Leveraged LST

The Leveraged LST vault strategy allows anyone to earn additional yield on their liquid staking token holdings (like HBARX) by depositing them into this vault strategy type.

Under the hood, Leveraged LST strategy vault operations include the following transactions and protocols:

1. User deposits liquid staking tokens (LSTs), such as HBARX, into the vault.

2. The vault routes and supplies this token (as collateral) to the Bonzo Lend protocol.

3. The vault borrows the LST's underlying base asset from Bonzo Lend (such as HBAR).

   1. With a low loan-to-value ratio, bolstering additional prevention of liquidation.

4. The vault stakes the borrowed funds (base asset) for more LSTs via a staking provider protocol.

5. The vault supplies those LSTs to the Bonzo Lend protocol.

During withdraw from a Leveraged LST strategy vault, the operations cited above are performed in reverse — however, instead of un-staking the LST for the underlying base asset, the LST is swapped, using SaucerSwap, to circumvent cool-down periods employed by liquid staking token providers.