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Sharpe Earn, an ERC4626 vault on the Ethereum network, offers staking efficiency by introducing a leveraged stETH position model. Our first product is a leveraged staking layer that is built on top of lido stETH combining Morpho and Aave to increase staking yields. It addresses the challenge of low capital efficiency in traditional staking pools. By leveraging flashloans and borrowing assets from Aave, Sharpe Earn significantly amplifies the exposure of Lido's stETH. This approach allows users to earn higher APYs on their staked assets while still benefiting from the underlying protocol guarantees and deep liquidity of existing staking pools.
Functioning similarly to staking protocols like Lido or Rocketpool, Sharpe Earn differentiates itself by not just matching staked assets 1:1 but by strategically using flashloans to increase asset exposure. This ensures healthy collateral and leverage levels, continuously monitored by on-chain oracles and automated smart contracts. This document aims to provide a comprehensive technical overview of Sharpe Earn, delineating its unique position in the evolving landscape of staking and yield optimization on the Ethereum network.
- 1.Enhanced APYs: Sharpe Earn increases the capital efficiency of staking pools, enabling users to earn higher APYs on their staked assets.
- 2.Non-Custodial Platform: Utilizes decentralized, trustless smart contracts, granting users full control over their funds and ensuring asset security.
- 3.Liquidity and Protocol Guarantees: Builds upon existing staking pool infrastructure, mirroring their liquidity and boosting APYs while maintaining established protocol guarantees.
- 4.Continuous Risk Monitoring: Employs on-chain keepers for ongoing risk assessment, with automatic de-leveraging mechanisms to protect against potential losses, ensuring platform sustainability.
- 5.Capital Efficiency Maximization: Focuses on efficient capital use, leveraging flashloans and borrowing-staking spreads to optimize exposure to staked assets, resulting in higher staking APRs.
- 6.Unified Liquid Staking Infrastructure: Offers a comprehensive infrastructure for staking across various EVM chains, including Ethereum and Polygon, aiming for maximized yields.
- 7.Composable System: Adheres to the ERC-4626 standard, facilitating easy integration into diverse DeFi protocols and applications, enhancing its utility and flexibility within the DeFi ecosystem.
- 8.magETH Token Utility: Depositing ETH into Sharpe Earn yields magETH tokens, which can be used across various DeFi applications, further extending its use cases and applicability.
Last modified 22d ago