Token Flow

  1. User deposits USDe into the lov-USDe-b vault for shares

  2. User burns their shares of lov-USDe-b for USDe when exiting

  3. lov-USDe-b deploys to Ethena Protocol by holding USDe reserves

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

  5. lov-USDe-b vault supplies USDe to the Morpho LP (91.5% LLTV Pool)

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

  7. RebalanceDown triggers the lov-USDe-b 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

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