Thetanuts Finance debuts leveraged LRT Strategy Vault

on Mar 14, 2024
  • Thetanuts Finance is a leading figure in the decentralized on-chain options protocol arena.
  • This move integrates Pendle Finance’s PT-eETH offering.
  • Holders of eETH can augment their rewards through EigenLayer points and EtherFi Loyalty Points,

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Thetanuts Finance, a leading figure in the decentralized on-chain options protocol arena, has announced a Leveraged LRT Strategy Vault on the Ethereum Mainnet.

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This move integrates Pendle Finance’s PT-eETH offering, marking Thetanuts Finance’s first venture into the burgeoning domain of restaking and Liquid Restaking Tokens (LRTs), which has seen over $10 billion in Total Value Locked (TVL) within the Decentralized Finance (DeFi) sector.

Accelerated staking yields

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Restaking emerges as a novel method enabling DeFi enthusiasts to leverage their staked ETH for securing additional networks, thus earning yields beyond the traditional Ethereum Mainnet rewards.

Restaking technology, spearheaded by EigenLayer, permits direct restaking through its native dApp or via liquid restaking protocols like EtherFi. This process generates Liquid Restaking Tokens (LRTs), further amplifying yield opportunities across the DeFi landscape.

EtherFi, leading the LRT market with $2.5 billion in TVL, allows for the deposit of various Ethereum-based assets to mint its LRT, known as eETH.

Holders of eETH can augment their rewards through EigenLayer points and EtherFi Loyalty Points, with Pendle Finance enhancing these yields further by dividing eETH into PT-eETH and YT-eETH tokens.

Bringing utility to PT-eETH

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Pendle Finance distinguishes itself by offering an unparalleled fixed yield on ETH through PT-eETH, assuring definite returns.

Thetanuts Finance’s introduction of the Leveraged LRT Strategy Vault for PT-eETH holders on the Ethereum Mainnet amplifies this utility, providing a pathway to elevate yields through innovative means.

This unique mechanism involves “Zapping” PT-eETH tokens into Thetanuts Finance’s v3 Lending Market, facilitating the borrowing of ETH.

This borrowed ETH is then deployed in the ETH Call Basic Vault, generating option premiums while bearing short volatility risk, thus offering PT-eETH holders a multifaceted yield generation strategy.

A pioneering yield-generating tool

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Thetanuts Finance’s Leveraged LRT Strategy Vaults represent an addition to the options market, creating a novel yield-generating avenue for LRT-staked products.

With 150,000 PT-eETH in circulation, worth approximately $577 million, the demand for this innovative product is anticipated to be substantial.

However, as with any DeFi venture, potential risks loom, particularly concerning the volatility of eETH and PT-eETH markets.

Investors are reminded to exercise caution, acknowledging the inherent risks associated with short-call vaults and the volatile nature of DeFi investments.


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