Cega, Pendle, and Ether.fi Build Restaking Product using YT for 107x+ Points Exposure
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 17.80% APY paid in YT-eETH. Users also get 107x+ exposure to EtherFi points via a special Cega 3x multiplier — and even more with other Etherfi perks such as Perks Passport. Note that the exposure amount is subject to current YT prices.
Cega’s product is ideal for users who hold YT or who engage in points farming who want to gain significant 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 novel product with three 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 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 significantly 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 can now earn a strong 17.80% APY, paid in YT which allows users to get more points leverage. Additionally, staking in Cega gives users 107x+ 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 popular structured investment strategy known as “Dual Currency Swap” (DCS). Users deposit YT to 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 take a profitable exit paid in weETH and will also earn yield.
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 an impressive 17.80% APY on YT to capitalize on the value of YT tokens and points
- Points Exposure & Multiplier: get 107x+ 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
- Desirable Currency Pair: maximize YTeETH or eETH holdings with this strategy
- Yield Earned Regardless of 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, check out 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 everyone 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.
