Token Flow

  1. User deposits sUSDe into the lov-sUSDe-a vault for shares

  2. User burns their shares of lov-sUSDe-a for sUSDe when exiting

  3. lov-sUSDe-a deploys to Ethena Protocol by holding sUSDe reserves

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

  5. lov-sUSDe-a shares are worth more sUSDe as yield accrues

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

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

  8. RebalanceDown triggers the lov-sUSDe-a 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

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