> For the complete documentation index, see [llms.txt](https://lite.guides.instadapp.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lite.guides.instadapp.io/getting-started/fluid-lite-eth-vault.md).

# Fluid Lite ETH Vault

Fluid Lite generates high yields by using lending protocols to amplify two main sources of returns:

* **ETH Proof of Stake rewards** (stETH Vault)
* **Stablecoins lending rates** (USD Vault)

Fluid Lite intelligently routes positions across multiple lending markets, currently **Compound, Aave V3, Spark, and Morpho,** to achieve the best possible APRs.

### stETH Vault: weETH-ETH Leverage Strategy

This vault takes **ETH or stETH**, then automatically converts deposits into the optimal mix of **wstETH and weETH**. 

It then:

* Supplies this collateral across multiple lending markets.
* Borrows ETH.
* Swaps borrowed ETH back into wstETH/weETH.
* Loops this process to create a leveraged staking position.

Through this continuous loop the base Ethereum staking yield is amplify.

This vault earns **weekly KING rewards** from weETH collateral. These are converted to ETH and distributed to users weekly.

<figure><img src="/files/510ujFkjoLylyzD0z0F6" alt=""><figcaption><p>A simplified view of Fluid’s leveraged ETH yield strategy.</p></figcaption></figure>

### **Long Term Steady Yields**

Ethereum’s proof of stake rewards will be generated in perpetuity! Unlike other DeFi yields that require emissions of DAO tokens, or secondary incentives, staking rewards are a consistent and reliable source of yield, arguably the best DeFi yield on the market! This makes Fluid Lite ideal for both short and long term holding.