Token Flow

Fig 26. Displaying the user flow for earning yield with the sUSDe 7x vault.

1. User deposits sUSDe into the sUSDe 7x vault for shares

2. User burns their shares of sUSDe 7x for sUSDe when exiting

3. sUSDe 7x deploys to Ethena Protocol by holding sUSDe reserves

4. sUSDe 7x vault borrows DAI to swap into sUSDe for 7x Effective Exposure

5. sUSDe 7x shares are worth more sUSDe as yield accrues

6. sUSDe 7x vault captures 1x un-levered and 6x spread on yield after leverage

7. sUSDe 7x vault farms Ethena Sats at a 35x multiplier and Ori Points at a 10x multiplier

8. RebalanceDown triggers the sUSDe 7x vault to borrow more DAI from the Morpho LP (91.5% LLTV Pool)

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