https://degen.brahma.fi/
What is the ETH Maxi DegenVault cap?
333.33 ETH
Help! I need a brief strategy explainooor.
Let’s begin by outlining the high-level strategy of the vault:
- Single-side deposits are accepted in ETH
- The vault supplies this ETH to the highest yielding Curve pool and LP tokens are staked on Convex
- Which pool? stETH/ETH - more details below
- At the end of every week, all accrued yield is harvested and converted to ETH
- The yield is bridged to Optimism and used to take a leveraged bet on crypto prices
- What leveraged bets are used? 1 week ATM options are purchased on Lyra Finance - more details in the coming sections
- Any trading profits at the end of the week are converted back to ETH, bridged back to mainnet and compounded into the strategy
For those familiar with the PMUSDC vault, you will note the similarities. The strategy is centred around preserving the users' hard-earned capital but still looks to provide enhanced returns by taking regular small, but leveraged, bets to generate asymmetric payoffs.
Read the full strategy modus-operandi here
What assets are used for deposits?
It’s a single-sided deposit vault with ETH/WETH as an asset for V1.
What's the projected APY on this vault?
The projected APY of the vault is 7%, based on strategist backtests and simulations (more info here)