inwstETHs is live on Loop.Fi: 1 Deposit, 8 Reward Streams
inwstETHs, Inception’s staking token derived from wstETH, is now live on LoopFi. This integration enables users to deposit inwstETHs into LoopFi and gain automated exposure to a looping strategy built on Spectra’s fixed reward infrastructure.
The process is fully automated, LoopFi handles every step in the background, allowing users to access multiple layers of rewards with a single deposit:
inwstETHs on Loop.fi (Source)
TL;DR
- LoopFi automates a leveraged strategy using inwstETHs, Spectra LPs, and ETH borrowing.
- Users only deposit inwstETHs (or another compatible asset) and select a loop factor; all other steps are handled behind the scenes.
- The strategy combines fixed reward and point farming from Spectra, Inception, and LoopFi.
- All positions settle after the Spectra vault matures on July 19.
What Happens When You Deposit inwstETHs?
When a user deposits inwstETHs into LoopFi, the following sequence is executed automatically:
1 - LoopFi deposits inwstETHs into Spectra, which splits them into two tokens:
- PT (Principal Token) – redeemable for inwstETHs at maturity.
- YT (Yield Token) – represents the future yield from the position.
2 - Spectra LP tokens are minted by combining PTs and YTs into a liquidity pool.
- These LP tokens generate fixed rewards and trading fees.
3 - LoopFi uses those LP tokens as collateral to borrow ETH.
- The amount of ETH borrowed is based on the user’s selected loop factor (e.g. 2x or 5x).
4 - LoopFi uses the borrowed ETH to buy more inwstETHs and repeats the full process.
- This creates a self-reinforcing loop, compounding the user’s staking exposure.
Users do not need to interact with Spectra, manage PT/YT tokens, or handle liquidity provisioning. LoopFi executes the entire strategy flow and maintains the loop automatically until maturity (July 19th).
Incentives and Reward Structure
By participating in this strategy, users gain access to multiple incentive streams tied to inwstETHs and its integrations:
- Inception Totems: Holding inwstETHs earns 3x Totems, Inception’s reward points program.
- Mellow Points: Eligible for 2x Mellow points.
- Symbiotic Points: Earn 1x points via Symbiotic’s reward system.
- Turtle Club, Ditto Network, MEV-Commit: Each contributes 1x reward stream for holding inwstETHs.
- Loop.Fi Quaaloops: Points awarded based on the amount looped and the chosen leverage level.
Looping doesn’t just increase staking exposure, it also amplifies the number of points accrued across all these 7 programs. Higher loop factors multiply the effective inwstETHs held in the strategy, increasing eligibility and point generation across all integrated reward layers.
These programs operate independently. Rewards may include token distributions, leaderboard rankings, or future protocol incentives.
Maturity Information
The current Spectra vault linked to this strategy matures on July 19. Until then, fixed rewards continue to accrue. Upon maturity, PTs are redeemable for inwstETHs and the looping position begins to unwind.
How to Start on Loopfi
To activate the strategy:
- Go to LoopFi
- Select the inwstETHs vault
- Choose a loop factor (e.g. 2x, 3x, up to 5x)
- Deposit your inwstETHs (or any other supported asset)
The rest of the process: Spectra interaction, LP minting, borrowing, and looping, is handled automatically.
Conclusion
This integration abstracts away the complexity of interacting with multiple DeFi protocols by automating the full strategy behind a single inwstETHs deposit. Users gain access to fixed rewards from Spectra, while also amplifying their exposure to multiple ecosystem reward programs through LoopFi’s automated looping mechanism.
It offers a streamlined way to participate in point-based incentive layers without requiring manual token management or multi-protocol navigation.
You can access the strategy directly via the inwstETHs vault on LoopFi.
