Definitive Hyperstaking Strategy

~2x-5x the LIDO Staking APR on ETH with Definitive

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Deposit Assets	ETH, wstETH
Estimated Yield	7% - 23% (depends on underlying network)
Protocols Involved	AaveV3, Balancer, Lido, Moonwell, Morpho, Benqi, Compound V3
Networks	Ethereum, Optimism, Arbitrum, Polygon, Avalanche, Base

Strategy Overview

Staking ETH at Lido validators generates ~4% APR.
The yield can be increased using lending protocols like Aave through a process known as “looping”.
Looping involves exchanging ETH for an ETH-denominated LST (such as wstETH), using the LST as collateral on Aave (or Compound), borrowing more ETH, and then repeating the process.
The delta between the Lido Staking APR and the ETH borrow rate drives the APR (see FAQs)
However, this approach comes with risks and is difficult to execute manually:
- Real-time automation and monitoring are required to ensure that the position is not at risk of liquidation.
- Executing multiple transactions poorly (slippage, price impact) along with unoptimized gas fees can eat into the yield.

Why use Definitive?

Definitive enables maximum capital efficiency while also automating risk and position management. Our proprietary high frequency monitoring and automation engine tracks every strategy-relevant on-chain event and optimally manages the strategy.

⚡ 1-Click Enter

Manually executing this strategy requires 10+ transactions. With Definitive, only one deposit transaction is necessary, and the Definitive automation engine handles the rest.

🤖 Leverage Loan-To-Value (LTV) Automation

This strategy demands careful leverage management against changing market conditions on-chain. Definitive integrates the same oracles as the underlying lending protocol in addition to monitoring the real-time on-chain liquidity conditions. If the price of the collateral or borrow asset causes position LTV to drift, Definitive will automatically reduce the strategy’s position accordingly to stay safe from liquidation (read about LTV here)

🤖 APR Stop Loss

Historically, borrow rates have fluctuated in times of market turmoil to the point where other providers of leveraged staking were losing their clients’ money. Definitive introduces a real-time APR monitor that will automatically exit the strategy when a minimum yield rate is not met for configured duration.

🤖 Peg Price Automation

Definitive ****monitors the price of the LST vs ETH, tracking the drift between the two. If the price of the LST were to exceed your configured boundaries, Definitive would immediately trade out of the LST and back into ETH.