Singapore, Singapore, March 14th, 2024
Thetanuts Finance, the pioneering decentralized on-chain options protocol that specializes in altcoin options, has made an exciting announcement. The protocol has integrated Pendle Finance’s $PT-eETH offering to introduce a Leveraged LRT Strategy Vault on the Ethereum Mainnet. This is the first move by Thetanuts Finance into the rapidly expanding realm of restaking and Liquid Restaking Tokens (LRTs), which currently boast over $10 billion in Total Value Locked (TVL).
Revolutionizing Staking Yields with Restaking and LRTs
Restaking provides a unique opportunity for Decentralized Finance (DeFi) users to employ their staked $ETH to secure other networks and generate additional yield beyond what they earn on the Ethereum Mainnet. Restaking, pioneered by EigenLayer, empowers users with a choice to restake directly in EigenLayer’s native dApp or within liquid restaking protocols like EtherFi. By staking their $stETH in liquid restaking protocols, users generate “Liquid Restaking Tokens” or LRTs that can be leveraged to earn additional yield elsewhere.
Maximizing Earnings with Liquid Restaking Tokens
The leading LRT at present is EtherFi, which boasts over $2.5 billion in TVL and enables users to deposit $ETH, $stETH, $bETH, or $cbETH to mint an LRT called $eETH. By holding $eETH, users can enhance their rewards with EigenLayer points and protocol points such as EtherFi Loyalty Points. Moreover, third-party LRTs like Pendle Finance offer additional opportunities to increase the potential earnings.
Unlocking New Opportunities with $PT-eETH
Pendle Finance currently stands out by offering the industry’s highest fixed yield for $ETH via its $PT-eETH offering, with complete certainty of those returns. Thetanuts Finance’s Leveraged LRT Strategy Vault, however, offers users the chance to amplify these yields even further.
Thetanuts Finance is integrating $PT-eETH to launch a Leveraged LRT Strategy Vault on Ethereum Mainnet. Holders of PT-eETH may either wait for their tokens to mature, or exit their position earlier if the implied APY is favorable. During this waiting period, Thetanuts Finance’s Leveraged LRT Strategy Vault provides $PT-eETH holders with the opportunity to earn additional yield by utilizing their $PT-eETH to generate option premiums and rewards.
Creating a Novel Yield Generation Mechanism
Thetanuts Finance’s Leveraged LRT Strategy Vaults represent a groundbreaking mechanism. Users must “Zap” their $PT-eETH tokens and deposit them into Thetanuts Finance v3 Lending Market, and borrow $ETH. This $ETH is then deposited into the $ETH Call (“ETH-C”) Basic Vault, where it generates additional Basic Vault Option premiums but assumes short volatility risk.
Generating Multiple Yield Streams for $PT-eETH Holders
Thetanuts Finance’s Leveraged LRT Vaults enable $PT-eETH holders to utilize a valuable asset that they could previously only hold until maturity. They will be able to generate additional yield in five ways – EigenLayer Points, EtherFi Loyalty Points, Pendle $PT-eETH Fixed Yield, Thetanuts Finance $ETH-C Basic Vault Option Premiums, and $NUTS Rewards (post-launch of Thetanuts Finance’s governance token).
An Industry First: A New Tool for LRT-Related Staking Products
Thetanuts Finance is proud to deliver a new industry-first with its innovative Leveraged LRT Strategy Vaults. This represents the first time an options market has created a new yield-generating tool for LRT-related staking products. Given this, it’s likely there will be strong demand for the new product. There is currently 150,000 $PT-eETH (worth $577mm) in circulation.
Expanding the Offering: Integrating Other LRT Protocols
Thetanuts Finance will first launch its Leveraged LRT Strategy Vault on the Ethereum Mainnet and eventually integrate other LRT protocols, enabling a similar strategy with other LRTs as collateral assets.
Managing Risk: Short Volatility Exposure
As with all DeFi investments, $PT-eETH short-call vaults involve risk. Depositors effectively take on short volatility risk, so there is a danger that their deposits could become worthless if the market for eETH or PT-eETH collapses.
About Thetanuts Finance
Thetanuts Finance is the leading decentralized on-chain options protocol focused on altcoin options. With the launch of Thetanuts Finance’s Leveraged LRT Strategy Vault, Thetanuts Finance expands its offerings to include staking and Liquid Restaking Tokens.
