Mechanism
Shield Staking Vault is a cutting-edge product that combines the power of staking with the flexibility of option trading. The product leverages the security and stability of Curve Finance and Lido Finance to provide investors with a unique opportunity to maximize their staking yields and safeguard their principles.
- Upon deposit, the funds are automatically divided into two parts - a LP mining fund and an option trading fund.
- The LP mining fund is determined by the level of principle protectoin investors select, which is used to provide liquidity in the stETH/ETH pool on Curve, after a portion of ETH is swapped for stETH on Lido. This allows investors to receive trading fees and incentivized rewards, all while participating in Ethereum staking rewards in one simple click.
- The option trading fund uses the remaining principle and mining accruals to run a "wedding cake" strategy. This strategy provides fixed payouts based on the movement of the underlying asset (ETH) within pre-defined boundaries, that allows flexibility and stability in option trading.
- Even in the unlikely case where the price of ETH exceeds or drops below the defined barrier, the option expires worthless with no profit, the depositors still receive profits from the LP mining fund, ensuring the protection of their initial investment.
Last modified 8d ago