[FSVP-5] vETH LP LRT Smart Vault

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Smart Vault Details

Protocol Description:

The core objective of Vector Reserve is to harness optimized liquid staking and liquid restaking yields to introduce a diversified, risk adjusted reserve currency built on ETH, offering market leading yield. It does this by harnessing ETH, and associated Liquid Staking Tokens (LST) and Liquid Restaked Tokens (LRT) to create a diversified treasury of Liquidity Position Derivatives (LPD) in traditional ETH/LST or ETH/LRT LPs, which can earn a further yield boost via EigenLayer’s Superfluid Staking. vETH is able to accrue both protocol airdrop points from partner LRT and LSTs, and EigenLayer points from underlying LRTs. The end result is a diversified, fully collateralized basket of optimized ETH yields in the form of Vector ETH (vETH); providing both a best-in-class yield experience for users, but also driving significant value to the VEC reserve currency.

Strategy Description:

Using Aura adapter, stake the user’s vETH/wstETH Balancer LP Token in an Aura gauge, earning the platform’s governance token. Earned tokens are swapped for more LP Token. To complete the compounding cycle, the new LP Token is added to the farm, ready to go for the next earning event.

Additionally, users recieve their LRT/EL Points, trading fees, and BAL/Aura emissions.

Vault will be on Ethereum mainnet.

Vault shares to be used as receipt of deposits to track points. User redeems vault share for underlying deposit.

Value proposition

For users, this is a strong alternative to LPing directly to Balancer as the vault handles Aura staking, reward compounding, and importantly offers oVCX emissions as a boosted APR.

Commitments

  • Co-marketing
  • Points tracking

Audits