4 ETH staking choices that say something about your personality
2 min read
Staked Ether (
From my own research, I found a yield farm that will give you about 2% yield when you deposit wstETH (the same as stETH but with a harder peg) and allow you to borrow USD Coin (USDC) against it for 3.5% interest.
You can then swap the USDC for more wstETH and repeat the process, using a 75% loan-to-value ratio, so you don’t get instantly liquidated. If you loop this process five times, you will end up with an APY of over 13% on your wstETH, which itself is earning 5%.
Whatever your personality, it’s possible to find the strategy that works for you, and while it might sound complicated if you have your own decentralized wallet or one on an exchange, most of them can be enacted with just a few clicks. While some bearish types might decry the continuation of overly-ebullient risk-taking, I see the trend in LSDs as part of the birth of a new yield-bearing asset: ETH.
One day, stETH might even rival the traditional bond market. After all, if governments can run trillion-dollar economies essentially as derivatives of their own bond market, what are a few validator nodes among crypto friends?
Nathan Thompson is the lead tech writer for Bybit. He spent 10 years as a freelance journalist, mostly covering Southeast Asia, before turning to crypto during the COVID-19 lockdowns. He holds joint honors in communication and philosophy from Cardiff University.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
