Sushi <> Galleon


  • Galleon DAO - Asset Management Methodologists Guild (part of Set ecosystem)

  • Specialise in Structured Products

  • Recently launched ETH Max Yield Index ($ETHMAXY) which (utilizes stETH from Lido and Aave services) to create a 3x+ levered ETH exposure and provides 13-15% APY (very liquidation resistant).

  • Currently Galleon’s governance token $DBL is in a Sushi pool, we’re looking to run onsen rewards.

  • Wanting to further Collaborate / Partner with Sushi.


Hi All, Duck here, Core contributor (Operations & Growth) to Galleon DAO an Asset Management Methodologists Guild (part of Set ecosystem) that specialises in Structured Products. Currently, our Governance token is on Sushiswap, we’re also pursuing an Onsen rewards pool via Sushi team member Ape.

On Thursday 10th of March following the recent successful quorum of stETH being added to Aave: Proposal: Add Support for stETH (Lido) - #14 by Anjan-ParaFi - New Asset - Aave, Galleon launched its second collaborative product (with Beverage Finance) on mainnet called The “ETH Max Yield Index”, aka $ETHMAXY. The product utilizes stETH via Lido and Aave collateral services to create a 3x+ levered ETH position with a 13-15% APY.

In a representative example, since stETH is paying 5% staking APY while the borrowing rate for ETH is <1%, ETHMAXY achieves 13–15% APY, the highest ETH APY rates seen in DeFi whilst maintaining full composability and simplicity of a regular ERC20 token.

Understanding the Methodology

The Ethereum Max Yield Index follows a strict methodology, it is composed of stETH, deposited as collateral, allowing ETH to be borrowed and wrapped into stETH — this process is repeated until the token is 3x+ levered. Aave LTV for stETH is 70% and liquidation is at 75% which means stETH can be looped 3.33x — 4x.

Product parameters

  • Underlying Asset: stETH (collateral), ETH (debt asset).
  • Rebalance Interval: No fixed interval. The product will be rebalanced if the leverage ratio falls due to stETH APY accrued.
  • Streaming Fee: 1.95%


We’re big fans of Sushi choosing to implement our Governance token on Sushiswap and have very much enjoyed working with the team so far, we would like to further this relationship with future product development, additionally, ETH Max Yield Index was built as a partnership product aiming to give DeFi natives the most yield possible on their staked ETH in addition to acting as a best-in-class treasury diversification asset for DAOs looking to maximise the productivity of their idle ETH.

We would like to raise the proposal to gauge interest from the Sushi DAO of a potential treasury diversification into the ETH Max Yield Index. We’re currently running additional incentives on top of the 13-15% APY which includes Governance token rewards from both Galleon ($DBL) and Beverage Finance ($DRINK) the Liquidity Rewards TLDR is as followed:

→ At $1M liquidity — 80% APR

→ At $5M liquidity — 16% APR

→ ~$66,000/m in rewards at current, sub $5M market valuations for both $DBL & $DRINK

These rewards would give Sushi a stake in our Governance where they can vote on future products we launch, further aligning our two DAOs.

Galleon will also cover any minting costs accrued by the Sushi DAO if they did decide to mint $ETHMAXY.

Final points

Galleon Core team are DeFi natives, who have very grand ambitions, the DAO is currently talking with some of the biggest names in DeFi, there are a lot of exciting products in the works and we would love to continue (and if possible further) the Sushi <> Galleon collaboration.

To wrap up, we would love consideration and potential feedback on this proposal, happy to talk in greater detail with the team or any DAO members.

Thanks for your time and kind regards.


Hey duck, interesting proposal !

Dropping some documentation I found on galleon website for those interested :
Doc: ETHMAXY - Galleon DAO
TokenSet page: TokenSets - Asset Management Simplified

I have few questions that I didn’t find the answers to:

-Could you provide more infos on the risks of holding ETHMAXY tokens ? I saw the liquidation can occur if steth-eth ratio falls under 0.88, are there other major risks ? for example who is the set manager and how much power do he has over the set ?

-What is the incentive contract address and do it requires ETHMAXY tokens to be staked on it ?
-How long will the incentive last ?
-Do you have a target amount you would like sushi to commit ?

Thanks for your time :pray:


Hey @hhk - Andrew here from Galleon, coming aboard this thread.

1 - Major de-pegging is the primary risk for the token, we have levers in the smart control to control the leverage ratio of the Set to manage that risk in addition to a ripcord function that will delever the Set on demand in the event of extreme volatility. The token is based on the same contract architecture as the Flexible Leverage Index tokens that protect risk in the same manner. The Set Manager (Galleon DAO) has the power to execute the strategy, change the parameters to maximise yield but most importantly, never withdraw any collateral from the Set, it is trustless by design.

2 - Our incentives and staking mechanism are all Masterchef based using $DRINK + $DBL from a rewarded contract, so you’ll definitely be familiar.!

[redacted links to Masterchef, rewarder + g-uni tokens due to forum permissions]

3 - 3 months of incentives, we have just started from the 11th. $DRINK is live and $DBL incentives via a rewarder contract begin next week so still very early. After 3 months we plan to extend the rewards but lower the APYs as we feel the product itself is a great hold and draw by itself.

4 - There is no limit here, but one interesting thing to note is that the SUSHI DAO House Set currently holds 1.2K WETH sitting idle in the contract [redacted link due to forum permissions]

Why not have the same spot exposure but earn the increased yield given by the ETH Max Yield Index (in a quantity chosen by you.

Thank you :pirate_flag:


Happy to setup a discord chat with between Andrew, yourself and me @hhk we can then provide you with all the relevant links you’ve requested, our forum permissions are preventing us from posting them :sweat_smile:.

Let me know if that is of interest. cheers.


Thanks for the answers @Duck_0x @DavyJones.

I asked Tangle if he can unlock your forum accounts so you can post links :+1:

Using the ETH sitting in the DAO HOUSE is a good idea !
Link to the set: TokenSets - Asset Management Simplified

Adding a poll to gauge sentiment (no determined amount for now):

  • For, Use the ETH sitting in the SUSHI DAO HOUSE.
  • For, Use SUSHI sitting in the treasury.
  • Against, Don’t use ETHMAXY to diversify the treasury.

0 voters


Hey @Duck - welcome to the forums.

If my understanding is right, it seems to be recursively borrowing until you reach a target ratio of 3X:

Looks similar to products being created in other networks, but a cleaner UX for the end-user nonetheless.

For the LM incentives, I have a few questions:

Are these rewards on a single deposit? Or paid on the total liquidity in the set?

While there is a greater risk to a leveraged product, I would lean towards using idle wETH over converting current treasury assets.

If we decide this is a strategy we would like to pursue long term, we can mint more of $ETHMAXY.

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Thanks for your interest @fig appreciate it.

Just to clarify on this point it’s actually 1x ETH exposure, it’s the yield itself that is levered. Equivalent of holding ETH with 14% APY + LM rewards. Volatility decay is 0.

The rewards are payed across all G-UNI liquidity providers based on the % share of the liquidity they own.

We’re open to whatever Sushi feels comfortable with, we’ve had fantastic engagement from Ape and would love to continue building out the Sushi <> Galleon relationship :handshake:

Just wanted to follow up @hhk if you’re keen to move forward on using the ETH in the Sushi DAO House, we have deep liquidity on uni v3 or alternatively Galleon is happy to cover large minting costs, if Sushi would prefer to mint the index.

Currently with liquidity reward incentives on top $ETHMAXY is giving 23%+ APY. Perhaps we should setup a discord group to discuss next steps?

Hey Duck, would be great to get more community members opinions on this proposal to gauge the sentiment.

Also, I think focus from the team and community is on the legal structure and organization at the moment which might impact the treasury and its signers.
It will probably be easier to deal with this type of proposal once these stuffs are figured out.


No problem at all and that makes complete sense. I’ll wait to hear back from you here, once the legal structure etc is all ironed out. Thanks :slightly_smiling_face:

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