wstETH/ETH 25x

• Token Symbol: WSTETH-ETH-25x

• Token Name: wstETH / ETH 25x Leverage Token

• Collateral: Lido's wstETH

• Borrowed Asset: WETH

• Borrow Market: Morpho wstETH/WETH market LLTV: 96.5 Oracle: Chainlink adapter for wstETH/stETH exchange rate. Points to Lido’s own exchange rate onchain which uses their own oracle that reports validator ETH balances. IRM: AdaptiveCurveIRM

• Target Leverage (Target Collateral Ratio): 25x (1.041666667)

• Min Leverage (Max Collateral Ratio): 24.98x (1.041701418)

• Max Leverage (Min Collateral Ratio): 25.3x (1.041152263)

• Mint Token Fee: 0%

• Redeem Token Fee: 0%

• Dutch Auction Duration: 6 hours

• Dutch Auction Initial Price Multiplier: 1.01

• Dutch Auction Min Price Multiplier: 0.998

• Pre-liquidation Collateral Ratio: 1.038461538 (27x)

• Pre-liquidation Rebalance Reward: 0.318 (30% of Morpho liquidation penalty) For a 96.5 LLTV market the Morpho liquidation penalty is 1.06%, so pre-liquidation reward should be lower than this. See Morpho pre-liquidation repo for inspiration, https://github.com/morpho-org/pre-liquidation

• Strategy: Auto-looped exposure to wstETH for max points and rewards

• Use Case: For users seeking boosted yield and points without manual management

Risk Disclosures

Leverage Tokens are decentralized and permissionless. They are a set of smart contracts that tokenize a leverage position on a DeFi lending market (i.e.: Morpho). The smart contracts enforce a set of leverage invariants, they are not a centralized risk manager, they are designed to execute their defined logic but have no control over market conditions and depending on market conditions the Leverage Token may not be profitable. And as with any software there can be bugs

• Seamless smart contract risk

• Underlying lending market risk (Morpho in this case)

  • Chainlink oracle risk

  • Borrow rate risk (interest rate risk). If borrow interest rate of underlying market exceeds the yield of the collateral asset, this leverage token will have a negative APU

• Lido protocol risk, including validator slashing risk

• Leverage is inherently risky gains and losses are magnified