Pilot Vault - wstETH ↔ ETH Vault (AAVE v3)

The LTV Protocol's first production vault, the wstETH (Lido) ↔ ETH Vault, enables leveraged staking on Ethereum by combining Lido's liquid staking with AAVE v3's lending capabilities.

The wstETH ↔ ETH Vault is designed to maximize yield from Ethereum staking through leveraged positions while maintaining a constant target Loan-To-Value (LTV) ratio.

Vault Specifications

Launch Process

The wstETH ↔ ETH Vault follows LTV Protocol’s four-phase launch process: it begins with internal team capital to verify integrations and system stability, then expands to whitelisted private LPs to test scalability. Next, access opens to 42 NFT holders for controlled community participation. Finally, the vault becomes permissionless and public, with capacity scaling based on risk parameters and available AAVE v3 liquidity.

Rate-Risk Model

Even at maximum pool utilization, AAVE v3’s ETH borrow rate peaks around 10.6% APR.
At that rate, starting from 12× leverage, the vault would only approach liquidation after roughly 92 days without intervention.

This creates a significant safety buffer, giving sufficient time to rebalance, unwind, or deleverage before any critical thresholds are reached.
The vault's oracle setup further minimizes liquidation risk by using wstETH's redemption price (not market spot), making it resistant to short-term depegs or volatility shocks.

Dune Analytics

The wstETH ↔ ETH Vault is publicly monitored via a Dune Analytics dashboard that provides real-time insights into vault performance and metrics. The dashboard tracks key indicators including vault TVL (Total Value Locked), LTV ratios, vault token price, and token holder distribution, enabling transparent monitoring of vault operations and health.

Dashboard: wstETH-ETH x12 AAVE v3 Vault Dashboard

Stability and Backtesting

Historical simulations demonstrate consistent yield premiums and stability under changing rate conditions.
Since early 2023, while base ETH staking yield averaged ~3.48% APY, the same position with x12 leverage on AAVE v3 maintained an average yield of ~9.23% APY — roughly 2.6× higher than baseline staking performance.

This yield consistency across multiple market regimes validates the model’s resilience and sustainability as a foundation for subsequent vaults.

Addresses

Implementation

Core Contracts

Modules

Connectors

Libraries

Helpers