LRTfi with VaultCraft
Supercharge your LRT’s with auto-compounding Smart Vaults
Following the recent success of the rsETH Smart Vault and our ongoing support for restaking on Eigenlayer, we’re excited to leverage VaultCraft’s new auto-compounder strategy to enhance LRTfi for the following Liquid Restaking Tokens (LRTs):
ezETH, eETH, primeETH, and vETH will be released in the coming days. Prepare your ETH and deposit here: app.vaultcraft.io
svETH
- Target Base APY: 81%+
- Target oVCX Boost: 15%+
- Eigenlayer Points: ✅
- Vector Reserve Points: Boosted ✅
- oVCX boost: ✅
- Strategy: Zap ETH into svETH/wstETH to auto-compound rewards on Aura
- LP token address: 0xdedb11a6a23263469567c2881a9b9f8629ee0041
ezETH
- Target Base APY: 16%+
- Target oVCX Boost: 15%+
- Eigenlayer Points: ✅
- ezPoints: Boosted ✅
- oVCX boost: ✅
- Strategy: Zap ETH into ezETH/WETH to auto-compound rewards on Aura
- LP token address: 0x596192bb6e41802428ac943d2f1476c1af25cc0e
eETH
- Target Base APY: 4.52%+
- Target oVCX Boost: 15%+
- Eigenlayer Points: ✅
- EtherFi Points: Boosted ✅
- oVCX boost: ✅
- Strategy: Zap ETH into weETH/WETH to auto-compound rewards on Aura
- LP token address: 0x13947303f63b363876868d070f14dc865c36463b
rsETH
- Target Base APY: 3%+
- Target oVCX Boost: 15%+
- Eigenlayer Points: ✅
- Kelp Miles: Boosted ✅
- oVCX boost: ✅
- Strategy: Zap ETH into ETHx and deposit for rsETH
- LP token address:
primeETH
- Target Base APY: 3%+
- Target oVCX Boost: 15%+
- Eigenlayer Points: ✅
- primeETH XP: Boosted ✅
- oVCX boost: ✅
- Strategy: Zap ETH into primeETH
- Token address: 0x6ef3d766dfe02dc4bf04aae9122eb9a0ded25615
How do we auto-compound LRT rewards?
VaultCraft’s Smart Vaults streamline depositing liquidity into Balancer and then staking your received Balancer Pool Token to earn AURA in addition to Balancer’s native rewards. Both Balancer and AURA rewards are auto-compounded along with Balancer trading fees, boosting your returns even more!
Why farm oVCX with LRTfi?
The most attractive feature of VaultCraft’s LRTfi is the explosiveness of the VCX token, making it the best farmable token in DeFi. The VCX Value Accrual article perfectly explains why.
VaultCraft uses WETH from oVCX redemptions to buyback VCX
WETH is used to buyback VCX from the 20 WETH 80 VCX Balancer pool at the end of every month. The first buyback and burn resulted in the following:
- 33.81 ETH (tx link) in VaultCraft revenue used to buyback 2,570,750 VCX
- 0.3% of the total supply, a $124,549.81 equivalent, has been burned
- 0.85% of total minted has been burned
- VCX in 80/20 BAL pool increased to $1,059,409
- WETH in 80/20 BAL pool increased to $267,400
- Total VCX burned is now 7,321,210 (Etherscan)
Liquid Restaking Tokens
Renzo (ezETH)
Restaked ETH: 113.4K | TVL: $310.8m
Renzo is a Liquid Restaking Token and Strategy Manager for EigenLayer. It serves as the gateway to the EigenLayer system, which secures Actively Validated Services (AVSs) and provides a higher yield compared to ETH staking. Currently it holds a market share of ~9.5% of the total Restaking Token TVL.
EtherFi (eETH)
Restaked ETH: 434.9K | TVL: $1.2B
EtherFi was the inaugural LRT to facilitate stakers in accessing the benefits of ETH staking, including staking rewards and EtherFi/Eigenlayer points. Presently, it maintains the top spot in Total Value Locked rankings, commanding approximately 35% of the Liquid Restaking Market, with approximately 4345K ETH restaked.
Kelp DAO (rsETH)
Restaked ETH: 156.5K | TVL: $428.8m
In Kelp, restakers have the option to stake their Liquid Staking Tokens (LSTs) in order to generate rsETH tokens, which signify ownership of a portion of the underlying restaked assets pool. Subsequently, these tokens are distributed among different Node Operators collaborating with the Kelp DAO. The value of the rsETH token mirrors the collective worth of the various reward and staked tokens. Put simply, by staking their LST, users can acquire rsETH tokens, granting them a stake in the rewards generated from the restaked assets, reflective of the overall value of the staked and reward tokens.
Prime Staked (primeETH)
Restaked ETH: 10.1K | TVL $28.7m
Prime Staked ETH (primeETH) is a LRT that provides liquidity for assets that have been deposited into EigenLayer. By converting staked ETH into primeETH, users can stack ETH staking yield, EigenLayer points, and primeETH XP points all while remaining liquid.
primeETH is a reward-bearing token that works similarly to cTokens. primeETH tokens are not rebasing like stETH or OETH. Instead, the underlying rewards accrued by restaking positions are reflected in the price of primeETH over time as it increases in value.
primeETH is brought to you by many of the same people from Origin Protocol that have launched multiple DeFi products with $100M+ in TVL. Prime Staked is a fork of Kelp which has been battle-tested with hundreds of millions of funds and has been audited by sigmaPrime and code4arena. The primary change to the codebase was the addition of new LSTs and configuring their associated oracles. Each of the newly added assets have been carefully reviewed to make sure they don’t introduce new reentrancy vectors or unexpected behaviors. The code for handling ETH deposits was removed until some non-critical bugs can be resolved.
Vector Reserve
Restaked ETH: 3.5K | TVL $36.1m
Vector Reserve is a liquidity layer powered by EigenLayer, combining ETH, LSTs, and LRTs to create a diversified, fully collateralized basket of optimized ETH yields in the form of vETH. This opens new revenue streams for ETH stakers, similar to the impact of services like Lido and Rocketpool before the Shanghai update. Vector is introducing a new class of tokens, LPDs, to serve as a proxy for all Beacon Chain staking, liquid staking, liquid restaking, and LP yields. The Liquidity Position Derivative (LPD), vETH, functions essentially as a managed ETF.
Conclusion
VaultCraft’s auto-compounding strategy is in a class of its own. Now that LRTfi is here, why earn base yield + rewards when you can auto-compound both with oVCX rewards!
