Summary

Derive LRT Vault Tokens are erc20s that represent the payoff of vaults which hold a yield bearing asset (i.e. weETH, rswETH, sUSDe) and periodically buy/sell structured option products against that collateral (i.e. covered call spreads, long put spreads). The tokens are generated by locking LRTs within a Lyra Tokenized SubAccount (TSA) and receiving back shares of that account.

To complete the deposit and receive the TSA-Tokens on the chain, three steps must be completed:

Deposit LRT and Mint C-Token

Deposit LRT to Derive Chain

Assets must be deposited to Derive Chain to be able to enter the TSA. Socket DLTech bridges are used to enable near instant deposits and withdrawals on Derive. More information on the bridges can be found here, and a more in depth technical breakdown can be found here. DLTech has been audited by both Zellic and Hexens:

This will mint a token on Derive Chain that represents the deposited asset.

Of note, assets from multiple different chains can be deposited in their respective “Vaults” on each chain, and generate the same token on Lyra Chain’s side (single “Connector").

Deposit Asset into TSA

LRTs held on Derive Chain can now be deposited into the TSA. The TSA is an upgradeable contract that is a simple implementation of the OpenZeppelin ERC20WrapperUpgradeable. This is deployed behind the TransparentUpgradeableProxy.

Withdraw TSA-Token

TSA-Tokens, similar to the the underlying asset, are transferred to other chains via the socket. The only difference being that there is one “Vault” on Derive Chain, and multiple “connectors” that can mint/burn the token to transfer them between chains.

Derive TSA Deposit Hook

Socket bridges implement a “hook” architecture which allows to transactions to be triggered on the completion of the deposit. Derive utilises this structure to enable the completion of this full round trip with a single user action. More details can be found in the Socket docs under the “Hooks” section.

TSA TradingExecution

🚧 In the current state, the contracts simply hold assets. The contracts will be upgraded to implement logic to deposit the LRTs into a Derive Protocol Subaccount, and begin trading using the funds deposited to the TSA.

Mainnet contract addresses

weETH (Wrapped ether.fi ETH)

bweETH (Wrapped ether.fi ETH Basis Trade Vault)

weETHC (Wrapped ether.fi ETH Covered Call Tokens)

weETHCS (Wrapped ether.fi ETH Covered Call Spread Tokens)

weETHBULL (Wrapped ether.fi ETH BULL Tokens)

rswETH (Restaked Swell ETH)

rswETHC (Restaked Swell ETH Covered Call Tokens)

rsETH (Kelp DAO Restaked ETH)

rsETHC (Kelp DAO Restaked ETH Covered Call Tokens)

sUSDe (Staked USDe)

sUSDeBULL (Staked USDe BULL Tokens)

LBTC (Lombard Bitcoin)

bLBTC (Lombard Staked Bitcoin Basis Trade Vault)

LBTCCS (Lombard Staked Bitcoin Covered Call Spreads)

LBTCPS (Lombard Staked Bitcoin Covered Put Spreads)

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Testnet

weETH (Wrapped ether.fi ETH)

• Chain: Derive Testnet
  • Token Address: 0x7ef0873bBf91B8Ecac22c0e9466b17c6Cc14B1bd
  • Bridge: 0xbEc0B31bbfA62364EBF6e27454978E33c5d9F4eE
• Chain: Arbitrum Sepolia
  • Token Address: 0xE0AcE05Ded5f3653aB0caAAf19E458DAb2E824F2
  • Bridge: 0x236D36C52bC56a37d9094B424A1420BE21f6392c
• Chain: Optimism Sepolia
  • Token Address: 0x8467d28492bB13cC964C49Fcc2fCA8A8B478836E
  • Bridge: 0x76eef7cb3DAab7b23fB818E3D82997f38aa1A620

weETHC (Wrapped ether.fi ETH Covered Call Tokens)

• Chain: Derive Testnet
  • Token Address: 0x79AC9B13810D31066Be547EdA46C40264b39397D
  • Bridge: 0xD0DEe9Fd4Cc1d2eCB4572c01cDC65603557cc506
• Chain: Arbitrum Sepolia
  • Token Address: 0xDf72bB31D759c4AB17fbBbc5D1e0D1081C4626BE
  • Bridge: 0xF151509ABefb08EdaF4CFd95fE6B3Eecb7d5C158
• Chain: Optimism Sepolia
  • Token Address: 0xb09B085D0cb6E920670dABd81fBd060CD572bC40
  • Bridge: 0x21DaBaa157f2b43606f528098C922d66898C5645

weETHCS (Wrapped ether.fi ETH Covered Call Spread Tokens)

• Chain: Derive Testnet
  • Token Address: 0x4900D5BbB97cea689C301E1805837a78eeBD8573
  • Bridge: 0x265736F3AB6825DC968a99fD25d2141d56E80744
• Chain: Arbitrum Sepolia
  • Token Address: 0x871D150B1A9Df599f8B5A153e0903037103b6a00
  • Bridge: 0xfC129aAAF2374845a8E9BAfd91F6f79C1d85c215
• Chain: Optimism Sepolia
  • Token Address: 0xbaC0328cd4Af53d52F9266Cdbd5bf46720320A20
  • Bridge: 0xbe750464c504CC543AF11830eC28C26470d11812

weETHBULL (Wrapped ether.fi ETH BULL Tokens)

• Chain: Derive Testnet
  • Token Address: 0xfdb2a80b21Ed2D6D738e2a4221931A343675382A
  • Bridge: 0x6Da6DC63b996DED3cc313d7B20162fd8BCdeaAc0
• Chain: Arbitrum Sepolia
  • Token Address: 0x00baf0AB12f45d6CEdC06e8b2062C64d2d1Ef896
  • Bridge: 0x4513F3266b8552570ad9e139d0c252a7D06F1b7E
• Chain: Optimism Sepolia
  • Token Address: 0x3bA36e7e1d32ee2dba8AFAefaE55169e08c7f8db
  • Bridge: 0x194A1B169800C0D6E248F7D0d305228b12D8e439

rswETH (Restaked Swell ETH)

• Chain: Derive Testnet
  • Token Address: 0xa7456213A5c081F53fEb3A4F64b88A4637Bf3028
  • Bridge: 0x4508c67469009DA7c5c8A2901554A2195D4E5a5a
• Chain: Arbitrum Sepolia
  • Token Address: 0xadfe82e1fc0f59d87bc69be637b947758505a614
  • Bridge: 0x47BB0e22F015BFc25138EfaF4261AB5CA4a887d6
• Chain: Optimism Sepolia
  • Token Address: 0x0b3639A094854796E3b236DB08646ffd21C0B1B2
  • Bridge: 0x6F054A18383b2EC7F709d7f24e69D9DbCC921aD3

rswETHC (Restaked Swell ETH Covered Call Tokens)

• Chain: Derive Testnet
  • Token Address: 0x797Db58F4c6611253e92B9a3260E3Cc9C69430a5
  • Bridge: 0x6481400fb34eea4692E411229d37ceB6a2af63B2
• Chain: Arbitrum Sepolia
  • Token Address: 0x8faC67324Ad5f24419C37192D586FE1E5293D83a
  • Bridge: 0x3E0906a5c68681C1EDc81e492f9F0Ff30C460F6b

rsETH (Kelp DAO Restaked ETH)

• Chain: Derive Testnet
  • Token Address: 0xc3ad6f6E0940df79e12b30F307109fc4Ec2ED7D0
  • Bridge: 0xF99E92715024EF3CAAB0328107161ea405D61e01
• Chain: Arbitrum Sepolia
  • Token Address: 0x8C4516853074c4Bb3bA921fE9e714aC322F7081C
  • Bridge: 0x62a11f238e489A49d840ec337c8e544cc43A7eAd
• Chain: Optimism Sepolia
  • Token Address: 0xE11D1F74C0FC6c4Fe45BEAD7daB6CC8044C234C8
  • Bridge: 0x6961c56923eA4e8FD5450fE7bEE193744222C072

rsETHC (Kelp DAO Restaked ETH Covered Call Tokens)

• Chain: Derive Testnet
  • Token Address: 0xD9f47BEBEe03C90855c209e06f884fa0551c1fDd
  • Bridge: 0x467c0835499271530A8ac05Eb7Df75dD26E2bFEe
• Chain: Arbitrum Sepolia
  • Token Address: 0xeCAAd20Fe81818E4Ce1EB35E463f681084ab2DD5
  • Bridge: 0xBcB494059969DAaB460E0B5d4f5c2366aab79aa1
• Chain: Optimism Sepolia
  • Token Address: 0xCfD701E3540d769427Bc699C63Ac5940B703fe48
  • Bridge: 0x4fF761D46Be8100063e388Bec1cb3653C3832908

sUSDe (Staked USDe)

• Chain: Derive Testnet
  • Token Address: 0xd87d41f1e4d8b48F3cA18faFc1069b18F9c15B9d
  • Bridge: 0x40fB94330Db4A4Bd3bAf8725211CDFa67d483439
• Chain: Arbitrum Sepolia
  • Token Address: 0xE820506a947396C20fA852AFc17CDf234b76e9a0
  • Bridge: 0x9576aFF10dFdb1d24B507EEb88554dF3427E43D6
• Chain: Optimism Sepolia
  • Token Address: 0xe21739C53fa561c5334Efd45c6cC3DB9ca99B5C3
  • Bridge: 0xB544dFE3BD399aa645fC12fd535f966dAa95e872

sUSDeBULL (Staked USDe BULL Tokens)

• Chain: Derive Testnet
  • Token Address: 0x4BAC0257C1a5be3814653789C6e60afF2F5f1DaD
  • Bridge: 0x9d7Ae8fe3B7Dc5922019b71724f6C7F1438080A7
• Chain: Arbitrum Sepolia
  • Token Address: 0x9D1525EE901CcE8C4224754a6204D2d5917C710c
  • Bridge: 0xB293594803771a5184a63031224C8C5851064a41
• Chain: Optimism Sepolia
  • Token Address: 0xEbd2921149B72Bbb6BC6a950896e2d10dE9Ad2e2
  • Bridge: 0x2f7b1ae31904e8b035718D80F404761135e51a17

LBTC (Lombard Bitcoin)

• Chain: Derive Testnet
  • Token Address: 0xDF129D5dc9c335B597815b1EBAB2BC0ff1af880c
  • Bridge: 0xaC5Ef8aEB59B3A0d98Cb3d508BD8D29941E1cc67
• Chain: Arbitrum Sepolia
  • Token Address: 0xAFB6Bb95cd70D5367e2C39e9dbEb422B9815339D
  • Bridge: 0xbaC0328cd4Af53d52F9266Cdbd5bf46720320A20
• Chain: Optimism Sepolia
  • Token Address: 0x42B7B80518244D205Ba775a3B4D60Ec655b3f443
  • Bridge: 0xd7E44De9013935A30D87669467c7b0e5a6A7991F

LBTCCS (Lombard Staked Bitcoin Covered Call Spreads)

• Chain: Derive Testnet
  • Token Address: 0x65410Dd3A47f7cdfFd0486D45688F00B142029D7
  • Bridge: 0xA4EEc0c2F44DEFf64ab5e9A96c688EF6930c2E12
• Chain: Arbitrum Sepolia
  • Token Address: 0x845D0f36287DbA5F1Db0515584eC26C9Bbc84Ebd
  • Bridge: 0x43ccF4a0ec4E31C35825C84cBca0a6a9243FBE8B
• Chain: Optimism Sepolia
  • Token Address: 0x84D8b20275724f31130F76Ecf42a501eDF72C1e0
  • Bridge: 0xB4cB0cBB907752865F61aB13893A4FeD569ed57F

LBTCPS (Lombard Staked Bitcoin Covered Put Spreads)

• Chain: Derive Testnet
  • Token Address: 0x49B9C82582B9916dE295D98b0c55373c300BbaEa
  • Bridge: 0xFB452304c2896C7956299eE703F3C8218c470639
• Chain: Arbitrum Sepolia
  • Token Address: 0x0dDc91650583532D143539e71a337CE31A35233E
  • Bridge: 0x6B1316f3DbF5a14243E1BA30e3DC9419f9E03701
• Chain: Optimism Sepolia
  • Token Address: 0x062F93b9bD9ceb50dcdb1230A9e89CBA36157C33
  • Bridge: 0xD189a6CA6c67AbB04521a679CC4A94C5DFD4a0D5