FAQ
Cian is a DeFi protocol. With the stETH/ETH leveraged staking strategy, Cian helps users maximize collateral yields.
When Cian executes the leveraged staking strategy, a transaction generally contains the following steps:
For this example, let's assume that the leverage is 7x, that we have 10 ETH, and that the exchange rate between stETH and ETH is 1.
1. Stake 10 ETH in Lido to get 10 stETH and passive staking yields, or swap ETH for stETH on 1inch. Cian will automatically select whichever way is more cost-effective
2. Deposit stETH in AAVE lending market
3. Flashloan 60 ETH from Balancer (leveraged 7x)
4. Stake (or swap) the flashloaned 60 ETH in Lido to get stETH, thus getting extra staking yields
5. Deposit the extra 60 stETH in AAVE V2 lending market
6. Use 70 stETH as collateral, and borrow 60 ETH to repay the flash loan
Leveraged staking supports both stETH & ETH as a principal. If you deposit stETH, the system will automatically skip the first step.
Please note that when you use such a leveraged strategy, it's normally advised to hold that position for a certain amount of time. By doing so, you'll have enough time to cover your redemption cost with a high APY.
When closing the position on Cian with such a leveraged staking strategy, you'll need to pay 0.05% of your position as the management fee for Cian.
Cian will periodically reserve about 100 stETH for you to redeem. In this way, there'll be no other losses than the management fee.
If you intend to redeem the amount of stETH that exceeds the total amount available for redemption, you'll need to visit Cian's official website and complete the deleveraging process. Please note that there may be additional losses from the transaction fee during deleveraging and swap losses between stETH/ETH on DEX in addition to the management fee.
Also, when redeeming from Cian, you can redeem stETH first to get the maximum amount.
If you’re unable to redeem via Earn, this means there are no sufficient assets available for withdrawal. That’s because most deposited stETH has been leveraged to generate higher yields. Although redemption via Earn isn’t possible, the assets are still held in your smart contract in Cian and are safely generating yields. Also, Cian will supplement stETH for you to redeem every day. So there’s no need to worry about not being able to redeem.
If you still intend to redeem the amount that exceeds the amount available for redemption, you’ll need to visit Cian’s official website and click “Withdraw” to start redeeming. During the process, operate with caution to control the risk of your loss:
https://vault.Cian.app/vaults/detail/0xcDd374F491fBF3f4FcF6E9023c99043774005137
