# Joining Forces

By [MegaStrategy Labs](https://paragraph.com/@megastrategy) · 2025-03-06

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In crypto, conviction isn’t enough – distribution wins. While MegaStrategy built one of the most compelling volatility models for ETH accumulation, we needed to solve the cold-start problem for onchain leverage.

Today, we’re excited to announce that MegaStrategy is joining forces with [ETH Strategy](https://x.com/eth_strategy) to accelerate the path towards a new DeFi primitive – one that transforms how users gain leveraged exposure to ETH without the pitfalls of traditional leverage products. (_Real yield, ouroboros free._)

### **what it takes**

While volatility lies at the heart of the strategy, in order to get the flywheel going we need both deep liquidity and fundamental demand.

_ETH Strategy solves this._

Their team started with similar mechanics to ours (_they have an OG gamma scalper_). But they realized early on that without these two pillars, scaling into a billion-dollar protocol would be impossible.

To bridge the gap, they’ve built a mechanism that seeds liquidity while ensuring long-term demand from users seeking _high-beta ETH exposure –_ without being rugged by liquidations or forced rebalancing.

### how we win

ETH Strategy reimagines Saylor’s playbook and replaces forced liquidations with structured convertibility. Here’s how it works:

1.  Users sell ETH and bond in stablecoins, receiving two separate assets:  
    • Tokenized perpetual debt (denominated in USD, with market liquidity)  
    • Option NFT (which retains upside in ETH)
    
2.  The perpetual debt token (CDT) will naturally trade below $1 as users exit their debt, but it remains critical to exercising the option
    
3.  If CDT trades too low, it creates a natural arbitrage opportunity for buyers to capture ETH exposure at a discount – stabilizing the system
    

This novel approach solves the cold-start problem and establishes a self-sustaining mechanism to build the largest onchain treasury of ETH.

Crucially, paired with deep liquidity, it unlocks the volatility trade _at scale_.

### looking forward

Our core innovation is the idea that ETH accumulation can be turbocharged by volatility itself. That vision remains unchanged – only now, we have the right foundation to make it a reality.

By merging our expertise in harnessing volatility, MegaStrategy will help ETH Strategy scale its convertible issuance model and optimize the capital formation strategy.

This isn’t your typical merger – _it’s an acceleration_. Together, we’re unlocking the next evolution of ETH leverage – one where users can hold high-beta ETH exposure without the liquidation traps of legacy DeFi.

### stronger together

Both projects started with the same fundamental belief:

_Ethereum is the foundation of digital property rights, and the best way to maximize its value is through structured leverage – not forced liquidations._

Now, we’re combining forces to bring that vision to life.

If you’re interested in leveraged ETH accumulation, onchain volatility strategies, or next-gen DeFi primitives – _now is the time to get involved_.

_(Apes stronger together_.)

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*Originally published on [MegaStrategy Labs](https://paragraph.com/@megastrategy/joining-forces)*