Entering in Bal/Aura wstETH/WETH strategy

Here is the flow of funds when a user makes a deposit request for 10 ETH in a leveraged Balancer/Aura wstETH/WETH strategy vault.

---

A user needs to deposit ETH based on the minimum and maximum permissible deposit amount. Currently, a user can open an investment position with 3.75 ETH to 25.00 ETH. Besides providing ETH, a user also need to specify the leverage multiple that they are willing to take and the maturity.

To borrow, a user would need to mint a pair of fETH to swap the +fETH for cETH. The amount of fETH to be minted is simply the product of the leverage multiple and the quantity of deposited ETH. Here, the leverage multiple is 5x and the deposited ETH quantity is 10 thus notional accounts would mint 50 +fETH and -fETH.

50 +fETH is swapped for an equivalent amount of cETH.

The amount of cETH resulting from the swap would be based on the interest rate and the time to maturity in the fETH 3-Month pool.

cETH is converted to ETH

ETH (principal + borrowed) is transferred to the leveraged vault.

The leveraged vault allocated the ETH based on the strategy chosen by the user. Here, all the ETH (principal + borrowed) is invested in the Balancer ETH/wstETH strategy. The balancer would provide pool tokens (BPT = balancer pool tokens) in return.

These BPT are staked on Aura to get best BAL emission rewards as well as AURA incentives

Once the investment is made the leverage vault would provide the notional account with the vault share which reflects the whole investment for a particular user.