Introducing ETHphoria Vault

The Perfect Strategy for Bullish ETH Holders

We are thrilled to unveil Pods Yield’s new strategy: the ETHphoria Vault 🔥

This low-risk, principal-protected strategy is designed specifically for individuals with a bullish outlook on the market. By integrating Lido with call options, ETHphoria enables users to reap greater rewards as the market skyrockets 🌝.

How does ETHphoria work?

Upon depositing ETH* or stETH, the vault utilizes 100% of Lido’s weekly staking rewards to purchase call options with a 1-week expiry. If prices soar by over 20% within a week, the call options are exercised, and depositors enjoy the resulting profits. Importantly, the principal remains untouched in this strategy.

* If users deposit ETH, the vault will swap the ETH for stETH via Curve’s pool.

Who is this product for?

ETHphoria is the ideal strategy for those who are optimistic about ETH and wish to earn more with increasing prices by maximizing exposure and potential profits.

Live on Mainnet

ETHphoria vault is live on Mainnet 🎉

https://app.pods.finance/

There is a 500 ETH TVL cap at the moment.

Strategy backtest

If this strategy was available when ETH started in 2015, how well would it have done until now?

The graphs below detail the vault’s performance with each exercise relative to simply depositing into Lido, the base strategy.

The exercise profit amount is incorporated into the initial deposit, and the subsequent week’s yield is compounded on top of the newly combined sum.

Please note that past returns do NOT guarantee future returns.

Both scenarios consider the same base yield (current Lido's APY) of 4.90%, the same 10% of management fee on weekly yield, and 10% performance fee on options exercises. Also, both scenarios consider an initial deposit of 500 ETH.

Scenario 1:

• DVOL (IV) assumption = 80%
• Buying 20% OTM calls

Scenario 2:

• DVOL (IV) assumption = 90%
• Buying 20% OTM calls

Scenario 3:

• DVOL (IV) assumption = 70%
• Buying 20% OTM calls

Product Values

Consolidating a single strategy into one token is crucial not only for DeFi composability but also for user convenience. Users can effortlessly transfer deposits between addresses, use them as collateral on other protocols, and readily verify their holdings in a specific strategy. Furthermore, the vault provides:

• Access to intricate strategies with a single click
• Withdrawal at any point after processing the deposit
• Display of actual historical returns

Risks Review

ETHphoria uses Lido as a primary yield source. Lido is a decentralized staking protocol that allows users to stake their ETH and receive ETH 2 rewards.

Lido has wide use among the DeFi community, with a TVL of more than 11.8 billion USD. Just like any other DeFi protocol, it is not free of risks.

Our understanding of Lido’s risks are:

• Governance attack
• Protocol level risk
• Smart contract exploit or bug
• ETH and stETH market’s illiquidity could trigger a wide depegging

Using Pods Yield entails that users understand and agree with the risks of Pods as a protocol and all the underlying protocols.

In addition to Lido’s risks, there are risks related to Pods protocol that could affect the vault’s funds. Our understanding of the current risks on Pods are as follows:

• Centralization risk
• Protocol level risk
• Smart contract exploit or bug

In its initial version, the vault is continually evolving, with certain manual functions being improved. We are implementing measures to limit our access to the vault’s funds, such as:

• The investor contract can only interact with the yield generated by the vault per week;
• The investor contract is held in a 2/5 multisig.
• The withdrawal fee is currently 1% and is limited to 10% at max;
• The admin keys do not have access to users’ funds however it can pause the system, preventing users from withdrawing during that period.

Contracts

The vault has undergone four audits by leading audit firms, including OpenZeppelin and ABDK. Audit reports are available at https://github.com/pods-finance/yield-contracts/tree/main/audits.

Our open-source contracts can be reviewed at https://github.com/pods-finance/yield-contracts.

The Pods Yield product also went through a review with DeFi Safety where it received a 97% score. You can find the detailed report at https://defisafety.com/app/pqrs/539

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We’re looking forward to hearing from you!

About Pods

Strategies, vaults, primitives, or tooling. We are building DeFi as we would like to use it.

Check out the app at https://app.pods.finance/

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