Product Flowchart
3x ETH Staking ETF (3stETH) is a closed-end fund based on the goal of maximizing ETH staking returns through a leveraged liquidity staking strategy. 3stETH is built on DeSyn's decentralized asset management infrastructure to implement a leverage strategy that maximizes stETH return, reducing transaction costs and risks associated with liquidating AAVE collateralized debt positions. You can follow the below terms and check the chart to get more details about the process of strategy.
Users only need to issue and redeem positively at fundraising and settlement period for gain investment profit from this leverage staking strategy as 3x ETH Staking ETF is a closed-end fund.
Users need to change WETH into the protocol, the smart contract will change WETH into ETH in the vault. Vault will send ETH to Lido or Curve for Interest-earning assets stETH based on the best swap rate between Lido and Curve.
Finally smart contract will collateralize stETH in AAVE to lend more ETH and deposit ETH into the first vault. This whole process will be repeated 3 times for extra staking profit with low risk as it is named recycling staking.
During the operation period, the funding manager only can adjust the leverage to control the risk. Meanwhile, smart contracts will distribute the relevant fee into the funding manager’s wallet automatically, and funding managers can claim it anytime. You can check the above chart to clear the process.
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