Lend inwstETHs on Euler: Unlock ETH While Staying Restaked

A new lending market is now live on Euler, powered by MEV Capital and centered around inwstETHs: Inception’s Liquid Restaked Token for wstETH on Symbiotic. This addition unlocks additional utility for restakers by enabling ETH borrowing against inwstETHs, while maintaining full exposure to all rewards, associated points, and underlying yield.

Whether you’re simply lending to earn or using the borrowed ETH to explore more advanced DeFi strategies like restaking loops, this integration bridges native staking yield with deeper liquidity options.

-> Euler inwstETHs Lending Market

TL;DR

• Borrow ETH against inwstETHs without leaving your restaking position
• Retain exposure to wstETH staking APR while lending on Euler
• Maintain eligibility for Symbiotic, Mellow, and Turtle Club points
• Get a 3x Totems boost by lending on Euler, compared to 2x for simple restaking

Euler’s Lending Market for inwstETHs

The inwstETHs lending market is deployed through Euler’s permissionless lending platform, where MEV Capital acts as the Governer: a role that includes setting up new lending markets, configuring loan-to-value ratios, and managing collateral parameters. In this context, inwstETHs becomes a borrowable, yield-bearing collateral that integrates into the broader DeFi landscape.

This setup enables:

• Lending inwstETHs: Users can supply their inwstETHs as collateral to enable borrowing, while continuing to earn the underlying staking yield.
• Borrow ETH: Lenders can unlock liquidity by borrowing ETH against their inwstETHs, while their staking exposure remains untouched.

How It Works: From ETH to liquidity

Below is a step-by-step breakdown of how users can access this market:

1. Get wstETH

Wrap ETH into wstETH through Lido or Swap directly using any major DEX. wstETH is a yield/bearing token that reflects staked ETH and accrue rewards over time.

2. Restake wstETH

Deposit wstETH into Inception’s Symbiotic Vault, which restakes it across multiple networks through Symbiotic’s infrastructure. This converts your wstETH into inwstETHs

3. Receive inwstETHs

Once restaked, users receive inwstETHs: Inception’s Liquid Restaking Token (LRT) representing the restaked position plus accrued rewards. inwstETHs remain composable and can be used freely acros DeFi protocols, including this new Euler market.

4. Lend inwstETHs on Euler

Supply inwstETHs into the Euler lending market governed by MEV Capital. This enables ETH borrowing while your staking rewards and restaking exposure continue to accrue in the background.

5. Borrow ETH

Users may borrow ETH against their supplied inwstETHs at the current collateral ratios defined by the market. Borrowed ETH can be used for any purpose, including re-entering the restaking loop or participating in other DeFi strategies.

What You Gain by Lending inwstETHs

This lending flow provides several stacked benefits:

Maintained Exposure to Organic wstETH yield

inwstETHs inherit wstETH’s base staking APR (currently ~2.87%). This yield continues to accrue while your inwstETHs are lent out on Euler.

3x Totems Boost

Lending inwstETHs on Euler qualifies for a 3x multiplier in Inception’s Totems system, higher than the 2x boost given for staking alone. Check where you stand amongst all totem holders here: Totems Hub

Continuous Accrual of Restaking Points

While lent out, inwstETHs retains eligibility for Symbiotic, Mellow, and Turtle Club Points, ensuring users continue accumulating ecosystem incentives across multiple protocols.

Broadest Symbiotic Coverage

inwstETHs currently secure all but three networks in the Symbioitc ecosystem, making it the most widely integrated LRT. Lending inwstETHs does not interrupt this coverage

For Power Users: Leveraged Restaking Loops

Advanced users may choose to loop the process for increased exposure:

Borrow ETH -> Convert to wstETH -> Restake into inwstETHs -> Lend on Euler -> Borrow again

This strategy increases the amount of staked capital, and consequently, the total exposure to staking yield, totems, and restaking points. While it can magnify rewards, users should be aware of the associated risks:

• Liquidation risks due to wstETH/ETH price fluctuations
• Accruing borrowing interest (Euler’s current ETH borrow APR)
• Reduced safety margin with increased leverage

Looping is entirely optional and best suited for users familiar with DeFi lending dynamics and collateral management.

Final Notes

The inwstETHs lending market on Euler, governed by MEV Capital, extends the utility of Liquid Restaked Tokens by combining staking exposure with access to liquidity.

Users can now borrow ETH while remaining fully exposed to staking APR, restaking points, and future network rewards. Whether passively lending or actively looping, this integration provides flexibility without requiring users to exist the restaking landscape.

Explore the market here: Euler inwstETHs Lending Market