Leverage Tokens are now live on @ethereum Mainnet, bringing one-click leverage strategies to DeFi’s deepest markets - powered by @MorphoLabs 🦋. This could impact roughly 20% of DeFi TVL. Here's how: 🧵 /1

Over $120B in DeFi liquidity flows through lending protocols. By some calculations, 20% of this liquidity is manually looped to reach a leveraged position. Manual leverage is: 🕐 Time-consuming ⛽ Expensive 🔁 Stressful Leverage Tokens fix this. /2

In their first form, Leverage Tokens take yield-bearing assets and automate the looping process. Anything that earns yield and has a lending market can become a Leverage Token -- opening endless possibilities for strategies and amplified returns. Excited to introduce the two Leverage Tokens now available on Mainnet (with many more to come)! 👇 /3

First up is the RLP/USDC Leverage Token. This LT pushes @resolvlabs RLP yield further. The new RLP/USDC Leverage Token targets a 6.75x ratio -- higher than most DeFi platforms. This LT's leverage and strategy parameters were analyzed carefully and backtested to optimize for onchain looping behavior. Check it out here: /4

These backtested results of the RLP/USDC LT highlight its performance vs simply holding RLP. /5

Next up is a wstETH/ETH Leverage Token with @LidoFinance. Maximize ETH staking yield. The wstETH/ETH 25x Leverage Token delivers the highest leverage on Mainnet, optimized to rebalance and capitalize on staking rewards. Check it out here: /6

Backtesting shows the wstETH/ETH Leverage Token delivering stronger performance than a simple wstETH hold. /7

Thank you to our many partners helping bring Leverage Tokens alive! w/ audits from @cantinaxyz and @sherlockdefi ✅ Plus an ongoing live bug bounty with Sherlock 👾 @MorphoLabs @LidoFinance @ResolvLabs @ether_fi @gauntlet_xyz @spectra_finance @JumperExchange @base @pendle_fi @ethena_labs @MEVCapital @GetYieldFi @hyperithm @maplefinance @k3_capital @OriginProtocol @reserveprotocol @summerfinance_ @autopools @superformxyz @beefyfinance @harvest_finance @gizatechxyz /9

TradFi is already obsessed with Leverage. Let's scale it efficiently onchain. This is only the beginning. Leverage Tokens are permissionless, unlocking endless new strategies ahead. Simpler. Smarter. Seamless. /10