk of short-term volatility. As such, there is a danger that your deposits will become worthless if the eETH or PT-eETH market crashes.
About Thetanuts Finance
Thetanuts Finance is the leading decentralized on-chain options protocol focused on altcoin options. With the launch of Thetanuts Finance Leveraged LRT Strategy Vault, Thetanuts Finance will be making its foray into the world of staking and liquid recovery tokens.
ContactDaniel Edelstein[email protected]
This article was originally published on Chainwire.
