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Fixed-term/Fixed-rate Leveraged Lido staking

Fixed-term, fixed-rate leveraged Lido staking uses fixed-term, fixed-rate internally and leverages the Lido positions.
Fixed-term, fixed-rate leveraged Lido staking combines the following elements:
  • Lido staking
  • Fixed-rate borrowing
  • Leverage
  • Risk management tools
  • Positions Monitoring System
It allows the users to leverage their Lido staking positions 2x - 5x via fixed-term borrowing of ETH against stETH as collateral.
The key advantages of this solution are:
  • Users can leverage up their Lido staking via fixed-term borrowing - the interest costs are known in advance
  • If using variable rate-based leveraging systems - for example, summer.fi, then the borrowing costs are variable, and the users are exposed to variable Lido return and variable borrowing costs in Aave at the same time
  • Risk Management Tools which allow to choose optimal risk/reward ratio
  • Positions Monitoring System, which monitors continuously your Leveraged Positions and informs you, if any actions are required

Entering the position

Here is the main screen:
Main screen
Users can enter the following data:
  • How many times he would like to leverage his positions (from 2x to 5x)
  • The initial deposit
  • The period is fixed - it is 180 days
Users will see the return on the investment and the probability of liquidation on the right screen.
The latter is a unique feature of SmartCredit.io - it shows the liquidation probability of the position - it depends on the volatility of sETH/ETH ratio. Increasing stETH/ETH volatility results in higher liquidation probability and vice versa. Please note - liquidation probability is declining with every day.
Users can play with different leverage factors and choose the best one. After that, the user should connect his wallet, create a Leveraged Staking LIne, and deposit ETH.
The user should connect his wallet with his telegram for the Positions Monitoring System (via "Profile ==> Settings"). This will keep user up-to-date with any actions required on his position.

Early finishing of the position

Users can monitor their positions via the SmartCredit.io. They would then see something like this (after connecting their wallets):
Monitor Leveraged Position via the User Interface
The user sees here the liquidation probability chart and has an option for an early repayment.

Early repayment with Curve

The user has an option for an early repayment:
  • The position will be un-wrapped via the Curve ETH-stETH pool
  • It gives flexibility, but the user might receive less than via the regular position finishing with Lido
  • However, the user still needs to pay the fixed interest for the position
So, this option gives flexibility to the user, but he might return less than via regular position finishing with Lido

Regular positions finishing with Lido

The user can close his position via regular Lido un-staking. As we build up on the Lido un-staking process, the user might wait here up to 24 hours (this is standard operating procedure in Lido)

Platform fees

Platform charges:
  • 5% fee from the investment profit earned
  • regular borrowing fees

Positions Monitoring System

The Positions Monitoring System monitors 24x7 your positions and informs you if the liquidation probability either increases or declines.
Pre-condition:
  • user has to connect his wallet with his telegram ID via "Profile ==> Settings"

Tutorial videos:

Further info