Moderately Risky Strategy
Higher yields through multi-asset LP farming with AERO-wstETH exposure.
Higher yields through multi-asset LP farming with AERO-wstETH exposure.
The Moderately Risky tier pursues the highest yields in the current Metalos lineup by combining governance token incentives with liquid staking rewards. It places capital in the AERO-wstETH pool on Aerodrome, pairing the Base ecosystem's leading DEX token with wrapped staked ETH. The result is a strategy that can deliver double-digit returns but also swings more sharply than the other tiers.
This tier launches with Aerodrome AERO-wstETH LP. Additional high-yield strategies will be added through governance.
0x06a613d3a056d4b04d7523c11d82c67bebf9d8500x68d24f7c60d316eb27e116a9910902ff23cd8f1e0x82a0c1a0d4ef0c0ca3cfda3ad1aa78309cc6139bVerify contract addresses on BaseScan before depositing funds.
This vault uses an LP (Liquidity Provider) token that represents your share of the AERO-wstETH liquidity pool:
New to LP tokens? See our Understanding LP Tokens guide in the User Guides section for a detailed explanation.
When you deposit USDC, Metalos converts roughly half into AERO and the remainder into wstETH before supplying both assets to the Aerodrome pool. The vault stakes the resulting LP tokens and compounds rewards continuously. Income arrives from trading fees, enhanced AERO incentives, the embedded wstETH staking yield, and potential price appreciation of both assets. Because AERO is a governance token and wstETH tracks ETH plus staking rewards, the strategy captures upside from the Base ecosystem's growth while maintaining exposure to ETH fundamentals.
Higher Impermanent Loss Risk: Both tokens in this pool are volatile, increasing IL potential. Recommended for users comfortable with DeFi mechanics. See Understanding Impermanent Loss in the User Guides section for details.
wstETH represents staked ETH that continues to earn validator rewards. AERO governs Aerodrome's incentive engine. Together they provide diversified yield streams but also amplify volatility.
This tier experiences the most day-to-day movement because both assets are volatile. Governance tokens often move 10-30% in a single day, and ETH is known for double-digit swings. Impermanent loss is more pronounced than in the WETH-USDC pool because the asset pair does not include a stablecoin. The Metalos automation layer tracks IL in real time and alerts you if it begins to erode returns, but you should still be comfortable with sharp balance fluctuations and the possibility of 30-40% drawdowns during market corrections.
Smart contract risk compounds across multiple protocols: Aerodrome, Lido (issuer of wstETH), and the Metalos vault itself. Incentives may change through governance votes, causing APY to fall. Liquidity can dry up during stress events, making exits more expensive. These realities make it essential to treat this tier as a satellite position and to review performance regularly.
Only allocate capital you can afford to keep active for six months or more. Tactical traders may rotate in and out, but the strategy works best when you give it time to compound rewards across market cycles.
Historically this tier has earned 8-20% APY depending on trading volume and incentive levels. Trading fees contribute one to three percentage points, AERO emissions add five to fifteen, wstETH staking yield accounts for roughly two, and daily compounding provides another modest boost. Price appreciation of AERO or ETH can supercharge returns in bull markets but also cuts both ways. Daily volatility ranges from 3-8% in stable conditions and can reach double digits in turbulent periods.
Depositing involves a handful of confirmations: approve USDC, approve the swaps into AERO and wstETH, and confirm the liquidity addition. Wallets that support EIP-5792 batching condense these into fewer prompts. Withdrawing reverses the process, converting everything back to USDC before returning funds to your wallet. Expect the round trip to take 90-150 seconds and cost $3-6 in gas depending on network activity. The dashboard provides IL tracking, yield attribution, and exit simulations so you can judge whether the position still aligns with your thesis.
This tier is for experienced DeFi users, Base ecosystem believers, and portfolios that can stomach high volatility in exchange for superior upside. Balanced investors often cap exposure at 10-20%, while aggressive users may allocate up to 40% alongside other speculative positions. It's prudent to harvest profits into safer tiers after strong rallies and to dollar-cost average into new positions rather than deploying all capital at once.
Planned Vault Additions: This tier will expand with high-yield advanced strategies:
All vault additions require:
Proposals must demonstrate strong security reviews, healthy liquidity, and sustainable incentives before the community will approve them. AI research tools help prepare diligence reports to inform governance decisions.
Propose high-yield strategies using the Vault Addition template. Ensure you conduct thorough research on risks and include stress-test scenarios in your proposal.
Learn about the proposal flow in the Governance Overview section (Technology documentation) and track potential additions in the Strategy Catalog.
What if AERO drops dramatically?
The position will lose value quickly because AERO represents half the pool. Trading fees and wstETH yield soften the blow but cannot fully offset a severe drawdown. Consider reducing exposure if you expect sustained weakness in the Base ecosystem.
Is providing liquidity better than holding AERO and wstETH separately?
Liquidity provision introduces impermanent loss but adds multiple yield streams. If you want pure price exposure, holding the tokens outright may be simpler. If you want the potential to earn while supporting DEX liquidity, the LP approach makes sense.
Can I time withdrawals to avoid losses?
You can exit at any time. Many users watch impermanent loss and incentive levels, withdrawing when conditions deteriorate or reallocating profits after a strong run. Slippage is lowest when markets are calm.
What happens if Aerodrome loses dominance?
Declining volume would reduce fees and incentives. Metalos governance could vote to migrate capital to a different protocol if better opportunities emerge. Continuous monitoring ensures the community can act quickly.
Before deploying, ask the AI chat agent to stress-test your plan about what risks you should monitor when placing a portion of your portfolio in the Moderately Risky tier.