Token Flow

Fig 12. Displaying the user flow for earning ether.fi, Eigen Layer and Ori Points with the lov-weETH vault.

1. Users deposit weETH into the weETH 4x vault for shares

2. Users burn their shares of weETH 4x for weETH when exiting

3. weETH 4x deploys to ether.fi Protocol by holding weETH reserves

4. weETH 4x vault borrows wrapped ETH (WETH) to swap into weETH for 4x Effective Exposure

5. weETH 4x vault supplies weETH to the Morpho LP (86% LLTV Pool)

6. weETH 4x vault farms

   1. ether.fi Loyalty Points at 2x per fold (8x total)

   2. EigenLayer Restaking Points at 1x per fold (4x total)

   3. Ori Points at 10x

7. Rebalancing down triggers the weETH 4x vault to borrow more WETH using flashloans

8. Rebalancing up sells weETH into WETH to pay down debt owed to the Morpho pool