Overview

Earn is a set of deltra-neutral, dollar and ETH denominated vaults built on Theo. At launch, Earn vaults include Straddle USD and Straddle ETH. Both Straddle vaults utilize Hyperliquid and Aave to capture the funding rate for perpetuals contracts.

The vault contracts operate in 2 day rounds. Deposits and withdrawals are processed when the round rolls over.

Straddle USD maintains USD exposure.

Straddle ETH maintains ETH exposure.

Straddle

The basic mechanism of Straddle is as follows:

1. Users deposit USDC or ETH into the vault. Deposits are finalized at the start of the next round.

2. All deposits are swapped for spot ETH and supplied to Aave.

3. USDC is borrowed from Aave.

   1. Of this, a portion can be swapped for ETH depending on account healths and supplied back to Aave.

   2. The remainder is sent to Hyperliquid and used to short ETH with leverage.

4. As the ETH price fluctuates, Theo automatically rebalances collateral between the two execution environments.

5. At any time, users can initiate a withdrawal. At the start of the next round, a corresponding amount of strategy assets are returned to the vault and withdrawals can be completed.

Deposit Caps

Ethereum Mainnet

Strategy	Cap
Hype Carry	15,000,000 USDC
Straddle USDC	15,000,000 USDC
Straddle ETH	10,000 ETH
Straddle LBTC	100 LBTC

Arbitrum

Strategy	Cap
Hype Carry	15,000,000 USDC
Straddle USDC	15,000,000 USDC
Straddle ETH	10,000 ETH

Base

Strategy	Cap
Hype Carry	15,000,000 USDC
Straddle USDC	15,000,000 USDC
Straddle ETH	10,000 ETH

Collateral Breakdown

Asset	% of Portfolio
ETH	60-100%
BTC	0-30%
SOL	0-30%
HYPE	0-20%

Custody (for institutional clients)

Theo provides an option for institutional clients who want deposited assets to be held in an enterprise-grade custody solution. If you're interested, please fill out this form.