Use Euler to allow looping strategies on reth yield
Recommendation: Use Euler to facilitate leveraged strategies on rETH, or in other words, engage in looping with rETH and ETH. Euler allows for free creation of vaults.
Looping consists of depositing rETH on Euler, borrowing ETH, swapping the borrowed ETH for rETH, and repeating these steps through multiple cycles to maximize rewards.
A high Loan-to-Value (LTV) ratio is necessary to enable greater leverage.
Benefits: This strategy increases the demand for rETH.
Drawbacks: If a large position is liquidated, the sale of rETH could affect its peg.
Notes:
Help about Euler Vault Creation : Anthias Labs Offering Risk Support to Euler Vault Creators - Risk - Euler Governance Forum