Lido Introduces stRATEGY Vault, Offering Curated DeFi Exposure Focused On stETH

In Brief

Lido has launched the stRATEGY Vault, allowing users to gain diversified DeFi exposure centered around stETH with simplified management, enhanced rewards, and Mellow point accrual.

Decentralized finance (DeFi) platform, Lido introduced the stRATEGY Vault, designed to offer a simplified method for gaining diversified exposure to select DeFi opportunities centered around stETH. This new offering allows users to make a single deposit, which the vault then manages, including allocation, monitoring, and rebalancing, through the Earn feature at stake.lido.fi. The stRATEGY Vault utilizes the Mellow Core Vault stack.

The focus of stRATEGY is on integrating well-established, liquid protocols that may adapt over time. Currently, the vault’s strategy includes lending, looping, and liquidity provision, with integration across protocols such as Aave, Ethena, and Uniswap. The protocols included are carefully chosen to support and expand the stETH ecosystem, and the specific mix may shift in response to changes in market conditions and risk factors.

According to Lido, in order to use stRATEGY, users must visit stake.lido.fi/earn/strategy, connect their wallet, and deposit ETH, WETH, or stETH. If depositing stETH, users must first convert it to wstETH at stake.lido.fi/wrap. After the deposit, users will receive strETH tokens that represent their share of the vault. These tokens will accrue DeFi rewards based on the vault’s strategy, while also earning Mellow points proportional to the user’s strETH holdings and their duration in the vault. When users wish to exit their position in Lido stRATEGY, they can withdraw their strETH tokens and convert them back to wstETH.

stRATEGY Vault Goes Live With Enhanced Rewards And Mellow Points Accrual For DeFi Users

Addresses that hold strETH tokens will accumulate Mellow points based on the amount of staked value and the duration in the vault. The current accrual rate is 0.00025 points per $1 of value per hour, with points credited on an hourly basis. However, during the initial four-week period following the vault’s launch from November 6th to December 3rd, the accrual rate will increase to 0.00075 points per $1 of value per hour.

The vault imposes a 1% annual platform fee based on assets under management, which is prorated over time, as well as a 10% performance fee on rewards, paid to Mellow. Both fees are factored into the strETH price, rather than being directly deducted from token balances.

stRATEGY is part of the Earn suite of vaults, designed to expand access to advanced DeFi strategies and enhance decentralization. In contrast to stRATEGY, the GG Vault (GGV) focuses on reliable, well-established strategies using leading DeFi protocols to maximize rewards on ETH or (w)sETH deposits. Meanwhile, the Decentralized Validator Vault (DVV) emphasizes staking rewards enhanced by Distributed Validator Technology (DVT), which supports Lido’s node operator decentralization efforts.

stRATEGY offers users a distinctive opportunity to earn enhanced rewards through a targeted DeFi allocation, while also gaining additional Mellow points. It provides a flexible, plug-and-play approach to leading DeFi protocols, requiring no additional technical setup. Additionally, it offers a way for users to diversify their exposure to various vault strategies within the Earn ecosystem. By exploring all the available options within Earn, users can choose the strategy that best aligns with their objectives.