Token Flow

Fig 24. Displaying the user flow for earning yield with the sUSDe 5x vault.

1. User deposits sUSDe into the sUSDe 5x vault for shares

2. User burns their shares of sUSDe 5x for sUSDe when exiting

3. sUSDe 5x deploys to Ethena Protocol by holding sUSDe reserves

4. sUSDe 5x vault borrows DAI to swap into sUSDe for 5x Effective Exposure

5. sUSDe 5x shares are worth more sUSDe as yield accrues

6. sUSDe 5x vault captures 1x un-levered and 4x spread on yield after leverage

7. sUSDe 5x vault farms Ethena Sats at a 25x multiplier and Ori Points at a 10x multiplier

8. RebalanceDown triggers the sUSDe 5x vault to borrow more DAI from the Morpho LP (86% LLTV Pool)

9. RebalanceUp sells sUSDe into DAI to pay down debt owed to the Morpho LP