How LETH works

A Liquid Looping Token that utilizes an automated looping strategy to generate a higher yield for stakers on Ethereum.

Example:

  1. A whitelisted user deposits 200 ETH and receives ~200 newly-minted LETH in return, minus the gas & execution fees to execute the transaction.

  2. Slippage & execution fees are included in the price when minting & redeeming. loopedETH earns no profit from the minting or redeeming of LETH.

  3. The Risk Curator oversees AutoLoop, which stakes the underlying ETH into a Liquid Staking Protocol (i.e Liquid Collective), receives lsETH, then supplies it to a decentralized lending protocol, borrows ETH against lsETH, and stakes ETH again. This strategy is recursively executed up to 15x.

  4. The Risk Curator calibrates AutoLoop to rebalance the position daily. Based on the current market conditions, the multiplier is adjusted for the most efficient and safest looping strategy.

→ Learn more about AutoLoop

→ Read LETH's Security & Risk Framework

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