Amplify the returns on your cbETH.
Put idle cbETH to work, or earn returns on an existing allocation, in your own dedicated cbETH vault, managed by Tesseract Investment Oy under its MiCA authorization.
Indicative gross target APY
Variable. Not guaranteed. Before fees.Indicative gross target APY as of 24 August 2026. Gross of a 0.25% management fee and a 30% performance fee. Net returns will be materially lower.
Returns are performance-dependent. This is a leveraged strategy: leveraged positions can be liquidated in adverse market or protocol conditions, which amplifies losses. A material part of the target return depends on a third-party incentive program on Base, reviewed monthly, which may change or end without notice. Capital at risk. Past performance is not indicative of future results. Not covered by investor compensation schemes.
- Deposit asset
- cbETH
- Deposit asset
- Network
- Network
- Strategy
- Leveraged looping
- Strategy
- Minimum allocation
- $10,000
- Minimum allocation
This page is a marketing communication. It is not investment advice, and not an offer, solicitation, or recommendation to use any product.
The strategy
How the strategy works.
An optimized looping strategy, fully managed by Tesseract Investment Oy, a MiCA-authorized CASP. Allocate in cbETH, maintain ETH exposure, and receive returns denominated in cbETH.
Allocate cbETH
Fund the vault directly with cbETH, while maintaining your exposure to ETH.
Tesseract managed looping strategy
Tesseract uses cbETH as collateral to build and manage a leveraged position across three vetted DeFi venues on Base, optimized for liquidity and borrowing conditions.
Generated yield enhanced with Base incentive
The amplified return from the looping position and the incentive program together make up the gross target, quoted before fees.
Three steps to allocated.
The same path the app walks you through, with your progress updating automatically as your wallet clears each stage.
- 1
Connect your wallet
Connect the wallet you will use to deploy and manage your vault. Its whitelist status is checked on-chain.
- 2
Get verified
Complete KYC and KYB and the MiCA suitability assessment. Once your wallet clears AML it is whitelisted on-chain.
- 3
Deploy and fund
Deploy your dedicated vault, fund it, and allocate to the cbETH strategy. Minimum allocation $10,000.
The vault
How your vault works.
The strategy runs inside a Dedicated Client Vault: an individually managed vault that you deploy, segregated from other clients’ assets, operated by Tesseract Investment Oy as a discretionary portfolio management service under MiCA.
A dedicated vault for you
When you onboard, you deploy your own vault, with its own on-chain contract and address. At the vault level your cbETH is never pooled with another client’s capital: assets, returns, and risk exposure stay attributable to your vault.
Managed under your mandate
You agree a mandate. Tesseract Investment Oy then selects, executes, and monitors the strategy within it, as a discretionary portfolio management service under MiCA.
Onboarding before funding
Identity, sanctions, and suitability checks are completed before the vault is funded, so every allocation comes from a verified client.
Non-transferable tokens, not a security
Your position is recorded as a balance in your own vault. The vault token is non-transferable: no secondary market, no fungible shares, and no unit in a collective scheme. On withdrawal the position is unwound and returned to you in cbETH.
FAQ
cbETH vault FAQs.
Is the strategy open?
The strategy is open for allocation. Onboarding, including KYB and KYC checks, must be completed before an allocation can be made.
Is the target guaranteed?
No. The target is indicative only and does not constitute a guarantee, forecast or promise of return. It is quoted gross of the 0.25% management fee and 30% performance fee set out in our published fee schedule. Returns are performance-dependent and will vary; past performance is not indicative of future results. Capital is at risk.
How do withdrawals work?
Withdrawals are requested through your vault and settle in up to five days in normal market conditions. The position is unwound and returned to you in cbETH. Because the strategy is leveraged, unwinding can take longer in stressed market or protocol conditions.
What are the fees?
A 0.25% management fee and a 30% performance fee. The performance fee applies only to gains above a high-water mark, so it is charged on new performance rather than on the same gain twice. Fees are deducted on-chain rather than invoiced, and you bear network gas on your own deposits and withdrawals. The target is quoted gross, before fees.
What supports the target rate?
The gross target combines the return from the managed cbETH looping position with a third-party incentive program on Base, reviewed monthly. Market conditions, borrowing costs, position performance, and incentive availability can change the target over time.
How does the looping strategy work?
It is a managed loop: Tesseract supplies cbETH as collateral, borrows against it, and re-supplies additional cbETH to build a controlled leveraged position across three vetted DeFi venues on Base. The team manages the build and unwind under the client mandate.
What is cbETH?
cbETH is Coinbase Wrapped Staked ETH, a liquid staking token that represents staked ETH. The balance stays fixed while its value against ETH tracks the staking rewards accruing underneath, and the token remains transferable and usable on-chain. The market price of cbETH is set by trading and can differ from that value. It exists on Ethereum and on Base, Coinbase’s Ethereum Layer 2, and unwraps back to ETH through Coinbase. Coinbase publishes the cbETH white paper.
How do I get cbETH?
You can buy cbETH directly on Coinbase, and it also trades on other exchanges and on-chain. We do not recommend any particular venue and do not arrange acquisition on your behalf. The vault takes deposits on Base, so holdings on Ethereum need to move across first. Use the official Base bridge for that; fake bridge sites are common. Bridging carries its own risks, including irreversible loss. Our team can help with the practicalities during onboarding.
Can this run inside a market-neutral ETH portfolio?
Your allocation stays exposed to ETH, and returns are paid in cbETH.
What is a Dedicated Client Vault?
It is an individual vault managed by Tesseract Investment Oy under the client’s mandate, with assets, returns, and reporting kept separate from every other client. Read more about Dedicated Client Vaults.
What happens after I register interest?
We email the product summary and contact you to assess suitability and eligibility, discuss the mandate, and begin KYB and KYC.
Who can apply?
The strategy is open to institutional clients and professional counterparties in the EEA that hold or can acquire cbETH and can deploy on Base. This page is directed only at professional and institutional counterparties in jurisdictions in which Tesseract Investment Oy may lawfully provide its services. Applicants need to understand how a leveraged position behaves in a drawdown. Access is subject to suitability, eligibility, and onboarding.
Important information
Risk and regulatory information.
This page is a marketing communication. It is not investment advice, and not an offer, solicitation, or recommendation to use any product.
The Dedicated Client Vault is a discretionary portfolio management service provided by Tesseract Investment Oy, authorized as a CASP under MiCA by Finland’s Financial Supervisory Authority (FIN-FSA). On-chain yield vaults involve significant risks, including smart contract vulnerabilities and liquidity risk. Dedicated Client Vaults are not regulated financial instruments.
That authorization covers the services Tesseract Investment Oy provides. It does not cover, endorse, or approve the strategy, the crypto-assets involved, or the third-party DeFi protocols the vault deploys into, and it gives no protection against investment loss.
The strategy is leveraged. Key risks include liquidation; cbETH/ETH basis or depeg risk; smart-contract and oracle failure; lending-protocol or Base network disruption; and insufficient market or protocol liquidity during an unwind. The third-party incentive program is reviewed monthly and may change or end without notice; changes may affect the target return.