Thetanuts Finance: Partnering with Pendle to bring Additional Sources of Yield to PT-eETH

Today, we’re delighted to announce that we have integrated Pendle’s $PT-eETH offering to create a Leveraged LRT Strategy Vault on Ethereum Mainnet — marking Thetanuts Finance’s first foray into restaking and LRTs, a core DeFi primitive with >$10bn in TVL today.

Pendle currently generates the highest fixed yield for $ETH in the market via $PT-eETH at ~20%, while providing certainty in returns. With the Thetanuts Finance Leveraged LRT Strategy Vault, we intend to drive these yields even higher for users.

Restaking Landscape

Restaking is a new primitive introduced by EigenLayer, and is one of the fastest growing sectors in DeFi today — with >$10bn in TVL. Restaking enables staked $ETH to be used to secure other networks, in exchange for additional restaking yields. To participate in restaking — users either restake directly on the EigenLayer app, or use a liquid restaking protocol like EtherFi. Users that participate in liquid restaking protocols generate a Liquid Restaking Token (“LRT”), while also accessing multiple sources of yield.

EtherFi is the leading LRT protocol by TVL, with >$2.5bn in TVL. Users on EtherFi can deposit $ETH, $stETH, $cbETH, $bETH to mint $eETH — an LRT that grants users:

• EigenLayer Points
• Protocol Points (i.e. EtherFi Loyalty Points)
• Additional yield from using LRTs in DeFi (i.e. on Pendle)

Pendle seeks to take $eETH yields one step further, by allowing users to split $eETH into $PT-eETH and $YT-eETH.

• $PT-eETH: Foregoes $eETH yields and points for a fixed yield, and is redeemable for 1 $eETH at maturity. $PT-eETH currently trades at a ~20% fixed APY.
• $YT-eETH: Leveraged exposure to $eETH yields and points streamed to holders perpetually until maturity. YT decays to no value at maturity. $YT-eETH currently accrues 40x EtherFi points, and 20x EigenLayer points.

Thetanuts Finance $PT-eETH LRT Vaults

With our mission to bring decentralized on-chain altcoin options to users, Thetanuts Finance will be integrating Pendle’s $PT-eETH to create a Leveraged LRT Strategy Vault on Ethereum Mainnet.

This is how it works:

• On the Thetanuts Finance user interface, a user will “Zap” their $PT-eETH.
• $PT-eETH is deposited into the Thetanuts Finance v3 Lending Market, and $ETH is borrowed.
• $ETH is deposited into the $ETH-C Basic Vault, generating additional Basic Vault Option Premiums.

Our Leveraged LRT Vault allows $PT-eETH to generate additional sources of yield — where $PT-eETH would have otherwise not had any additional use cases, aside from waiting for maturity. With the Leveraged LRT Strategy Vault, users will now be able to generate up to 3 sources of yield: Pendle $PT-eETH Fixed Yield, Thetanuts Finance $ETH-C Basic Vault Option Premiums, and $NUTS Rewards.

While the Leveraged LRT Strategy Vault will first be on Ethereum Mainnet, we will soon bring these products to Arbitrum!

Conclusion

If you’re as excited about restaking as we are, head to the Thetanuts Finance user interface to try out our Leveraged LRT Strategy Vault on Ethereum Mainnet! Please feel free to reach us on our Twitter and Discord, and stay tuned for upcoming updates!