[Re7 WETH] Re7 WETH Vault Updates Thread

Re7 WETH Vault Update

TLDR: We review the first weeks of the Re7 WETH Vault and present further plans for asset onboarding. We will use this thread for ongoing updates on the vault and cap changes.

The Re7 WETH Vault was launched at the start of February, with initial assets of Ether.fi’s weETH and Stakewise’s osETH.

Since then the vault has grown to over $12m TVL in supply deposits, supporting Morpho Blue markets with a combined TVL of over $15m. Currently the Re7 WETH vault is the third largest MetaMorpho vault and the second largest ETH-denominated vault.

Some highlights since the vault deployment:

  • The vault added over 1,000 ETH supply within 30 days of deployment and has continued to grow with sizable deposits.
  • The vault supply has enabled attractive leverage opportunities for LST and LRT holders. Borrow utilization on the underlying markets has remained elevated and sits now at over 90%.
  • Shortly after launch the vault onboarded and seeded a new market for ezETH/WETH which now has over $7m borrowed.
  • Base supply yields in the vault have remained well above ETH staking rate with LRT collateral supporting high borrow rates.
  • Incentives provided to all markets have added to depositor yield, with supply earning a combination of USDC, SWISE, Ether.fi points, Renzo points and Morpho tokens.

We’re excited to continue growing the vault and enabling additional WETH markets against high yielding ETH-denominated assets.

Adding apxETH Supply Cap

Re7 Labs will submit a cap of 750 WETH to Re7WETH for the apxETH (86%) market to continue to expand the vault allocation to Liquid Staking Tokens.

Redacted’s Dinero protocol combines a tested split-token mechanism with the deep voting power of Redacted protocol to deliver apxETH, which has outperformed yield of other LSTs on the market.

Adding apxETH to the Re7 WETH vault will allow for more diversified LST exposure and continue to maintain high yield with borrow demand from the high-yielding apxETH LST. Redacted has also pledged $75k BTRFLY of incentives to bootstrap supply liquidity.

Market Parameters

Loan token: WETH - 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2

Collateral token: apxETH 0x9Ba021B0a9b958B5E75cE9f6dff97C7eE52cb3E6

Oracle: Morpho Chainlink - 0x037D67A5E6F19d0Fb26A6603d2D4fE9d70eC3258

IRM: Adaptive Curve IRM - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

LLTV: 86%

Listing Parameters

SupplyCap: 750 WETH