wstETH Moonwell

Stack Lido staking yield with Moonwell lending yield — WETH → wstETH → Moonwell

The WstETHMoonwellStrategy is a stacked yield strategy: it swaps WETH to wstETH via Aerodrome, then supplies wstETH to Moonwell’s lending market. The vault earns both Lido staking yield and Moonwell lending interest simultaneously.

Architecture

Yield Sources

Lido Staking

wstETH appreciates relative to ETH as Lido staking rewards accrue. This is embedded in the wstETH/WETH exchange rate.

Moonwell Lending

Supplying wstETH to Moonwell earns lending interest on top of the staking yield.

Lifecycle

Pending → execute() → Executed → settle() → Settled

Phase	What happens	Who calls
Execute	Pull WETH → swap to wstETH (Aerodrome) → mint mwstETH (Moonwell)	Governor (proposal execution)
Executed	mwstETH accrues Lido staking + Moonwell lending yield	—
Settle	Redeem mwstETH → swap wstETH to WETH (Aerodrome) → push to vault	Governor (proposal settlement)

Batch Calls

Execute

[WETH.approve(strategy, supplyAmount), strategy.execute()]

Settle

[strategy.settle()]

InitParams

struct InitParams {
    address weth;           // WETH token
    address wsteth;         // wstETH (Lido wrapped staked ETH)
    address mwsteth;        // Moonwell wstETH market token
    address aeroRouter;     // Aerodrome Router (for WETH ↔ wstETH swaps)
    address aeroFactory;    // Aerodrome Factory (pool lookup)
    uint256 supplyAmount;   // Amount of WETH to deploy
    uint256 minWstethOut;   // Min wstETH from WETH→wstETH swap (slippage)
    uint256 minWethOut;     // Min WETH from wstETH→WETH swap on settle (slippage)
    uint256 deadlineOffset; // Seconds added to block.timestamp for swap deadlines (default: 300)
}

Tunable Parameters

The proposer can update slippage parameters in both Pending and Executed states (unlike other strategies which only allow updates while Executed):

Parameter	Description
minWethOut	Minimum WETH from wstETH→WETH swap on settlement
minWstethOut	Minimum wstETH from WETH→wstETH swap on execution
deadlineOffset	Swap deadline in seconds from current block

strategy.updateParams(abi.encode(newMinWethOut, newMinWstethOut, newDeadlineOffset));
// Pass 0 to keep current value

Allowing param updates in Pending state lets the proposer adjust slippage before execution — useful if the WETH/wstETH rate shifts during the voting period.

CLI Usage

sherwood strategy propose wsteth-moonwell \
  --vault 0x... \
  --amount 1 \
  --slippage 500 \
  --name "wstETH Yield Stack" \
  --performance-fee 1000 --duration 7d

Flag	Description	Default
--amount <n>	Amount of WETH to deploy	required
--slippage <bps>	Slippage tolerance in basis points	500 (5%)

The CLI automatically calculates minWstethOut and minWethOut from the slippage value. Both are set to amount - (amount * slippage / 10000).

Allowlist Targets

sherwood vault add-target --target 0x4200000000000000000000000000000000000006  # WETH
sherwood vault add-target --target 0xc1CBa3fCea344f92D9239c08C0568f6F2F0ee452  # wstETH
sherwood vault add-target --target 0x627Fe393Bc6EdDA28e99AE648fD6fF362514304b  # Moonwell mwstETH
sherwood vault add-target --target 0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43  # Aerodrome Router
sherwood vault add-target --target <strategy-clone-address>                      # Your strategy clone

Addresses (Base Mainnet)

Contract	Address
WstETHMoonwellStrategy template	0x23d145Bd100599C7418164FEae235bcE391Ae032
WETH	0x4200000000000000000000000000000000000006
wstETH	0xc1CBa3fCea344f92D9239c08C0568f6F2F0ee452
Moonwell mwstETH	0x627Fe393Bc6EdDA28e99AE648fD6fF362514304b
Aerodrome Router	0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43
Aerodrome Factory	0x420DD381b31aEf6683db6B902084cB0FFECe40Da
Chainlink WSTETH/ETH feed	0x43a5C292A453A3bF3606fa856197f09D7B74251a