ETH vault using derivatives to boost Liquidity Provider yield.
💡 This vault uses the yield earned from liquidity provision "base yield" to take leveraged derivatives positions to create an enhanced return while keeping users' principal in blue-chip liquidity pools with active risk monitoring.
Strategy Type: Boosted Liquidity provision Yield
Frequency: The strategy runs on weekly cycles
Fees: No Fees
- User deposits ETH or WETH in the vault on the ETH mainnet
- The principal is allocated to liquidity pools optimized for risk, liquidity, and yield by the vault.
- The vault harvests the interest earned in the pool weekly, bridges it to Optimism, and uses it to purchase options on Lyra Finance using a momentum trading strategy; 1-week at-the-money ETH options (calls if the signal is bullish, puts if the signal is bearish.
- The interest is bridged and transferred across protocols and chains by the Brahma smart contracts. (Currently, we use socket.tech to bridge across chains)