Leverage Vaults

4xWBTC & 4xweETH

Overview

Ebisu Leverage Vaults let users of any size get leverage exposure to BTC, ETH, and other collaterals in one-click.

Automated 4x leverage trading of WBTC and weETH. Deposit your tokens, receive vault shares representing amplified collateral exposure. No manual management required.

Who Is This For?

  • Users seeking instant one-click leveraged BTC or ETH exposure

  • Users who want fixed-rate leverage without active management

  • Users seeking automated liquidation protection

Why?

Managing your own leveraged Trove requires minimum 2000 ebUSD debt, active LTV and rate monitoring, and manual rebalancing.

Depositing and withdrawing into Leveraged Vaults is the smoothest way to leverage trade BTC & ETH without active management, while taking advantage of Ebisu’s user-set fixed interest rates that minimise position funding costs.

How?

Trove Wrapper:

  • Ebisu Leverage Vaults are ERC4626 vaults that wrap a single leveraged Trove position.

  • Users deposit collateral such as WBTC or weETH and receive vault shares representing their proportional claim on the trove's net equity (collateral minus ebUSD debt in collateral terms).

Deposit/Withdrawal:

  • Vault supports instant deposit and withdrawal.

  • On deposit, the vault adds the collateral to its Trove and executes a leverUp flash loan to maintain the target leverage.

  • On withdrawal, it leverDown to repay proportional debt, then withdraws the user's collateral share.

Target Leverage Rebalancing:

  • A permissionless rebalance() function adjusts leverage when it drifts beyond +-5% from target (eg. above 4.2X or below 3.8X.).

  • Gas costs are paid by the caller.

  • Slippage is checked against oracle price with a 2% max slippage tolerance to protect against low-liquidity conditions.

  • Ebisu runs a rebalancing bot.

Risks

The vault maintains a single leveraged Trove. Ebisu’s rebalancing bot calls the permissionless rebalance() function as the collateral price fluctuates, significantly reducing liquidation risk. Though if collateral value falls far enough to breach the Trove’s liquidation threshold, the position may be liquidated, resulting in loss of capital.

User Guide

  1. Deposit your WBTC or weETH into the vault

  2. Vault borrows ebUSD and swaps it for more collateral (creating 4x exposure)

  3. Withdraw anytime for your net equity in collateral.

Shares represent your ownership of the vault. The share's dollar value reflects changes in net equity from leveraged exposure to the underlying assets price and accrued collateral yield and interest.

Vault Configurations

Audit

Audited by Shepherd Securityarrow-up-right. The codebase underwent both automated adversarial testing and manual review by an independent security researcher.

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