How to Ship Leveraged Staking to Your App Without Writing a Line of Logic

Leveraged staking, also known as looping, is a popular strategy in the DeFi space. It involves using liquid staking tokens (LSTs) as collateral to borrow unstaked versions of the assets, swapping them back into LSTs, and supplying them again. This process can lead to a significant yield spread. However, implementing it safely with proper loan-to-value limits, liquidation buffers, and price-correlation checks is challenging.

Balanced, a design-focused DeFi app, has recently launched a feature allowing users to access three leveraged staking strategies without writing any code. Their Vault widget includes strategies for JitoSOL, weETH, and wstETH, funded by deposits from 20+ networks supported by SODAX. The strategy leverages a vault primitive within the SODAX SDK and is currently available for live production.

Leveraged staking has gained popularity due to the availability of liquid restaking protocols, which hold around $7 billion in total value locked. Key players like Aave have increased loan-to-value caps for specific LSTs to attract more capital. The SODAX platform offers leveraged staking vaults as a callable feature, which can be easily integrated into products using their APIs or Builder MCP Server.

Deposits and withdrawals can be funded from any supported network, and developers can attach partner fees to generate revenue. Balanced has already implemented this feature in their latest release, allowing users to deposit assets from 13 blockchain networks into strategies that derive yield from ETH or SOL staking. The full documentation for this feature can be found at docs.sodax.com, and the integration guide can be accessed through the SODAX Builders MCP.