Yieldnest Restaking Rotator

MAX LRT Strategies
1

Strategy Name: IronClad ETH Vault (ynETHx)

Selected Category: ynETH MAX (ynETHx) – Ethereum-based strategies

IronClad ETH Vault is a security-first, principal-protected ETH restaking strategy that allocates to only high-liquidity, insured, and thoroughly audited protocols. It uses a real-time smart monitoring system to assess risk levels and auto-rotate assets out of risky positions while maintaining exposure to the top-performing LRTs like stETH, ezETH, and swETH. An embedded “Safe Mode” automatically converts assets to ETH or stablecoins if severe depegs or protocol threats are detected. It’s a yield strategy designed to never lose capital, making it ideal for conservative users or DAO treasuries.

PROTOCOL’S RISKS:

• Smart Contract Risks:
Risk from code exploits or bugs in restaking platforms; mitigated by integrating only audited protocols with live risk scoring and insurance (e.g., Nexus Mutual, Sherlock).

• Market Risks:
LST depegs and ETH price drops; managed via diversification across LSTs and auto-exit mechanisms if peg falls below 0.98.

• Operational Risks:
Governance delays or abrupt parameter changes; strategy includes governance alert system and pre-approved exit routes for each platform.

PROTOCOL’ S LIQUIDITY HISTORY:

• Current Liquidity:
Deep liquidity on LSTs: stETH ($20B+), swETH, ezETH, and liquid vaults on Balancer, Curve, and Pendle.

• Historical Performance:
Strong resilience during ETH crashes and LST volatility (e.g., 2022 stETH depeg recovery).
ezETH and swETH showed solid performance during EigenLayer scaling phases.

• Liquidity Disruptions:
Only minor issues during high-volume events; auto-routing through multiple DEXs and reserve liquidity pools to ensure exit efficiency.

REDEMPTION FLOWS:

• DETAILED FLOW:

  1. User requests withdrawal.

  2. Vault checks for slippage, peg status, and current exit conditions.

  3. If safe, vault converts LSTs to ETH via top DEXs or reserve vaults.

  4. Assets are sent to user wallet or held until conditions normalize.

• POTENTIAL ISSUES:
Temporary LST depeg or DEX slippage >2%; vault delays or exits partially using ETH reserves to protect value.

BEST CASE SCENARIO:
User redeems under normal market conditions with <1% slippage, with ETH delivered in minutes.

WORST CASE SCENARIO:
Market depegs LSTs or gas spikes; smart contract queues exit and notifies user, triggering auto-exit when safety thresholds return.

CONCLUSION
IronClad ETH Vault offers a battle-tested, zero-loss restaking strategy that expands YieldNest’s appeal to institutions, risk-averse users, and long-term ETH holders. It prioritizes principal protection, automated safety nets, and reliable returns, fully aligning with YieldNest’s goal to make DeFi safer, smarter, and more inclusive for all.

Submitted by: @welbina
X- @Saynototrenches

Date: 2025-04-12

2 Likes
2

I’m not sure if I misunderstood the project — could you confirm if it’s referring to Ironclad?
It seems that the biggest concern is that Ironclad still appears quite new, and its market size is still growing.
This means ynETHx likely cannot deploy a large portion of the strategy into it yet.

Currently, most of Ironclad’s TVL appears to be concentrated on the Mode network.
However, deposits and borrowing activities on Mode are currently paused.

It might be better to wait until the Mode network resumes operations before we revisit and re-evaluate this strategy.

1 Like
3

How much will the pullout cost be? How much to reenter once stablized? What happens if high volatility and geting auto pulled and reentered over and over?

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4

I like the over all idea since it’s basicly a piece of what i proposed, i like how many options there currently are for staking and restaking eth - definitely need some yieldnest postion built around it.

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