Vault Synopsis

The OPAL Leveraged weETH vault provides liquid leveraged exposure to weETH native yield and wETH lending rates on Ethereum mainnet.

Strategy Overview

The vault holds weETH tokens as collateral on Aave V3 (Core) and borrows wETH 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 weETH and the wETH 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.

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

Current Position

Parameter	Value
Chain	Ethereum
Underlying	weETH (Ethena)
Current Reward Market	weETH
Lending Market(s)	Aave V3 (Core)
Debt Token	wETH
Deposit Token	weETH or Any (Zap-enabled)
Share Token	opal-weETH-a (ERC-20)
Target Leverage	12.5x (may vary)
Current LTV	92%
Liquidation LTV	95%

Vault Actions

Action	User Provides	User Receives
Deposit	weETH or Any (Zap-enabled)	opal-weETH-a
Withdraw	opal-weETH-a	weETH or Any (Zap-enabled)

Adapters in This Vault

Adapter	Type	Purpose
Multi-asset Collateral	Aave V3	Holds weETH as collateral, borrows wETH

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.