Token Flow

Fig 22. Displaying the user flow for farming Ethena Sats with the USDe 7x vault.

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

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

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

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

5. USDe 7x vault supplies USDe to the Morpho LP (91.5% LLTV Pool)

6. USDe 7x vault farms Ethena Sats at a 140x multiplier and 10x multiplier for Ori Points after leverage

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

8. RebalanceUp sells USDe into DAI to pay down debt owed to the Morpho LP