Stephen | DeFi Dojo Profile picture
Oct 24, 2024 11 tweets 5 min read Read on X
LRT² ($LRT2) fixes everything.

• Stops ~40% of $EIGEN sell pressure
• Prevents AVS tokens from being auto-sold by LRTs
• Value aligns all modularity participants
• Acts as a Modularity Narrative Index (MNI)
• Creates arbitrage opportunities for defi nerds
• Also, there's going to be an airdrop

This asset will change the way we think about emissions.

It desperately needs an explainer, so let's dive in 🧵👇
What is LRT² (Ticker: $LRT2)?

In short, LRT² is tokenized restaking emissions.

For example:

Let's say you're restaking BTC on @ether_fi.

You might get:
• Eigenlayer Tokens
• eOracle Tokens
• Lagrange Tokens
• ARPA Tokens
• Symbiotic Tokens
• Babylon Tokens
• Lombard Tokens
• etc

Which would be a huge pain in the arse .Image
SO INSTEAD,

Restaking-aligned protocols can just emit $LRT2.

Users will get the same effective APR as if they were earning all of those different emissions, BUT they'll all be wrapped up in a single token, $LRT2.

This means:
► 1 Claim
► 1 Token
► 1 TransactionImage
IT ALSO MEANS,

Those AVS, LRT, and Modularity gov tokens won't be insta-dumped for higher intrinsic yields.

EXAMPLE

Many LRTs like $eBTC might want to sell their Symbiotic, Eigen, AVS, etc emissions to compound into more $eBTC and create a higher intrinsic yield.

This would be directly predatory to the AVS and restaking protocols, putting non-stop, automated sell pressure on their assets.

This would disincentivize emissions from AVS and Restaking protocols and reduce the overall yield for LRT and modular composability in defi.Image
$LRT2 solves those issues by value aligning all of these entities by mitigating auto-dumping sell pressure and solving the micro-emission issue.

All white-listed and participating protocols will use LRT2 for emissions. None of the tokens will be auto-sold.

Users can sell LRT2 (which doesn't sell any underlying tokens) and then arbitragers can decide whether or not to arb the LRT2 price back.Image
There are a few other important things to know about $LRT2.

All the underlying assets will be staked.

The ETHFI will be staked
The EIGEN will be staked
The AVS gov tokens will be staked
The Restaking protocol tokens will be staked

Making LRT2 an interest-bearing derivative that will qualify users for any of the underlying AVS or restaking protocol seasons or rewards.

It also makes it a more interesting asset for future defi integrations that might abstract away the yield or offer leverage, etc.Image
RIGHT NOW, you can LP $LRT2 against ETH and historically this has generated a very spicy yield.

7-Day Backtest in a wide range showing 256% APR

BUT, let me caveat this.

The APR is skewed by day-1 volume. The current 1-Day APR is closer to 40%, and this is more indicative of what we should expect moving forward.

h/t @okutrade for the stellar Uni V3 backtesting and analyticsImage
ALSO (I told you this thing really needed an explainer)

@LRTsquared will have their own token.

This token will be used for a lot of things.

➢ Whitelisting integrated assets
➢ Determining $LRT2GOV emissions
➢ Setting rate / risk parameters

And much more.

@MikeSilagadze explained this really well in a recent interview
But the existence of an LRT2 governance tokens also means points and a potential airdrop.

SO ALL OF THE STUFF that I mentioned above about
• Value Alignment
• Minimizing Transactions
• Reducing Token Dumping

Is additionally incentivized by a potential airdrop from @LRTsquared and potentially by future emissions from the protocol.
This is all to say,

LRT2 is going to be everywhere.

Most modular protocols in EVM will be using it to avoid undue sell pressure on their native asset.

On top of that:
• it will have yield
• it will have composability
• it will potentially have an airdrop
• it will act as an index

AND it will act as a new incentives paradigm in DeFi. Aligning a plethora of like-protocols under one umbrella emissions.

THIS, if nothing else, is incredibly exciting.Image

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More from @phtevenstrong

Oct 13
Comparing Lend Aggregators

Lend aggregators are one of my favorite yield sources specifically because they allow a user to:
⇒ get yields with no IL
⇒ remain fully liquid
⇒ remain unleveraged

..and sometimes farm points

SO, let's look at the best out there and compare
🧵👇Image
1) @summerfinance_

SummerFi "Lower Risk" vaults do lend aggregation, tapping into an AI-driven optimization mechanism, currently the beneficiary of @arbitrum's DRIP campaign.

APR: 11.7% + $SUMR

For more $SUMR:
summer.fi/earn?referralC…Image
2) @Almanak__

Almanak is another soon-to-be AI-driven yield aggregator which is currently operating as a lend-agg.

It's primarily exposed to Morpho and Fluid at the moment, and because of its S1 points, has an IY of 24% on @pendle_fi.

Organic APR: 10.26%Image
Read 12 tweets
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One must heed the call.

🚨BEST STABLECOIN YIELDS OCT🚨

Let's see how many break 40% APR this time...

Bookmark for the culture.

🧵👇Image
1) @reservoir_xyz yields are remarkably slept on.

Remember, wsrUSD has no fee to redeem.

@MorphoLabs Loops:
► wsrUSD/USDT | Eth: 54% APR
► wsrUSD/USDC | Eth: 30% APR
► wsrUSD/pUSD | Plume: 53% APR

Season 1 was one of my better airdrops this year. Looking forward to S2!Image
2) @kamino et @maplefinance

TWO THINGS.

a) CASH (stablecoin from @phantom) has incentives for borrowing
b) USDG has a low borrow cost

As a result, you get a
❧ 30% APR loop with USDG
❧ 114% APR loop (soon to dilute, surely) with CASHImage
Read 13 tweets
Oct 6
You heard the man.

🚨BEST NON-LEVERAGED YIELDS OCTOBER🚨

BTC, ETH, and Stables

A thread🧵👇
1) Best Lend Agg for DRIP: @summerfinance_

To best farm @arbitrum DRIP incentives without leverage, SummerFi's low-risk vault is top-notch.

➢ 13% base APR, exit anytime.

Get more SUMR emissions if you use a ref link:
summer.fi/earn?referralC…Image
2) @pendle_fi

BE CAREFUL with things like USDai, whic 4-5% overpeg. I love USDai, but a repeg would hurt people who enter here.

Some good ones:
@gaib_ai 34% for 23 days
@Almanak__ 28% for 16 days
@re 20% for 72 days
@StreamDefi 17% for 72 daysImage
Read 15 tweets
Sep 23
I CANNOT LET THIS GO UNANSWERED!

There are some new ones, so bookmark this for reference.

🚨BEST STABLECOIN YIELDS, SEPT 2025🚨Image
1) Aavethena

This is still a huge winner.

It's fairly simple, just have more sUSDe collateral than USDe collateral and be borrowing at least half the amount of your collateral value.

3x Leverage: 17% APR
5x Leverage: 23% APR
10x Leverage: 40% APR

And it can handle size.Image
2) @reservoir_xyz looping 😤

wsrUSD has a base yield of 12% APY,
You can loop this all over EVM chains

@MorphoLabs:
Ethereum (USDT): 10x, 61% APR
Ethereum (USDC): 10x, 42% APR
Katana (vbUSDC): 10x, 95% APR
Plume (pUSD): 10x, 71% APR

Plus S2 points (S1 was an amazing airdrop) Image
Read 15 tweets
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Mert, it's 12AM here. Why would you do this to me?

And you never like my posts either. This is why the bald community can never get ahead.

🚨BEST STABLE YIELDS ON @solana🚨
1) @maplefinance on @JupiterExchange

Looping against USDG (Paxos issued) generates 21% APY.

Cap is almost hit, so if you want to get in, there is a sense of urgency. Image
2) Bashful USD on @ExponentFinance

This is @hylo_so's shyUSD, which is the wrapped stability pool for their native stable.

17% fixed rate APY for the next 63 days. Image
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Be productive. Every moment you waste is your enemy's gain.

Bookmark to outyield your foes.

🚨BEST ETH YIELDS, SEPTEMBER EDITION🚨Image
1) @summerfinance_

One of my favorite lend agg vaults is ETH Low Risk.

Not only do you get a great set-and-forget 4%, you also get $SUMR tokens, which should be live in the next 1-2 months.

The major benefit is that you can withdraw at any time and not worry about unstaking. Image
2) @Mantle_Official's @MerchantMoe_xyz

I've talked about this before, I still love it.

The whole LFJ stack does a great job of showing the average APR and not just single-tick APR.

cmETH - WETH is currently STILL getting 10% average APR, plus additional yield from cmETH.Image
Read 9 tweets

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