Vault Synopsis

The Liquid Leverage sUSDe/USDe vault provides liquid leveraged exposure to sUSDe native yield, USDe lending rates and Merkl rewards on Ethereum.

Strategy Overview

The vault holds sUSDe and USDe tokens as collateral on Aave V3 (Core) and borrows USDT to achieve liquid leveraged exposure to the spread on the supply/lend yields. The depositor's vault share remains valid across all incentive campaign periods.

The yield source is the difference between the sum of yield from staking USDe, Merkl reward yields and the USDT borrow cost on the lending market. As long as the borrow costs are lower than the reward yields, the vault generates a positive yield spread.

$$\text{Yield Spread} = \text{(Staking yield + Merkl Reward Yields)} \times \text{Leverage} - \text{Borrow Rate} \times (\text{Leverage} - 1)$$

Current Position

Parameter	Value
Chain	Ethereum
Underlying	sUSDe (Ethena)
Current Reward Market	sUSDe/Merkl
Lending Market(s)	Aave V3 (Core)
Debt Token	USDT
Deposit Token	sUSDe or Any (Zap-enabled)
Share Token	opal-sUSDe-merkl-b (ERC-20)
Target Leverage	9x (may vary)
Current LTV	89%
Liquidation LTV	92%

Liquid Leverage addresses the 7-day unstaking cooldown issue for sUSDe users. By maintaining at least half the position in USDe and employing leverage, it creates a loop that keeps a portion of the funds liquid, free from the 7-day cooldown constraint.

Vault Actions

Action	User Provides	User Receives
Deposit	sUSDe or Any (Zap-enabled)	opal-sUSDe-merkl-b
Withdraw	opal-sUSDe-merkl-b	sUSDe or Any (Zap-enabled)

Adapters in This Vault

Adapter	Type	Purpose
Multi-asset Collateral	Aave V3	Holds sUSDe and USDe as collateral, borrows USDT

Additional adapters (e.g., Morpho, Euler) may be added in the future to access alternative borrow liquidity. See The Adapter Layer for details on how new adapters are deployed and migrated.