Token Flow

  1. User deposits wstETH into the lov-wstETH vault for shares

  2. User burns their lov-wstETH shares for wstETH when exiting

  3. lov-wstETH deploys to Lido Protocol by holding wstETH reserves

  4. lov-wstETH vault borrows WETH to swap into wstETH for 11x Effective Exposure

  5. lov-wstETH shares are worth more wstETH as yield accrues

  6. lov-wstETH captures 1x unlevered yield and 10x spread on yield after leverage

  7. RebalanceDown triggers the lov-wstETH vault to borrow more WETH from the Spark LP

  8. RebalanceUp to sell wstETH into WETH to pay down debt owed to the Spark LP

Last updated