Leverage Tokens are now live on @ethereum Mainnet, bringing one-click leverage strategies to DeFi’s deepest markets - powered by @MorphoLabs 🦋.
This could impact roughly 20% of DeFi TVL. Here's how: 🧵
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Over $120B in DeFi liquidity flows through lending protocols. By some calculations, 20% of this liquidity is manually looped to reach a leveraged position.
Manual leverage is:
🕐 Time-consuming
⛽ Expensive
🔁 Stressful
Leverage Tokens fix this.
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In their first form, Leverage Tokens take yield-bearing assets and automate the looping process.
Anything that earns yield and has a lending market can become a Leverage Token -- opening endless possibilities for strategies and amplified returns.
Excited to introduce the two Leverage Tokens now available on Mainnet (with many more to come)! 👇
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First up is the RLP/USDC Leverage Token.
This LT pushes @resolvlabs RLP yield further. The new RLP/USDC Leverage Token targets a 6.75x ratio -- higher than most DeFi platforms. This LT's leverage and strategy parameters were analyzed carefully and backtested to optimize for onchain looping behavior.
Check it out here:
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These backtested results of the RLP/USDC LT highlight its performance vs simply holding RLP.
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Next up is a wstETH/ETH Leverage Token with @LidoFinance.
Maximize ETH staking yield. The wstETH/ETH 25x Leverage Token delivers the highest leverage on Mainnet, optimized to rebalance and capitalize on staking rewards.
Check it out here:
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Backtesting shows the wstETH/ETH Leverage Token delivering stronger performance than a simple wstETH hold.
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Thank you to our many partners helping bring Leverage Tokens alive!
w/ audits from @cantinaxyz and @sherlockdefi ✅
Plus an ongoing live bug bounty with Sherlock 👾
@MorphoLabs @LidoFinance @ResolvLabs @ether_fi @gauntlet_xyz @spectra_finance @JumperExchange @base @pendle_fi @ethena_labs @MEVCapital @GetYieldFi @hyperithm @maplefinance @k3_capital @OriginProtocol @reserveprotocol @summerfinance_ @autopools @superformxyz @beefyfinance @harvest_finance @gizatechxyz
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TradFi is already obsessed with Leverage. Let's scale it efficiently onchain.
This is only the beginning. Leverage Tokens are permissionless, unlocking endless new strategies ahead.
Simpler. Smarter. Seamless.
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