Cega, Pendle, and Ether.fi Build Restaking Product using Yield Token for Over 107x Points Exposure
Singapore, Singapore, July 9th, 2024, Chainwire
Cega, Pendle, and Ether.fi are thrilled to announce the launch of “Pendle Ether.fi YT Tiger” today. This marks a significant step forward in DeFi innovation. By utilizing Pendle’s Yield Tokens (YT), Cega created the first ever utility for YT beyond traditional point holding.
DeFi users who engage in liquid restaking on Ether.fi and points farming with Pendle YT-eETH can now restake their YT-eETH in Cega to make competitive APY, paid in YT-eETH. Users also get over 107x points exposure to EtherFi points via a special Cega 3x multiplier.
Cega’s product was developed for users who hold YT or who engage in points farming who want the opportunity to gain points exposure from restaking YT-eETH into Cega. “This strategy is creating a novel yield opportunity for the billion dollar restaking ecosystem and fast-growing YT marketplace”, commented Mike Silagadze, co-founder of Ether.fi.
DeFi Building Blocks
EigenLayer introduced restaking by allowing users to stake ETH or LSTs for yield on top of existing yield. Ether.fi built on top of this base model and delivered a product with three potential income streams – staking, restaking, and yield farming – called eETH.
Pendle took this development further, creating Principal Tokens (PT) and Yield Tokens (YT) that split the yield from the underlying principal. YTs represent a claim to potentially probable future yield. Combined with points programs launched by top protocols, “YT allows users to gain significant exposure to points through leverage, and the Cega product creates a strong opportunity on top of this” explained TN, co-founder of Pendle.
Pendle, Ether.fi, and Cega’s Innovation
This triple-protocol innovation was a collaboration between Pendle, Ether.fi, and Cega. The teams at Pendle, Ether.fi and Cega saw a gap in the market to create greater utility for restakers and points farmers.
These users today face a number of competing alternatives fighting for their attention and wallet. The launch of the Pendle Ether.Fi YT Tiger pushes the boundaries on DeFi innovation by making YT ownership beneficial beyond just holding until its price reaches zero, and to explore new ways of building atop the liquid restaking ecosystem.
Yield and Points Exposure
YT-eETH users who restake in Cega have the opportunity to earn competitive APY, paid in YT which allows users to get more points leverage. Additionally, staking in Cega gives users over 107x points exposure to EtherFi points via a special Cega multiplier.
Users will be able to see the points accumulated via Ether.fi’s DeFi tab.
How It Works
The “Pendle Ether.fi YT Tiger” trades a structured investment strategy known as “Dual Currency Swap” (DCS). Users can deposit YT to possibly make more YT by using this strategy. The vault is configured with a 90% strike level linked to YT-eETH’s forward price.
When the vault expires on Day 27, users are paid yield in YT-eETH if the price of YT-eETH remains below the strike. If prices trade at/above strike, investors can take a profitable exit paid in weETH.
The following YT tokens are available for deposit on launch:
- YT-eETH-Sep24 / weETH
- YT-eETH-Dec24 / weETH
Key Benefits
- Utility on YT: For the first time, users can restake their YT to earn real yield
- Strong APY: Users can achieve a yield on YT to capitalize on the value of YT tokens and points
- Points Multiplier: Over 107x points exposure to EtherFi points by staking YT in Cega, depending on the current value of the YT, and even more with APY paid out in YT
- Currency Pair: Opportunity to maximize YTeETH or eETH holdings with this strategy
- Market Direction: the Dual Currency strategy allows investors to earn yield whether YT-eETH prices move up or down.
About Cega
Cega is a DeFi structured investments platform that tailors TradFi’s powerful investment strategies for the DeFi marketplace. The project is responsible for nearly $500 million worth of transactions.
The protocol prioritizes transparency, security, accessibility, and high-yield opportunities and represents the leading platform in the next evolution of DeFi.
They are backed by top investors, including Dragonfly Capital and Pantera Capital.
For more information, users can check Cega’s website as well as its Discord and X page.
About Pendle
Pendle is the largest yield swap protocol for term rates and yield trading in DeFi. Pendle’s adoption as a DeFi primitive has been growing across protocols, individuals, and institutions, allowing access to deterministic yields and the ability to hedge and speculate on yields.
Recently, Pendle’s growth has seen great success by replicating the yield-trading market into the points-trading market. This enables them to speculate on points or obtain a high fixed yield by forgoing points exposure.
About EtherFi
Ether.fi is a decentralized staking protocol designed to help Ethereum stakers optimize their reward potential. Like liquid staking protocols such as Lido, the platform allows users to stake ETH or liquid staking tokens (LSTs) and, in return, receive an asset called eETH. This eETH can be utilized in DeFi for yield-generating opportunities.
A distinguishing feature of Ether.fi is its implementation of native restaking through EigenLayer tech. This addition provides an extra reward stream, enhancing user returns. Ether.fi aims to make the staking process more accessible, lucrative, and authentically decentralized.
Cega, Pendle, and Ether.fi are the source of this content. This Press Release is for informational purposes only. The information does not constitute investment advice or an offer to invest.