The ETH Max Yield Index is Live on Ethereum!
If there’s a man among ye, ye’ll come up and fight like the man ye are to be!
→ Enter our $ETHMAXY Giveaway on Gleam ⛵️
Galleon DAO & Beverage Finance are excited to announce the launch of our second collaborative, fully composable, mainnet product, the ETH Max Yield Index ($ETHMAXY).
ETH Max Yield Index ($ETHMAXY)
The ETH Max Yield Index is a new structured product built natively on the Ethereum network to enable traders to gain 3x+ leveraged staked ETH yield exposure via stETH, through Lido and Aave.
This product was made possible through the successful pass of stETH being added to Aave: https://governance.aave.com/t/proposal-add-support-for-steth-lido/2123/14
Galleon DAO & Beverage Finance are taking no prisoners to the brig, the ETH Max Yield Index is our first structured product released on mainnet targeting the large capital pools that exist on Ethereum that are seeking to put their assets to work. ETHMAXY provides a 3x+ stETH levered position using ETH as the debt asset. In a representative example, if stETH is paying 5% staking APY while the borrowing rate for ETH is <1%, ETHMAXY would achieve 13–15% APY, the highest ETH APY rates seen in DeFi whilst maintaining full composability and simplicity of a regular ERC20 token. Choose to enter and exit your position with a single swap on Uniswap, it’s that easy.
The ETH Max Yield Index was built as a partnership product aiming to give DeFi natives the most yield possible on their staked ETH in addition to acting as a best-in-class treasury diversification asset for DAOs looking to maximise the productivity of their idle ETH.
Interested in an asset like this for your DAO treasury? Reach out to us on Discord, we would be happy to guide you through the process for minting in larger quantities and pay any transaction fees accrued to do so.
Understanding the Methodology
The Ethereum Max Yield Index follows a strict methodology, it is composed of stETH, deposited as collateral, allowing ETH to be borrowed and wrapped into stETH — this process is repeated until the token is 3x+ levered. Aave LTV for stETH is 70% and liquidation is at 75% which means stETH can be looped 3.33x — 4x.
Product parameters
- Underlying Asset: stETH (collateral), ETH (debt asset).
- Rebalance Interval: No fixed interval. The product will be rebalanced if the leverage ratio falls due to stETH APY accrued.
- Streaming Fee: 1.95%
Where to Buy:
You can buy the ETH Max Yield Index on Ethereum through:
You can add liquidity on Sorbet Finance (Gelato):
ETHMAXY Issuance, Staking & Rewards Program
Liquidity Rewards TLDR
→ At $1M liquidity — 80% APR
→ At $5M liquidity — 16% APR
→ ~$66,000/m in rewards at current, sub $5M market valuations for both $DBL & $DRINK
In this section, we’ll be covering a guide for those who want to issue ETHMAXY either in scale for their own holdings or want to help Galleon DAO provision the product base Uniswap V3 DEX liquidity, enjoying leveraged yield and capturing our lucrative incentive scheme for creating a healthy market.
The process involves a bit of repetition as we repeatedly mint ETHMAXY using aSTETH, returning ETHMAXY and WETH, which represents a debt that is being taken on, that can be swapped to more stETH and repeated. It’s worth noting that when you want to sell you can just sell ETHMAXY through the V3 pool, there is no need to go through a redemption process unless our concentrated V3 liquidity cannot facilitate the trade.
Note: As a small incentive on top of our LP rewards we will cover gas fees up to 2.5% of the minted position e.g. $20,000 of ETHMAXY minted, we will cover up to $500 of your gas fees for LPing
Step 1
Own stETH, an easy way is using 1inch for direct swapping into stETH on Lido from any asset (routed through ETH).
Step 2
Deposit stETH into Aave. We need to do this because aSTETH is the entry point asset for ETHMAXY issuance.
Step 3
Issue ETHMAXY on the following TokenSets page
- Connect your wallet
- Click the dropdown menu next to the ‘Sell’ button and click ‘Issue’
- Approve spending of your aSTETH
- Click ‘Max’ and issue your ETHMAXY
(Optional) You will receive ETHMAXY & WETH. You can optionally use this WETH to trade into more stETH and repeat steps 1–3 to fully wind up a full ETHMAXY position, transaction fees are the only thing to keep in mind. The simplicity in this product comes from people being able to trade into the liquid asset for max exposure without any of this issuance process (which is why we want to reward LP).
Step 4
Create your LP position on our ETHMAXY/WETH G-UNI Pool on Sorbet Finance.
- Approve ETHMAXY & WETH
- Deposit all your ETHMAXY into the pool and the small ETH requirement
- Receive G-UNI Pool tokens
Our liquidity is concentrated on Uniswap V3 within a [-1%, 10%] range above the ETH price (ETHMAXY should only appreciate vs ETH due to yields).
Step 5
Stake your G-UNI LP tokens on SetSwap below on our ETHMAXY page and earn $DRINK & $DBL dual rewards.
- Approve your LP Tokens for Staking
- Click the Stake button & click ‘Max’
- Confirm your deposit into the staking contract
You will see your $DRINK rewards go up periodically at launch, we are also following up with $DBL rewards on 14/03/2022 as a dual incentive scheme and reward for LPs for our new flagship product. Enjoy!
Have a question about providing liquidity, ETHMAXY or the rewards program? Stay tuned on our Twitter and reach out on Discord for support.
