LRT Looping Strategy: Instadapp’s New Fluid Vaults for Levering Up on EigenLayer’s Launch 

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.

This week, we cover a looping strategy for LRTs, powered by Instadapp’s new flagship lending and borrowing protocol called Fluid.

Instadapp has long been a DeFi super tool–the ultimate hub for simplifying your DeFi journey and enjoying a safer, more accessible experience.

With Instadapp, you can leverage, refinance and migrate positions easily with built-in strategies, batching operations, and automation.

Today, Instadapp Pro, its legacy app, continues to manage nearly $3B across the most popular protocols in DeFi such as Maker, Aave, Compound, Liquity, Morpho, Spark, Curve, and Uniswap. Instadapp supports DeFi super-users across Ethereum Mainnet, Arbitrum, Optimism, Polygon, Avalanche, Base, and Fantom.

After 2 years of development, the cofounders of Instadapp launched Fluid, an advanced DeFi lending and borrowing platform offering high loan-to-value ratios, innovative liquidation mechanisms, and features like smart debt and collateral.

In summary, Fluid is what you get when 2 genius DeFi developers decide to design their own lending and borrowing protocol having done years of deep integrations for every major protocol, in order to ship a more secure, capital-efficient, and user-friendly DeFi experience.

Fluid is still in the early stages of its Ethereum Mainnet launch which kicked off in late February 2024, with a total market size today of $196M.

With Fluid, we can keep it simple and lend USDC, ETH, or USDT for the following rates.

Alternatively, we can borrow against this collateral with vaults