Insider Trading

LENDING RESTAKING: THE NEXT EVOLUTION IN DEFI

Inspired by the #EigenLayer restaking model, imagine the same concept applied to lending protocols like #aave.

Lending Restaking allows users to maximize yield by leveraging unused borrow power across multiple platforms in the most efficient way possible.

With Lending Restaking, lenders can reinvest their positions while simultaneously allocating credit to borrowers, optimizing both sides of the transaction.

This idea taps into new yield opportunities on protocols like @morpho and Aave, creating double-layered returns:

- Primary lending yields.

- Bonus third-party yields.

Earn, Borrow, Build on Morpho 
/morpho and app.morpho.org

In short, Lending Restaking automatically optimizes yield across multiple protocols, ensuring users always get the best rates.

👉 Example: A user deposits 1000 USDC on Aave, earning a 7% APY. By restaking that position, they can earn an extra +3% to +5% from the Lending Restaking Protocol, bringing the total APY to 10%+.

This takes advantage of the basic yield from $AAVE and boosts it by tapping into unused borrowing power for additional returns.

The Lending Aggregate mechanism takes it a step further:

- Deposit on Morpho.

- Borrow from Aave.

- Optimize yield through protocol arbitrage.

This creates an arbitrage opportunity between lending platforms:

- For instance, borrowing USDC on Aave at 10% APY while supplying USDC to Morpho at 13% APY. With a 90% LTV, your net APY becomes 4% — and using max leverage (10x), you can hit up to 40% net APY.

No more being stuck with just LST, LRT, or PT. With Lending Restaking, your options are limitless as different lending protocols come into play.

What makes Lending Aggregate even more powerful? The risk of liquidation is reduced because both debt and collateral tend to follow the same price trend, especially if you're collateralizing with the same token you’re borrowing.

Benefits all around:

- #MorphoLabs: Lenders can now borrow against their deposits.

- #aave: Lenders keep earning yield from Aave while capturing bonus yields through arbitrage between platforms.

The brains behind this next-gen concept? #246_club, pushing the boundaries and unlocking a new investment frontier.

Whether Lending Restaking creates a token and becomes the next trend in DeFi remains to be seen, but the financial potential is undeniable. This model adds diversification and optimization to the DeFi space.

Here’s the alpha: $MORPHO is an undiscovered gem in the DeFi space. The potential? Huge. This new model could be the catalyst that takes Morpho - and your yields - into overdrive. If you’re not paying attention, you’re already behind. @morpho is seriously undervalued right now. 

cc: @merlinegalite @paulframbot