Shield Staking Vault represents the next generation of yield-generating solutions for Proof-of-Stake (POS) assets, such as ETH and BNB. Shield's mission is to provide the best yields in the space, leveraging its expertise in option trading and the composability of defi.
Staking Vault includes two innovative products: Aggregate Staking and Option-Boost Staking. Both offer a degree of principal protection while providing stable returns on your investment and taking advantage of short-term market opportunities. By using Staking Vault, you can benefit from market movements without jeopardizing your principal.
The Aggregate Staking Vault offers users the opportunity to earn staking rewards and bonus liquidity mining yields, while also maintaining their exposure to stETH. After depositing assets like ETH, the Staking Vault will search for the best routes within the DeFi ecosystem, and return the best yield back to the users.
Currently, the Shield Staking Vault deposits all assets into a stETH/ETH pool on Curve Finance, which generates trading fees in CRV and incentivized rewards in LDO and CRV, while continuing to earn staking rewards for the user's stETH exposure. Check How To: Providing stETH liquidity via Curve for detailed information.
Option-Boost Staking Vault is designed to enhance users' yields by leveraging its unique expertise in option trading. Building on top of Aggregate Staking, Option-Boost Staking utilizes a selected option strategy, specifically the wedding strategy, to take advantage of short-term market volatility to increase the profit potential while protecting the principle. To cater to different risk preferences, Shield offers two tiers of Option-Boost Staking.
Basic Tier allocates 100% of yield accruals into exotic option trading, increasing profit potential while ensuring 100% principle safeguard.
Advanced Tier takes a calculated risk by deploying 90% of the principle to the stETH/ETH pool on Curve Finance and using the remaining 10% along with reward accruals for option trading. This increases the potential for profit while keeping 90% of the principle secure.
Option Trading Fund
100% Principle + Profit from trading 100% accruals
Option Trading Fund
100% Accurals + 10% Principle
90% Principle + Profit from trading 100% accruals and 10% principle
Staking Vault now proactively manages risk by adjusting the proportion of deposits and reward accruals invested in option trading strategies at each epoch. If an option expires without value, the unused funds will be invested in options for the following epoch.