ETH Strategy
About
ETH Strategy is an autonomous treasury protocol that accumulates ETH through convertible note issuance, providing leveraged ETH exposure without liquidation risk. The protocol functions as a DeFi-native analogue to MicroStrategy's MSTR, using zero-interest debt to grow its ETH treasury. STRAT token holders gain exposure to a growing ETH treasury while earning yield from protocol revenue streams.
Where Does Yield Come From?
ETH Strategy generates yield for STRAT token holders through several real revenue streams:
1. Revenue from convertible notes
People can buy special notes with ETH that give them the right to convert to STRAT tokens later. The value of this conversion right acts like a premium that the protocol earns—no cash interest is paid.
2. Lending interest
STRAT holders can borrow a token called esETH from the treasury by using their STRAT and CDT as collateral. They pay fixed interest over 6‑month terms. This interest flows to STRAT stakers as esETH rewards, distributed evenly over 7‑day periods.
3. Options trading
The protocol runs a vault that sells call options on ETH (through Derive). This earns premium income from ETH’s price volatility.
4. Staking rewards
The treasury’s ETH is placed into several liquid staking tokens (like wstETH, rETH, weETH, OETH) via a non‑rebasing wrapper called esETH. This collects the underlying staking rewards from those tokens.
All of this revenue goes to STRAT holders through staking rewards. The protocol does not create new tokens to pay yield—instead, the yield comes from actual economic activities.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Nethermind13-08-2025 - 19-08-2025 |
| The audit revealed no critical, high, or medium severity vulnerabilities, with only minor informational and best practice recommendations, indicating a secure codebase for the limited scope of 105 lines of Solidity. |
Backers
ETH Strategy raised a total of 8,142 ETH in its initial presale. The private placement raised 6,900 ETH from strategic investors, builders, whales, and high-signal Ethereum supporters. A public presale raised 1,242 ETH. Both rounds were conducted at the same price of 1 ETH : 10,000 STRAT with identical vesting terms: a 4-month cliff followed by a 2-month linear unlock. Early supporters are referred to as "PreSaylors." No specific VC firms or named funds are disclosed in official sources.
Legal
Legal form
Company (Jeet Industries Inc.)
Registration jurisdiction
Republic of Panama (Panama Company No. 155760678)
Status and notes
ETH Strategy is operated by Jeet Industries Inc., a company incorporated in Panama. The website includes Terms of Service and Privacy Policy that disclose the entity details, registered address in Panama City, and compliance with Panamanian law. Services are not offered to users in prohibited jurisdictions including the United States.