Introducing Sharpe Magnum: Leverage LSD optimizer

Sharpe Labs
3 min readFeb 8, 2023
Staking? Leverage-optimized Staking!

Staking is a crucial component of the DeFi ecosystem since it allows users to earn passive revenue by validating transactions and securing the network. It’s no surprise that with the current popularity of liquid staking protocols like Lido, Stader, and Rocketpool, many users are looking for ways to enhance their staking yields.

Sharpe Magnum is a new protocol in the DeFi LSD space that is creating a novel approach to improving liquid staking yields while maintaining the same underlying guarantees as the largest DeFi pools. Sharpe Magnum builds on existing infrastructure, leveraging the liquidity and underlying guarantees of staking pools to provide users with higher APYs on their staked assets.

Improved APYs for Stakers

Many DeFi users’ primary goal is to maximize staking yields. Magnum is a staking optimizer that leverages and borrows additional capital through flashloans and enhances staking exposure by arbitraging the staking-borrowing spread to improve staking pool capital efficiency. As a result, users that stake their assets with Sharpe Magnum will benefit from higher APYs.



Magnum is based on the ERC-4626 standard and is intended to be composable, which means that it can be readily integrated into other protocols and applications. Users depositing ETH will receive magETH, which can be utilized for a variety of use cases inside the DeFi ecosystem, further enhancing its utility, flexibility, and liquidity.

What do you call a staking protocol named Magnum? A real shooting star in the Defi sky! 🌟

Same Guarantees and Liquidity

Sharpe Magnum, unlike other staking protocols, Magnum does not compete with current staking pools. Instead, it expands on its infrastructure, gaining access to its liquidity in order to give users the best optimized staking yields. This means that users will have access to the same amount of liquidity and underlying guarantees as if they were staking directly with Lido, Stader, or other staking protocols.

Risk Monitored for Sustainability

Magnum’s on-chain keepers continuously monitor the risk of their positions and use a contingency mechanism to automatically de-leverage the system using the contingency mechanism in the event of potential loss-making events.

Future Developments 🚀

Leverage $MATIC staking vaults — MagMATIC

Multi-strategy deployment deploying on Morpho, Aave v3, and Euler and amongst cbETH and rETH for ETH vaults and MATICx and stMATIC for matic-based vaults, seamlessly leveraging and deploying between different yield sources to 📈 improve APY and reduce single point of dependencies! 🤖

To sum up — Magnum is the optimized gateway to decentralized staking. Instead of staking directly with your favorite staking pools, such as Lido, Stader, and others, you are better off using Magnum.

Join the Magnum community on Discord! 💬 Get updates, connect with fellow users, and be a part of the future of Leverage Liquid Staking 🚀Check out our documentation or contact us at to be part of the testnet.



Sharpe Labs

Sharpe Labs is a DeFi R&D lab that creates open-source innovative investment solutions using our Institutional-Grade Asset Management tooling and infrastructure