2 LTs on Mainnet. One with 6.75x Leverage, the other with 25x. What's the difference? 🤔 It's not random. It's LLTV limits + asset correlation, working together. Here's how LTs seek to optimize and simplify leverage: 1/7

2/ Target Leverage Ratios aren't chosen freely, it's informed by something called LLTV (Liquidation Loan-to-Value). LLTV = how much you can borrow against $1 of collateral. Higher LLTV = more $ borrowed per loop = higher total leverage possible. **But**: Just because you can max leverage doesn't mean you should.

3/ Optimal leverage depends on a couple things: 1. LLTV ceiling (set by the market) 2. Asset correlation (how closely the pair moves together) Tight correlation + high LLTV = you can push leverage higher. Looser correlation + lower LLTV = keep it a bit conservative. Different markets = different limits.

5/ wstETH/ETH Seamless LT: • LLTV: 96.5% • Leverage: 25x • Higher leverage than most, how? wstETH and ETH move almost identically (~99% correlation), a <2% historical variance, and a high LLTV ceiling allows it. They track so close that 25x just makes sense.

6/ Both LTs are correlated yield loops. The difference? Optimal leverage ratios. LTs allow for endless leverage options. But early rollouts focus on: ✅ Correlated asset pairs ✅ Highly liquid markets ✅ Proven user behavior patterns Future LTs? More strategies, more leverage bands, more optimization. This is just the beginning.