Leveraged liquid staking
How leveraged liquid staking strategies can work with LIDO and our new adapter.
With the Gearbox integration, you are able to lever up staking as per your risk and debt [borrowed] asset preference to get access to true leveraged staking… But that’s just the tip of the iceberg. Beyond the leveraged ETH, it’s the stETH you receive that enables composability across multiple more DeFi protocols. And each protocol enables you to earn even more APY. Here are the possible strategies, all available through One Click.
The stETH is what you receive when you stake ETH, with the ability to deploy directly on the LIDO protocol. stETH ideally is supposed to maintain a peg against ETH but market conditions can make it lose peg which can lead to your health factor dropping, this has previously happened and you should manage your risk accordingly. Depends on your debt asset too!
The yield here is the rebasing stETH rewards you receive. If they are more than the borrow rates you receive, this fully makes sense. This also makes sense if you went ETH-long relative to stablecoin debt: Farming Long/Short or "Free Leverage Position"
Convex Finance allows users to stake steCRV LP tokens into their vault, to farm LDO, CVX, trading fees, as well as boosted CRV rewards — without the need for users to lock-up CRV themselves. This is on top of the staking APY of stETH (the portion that remains as stETH inside Curve pool).
Yield: a mix of CVX, LDO, boosted CRV, staking yields, and trading fees of Curve pool.
Yearn has very similar sources of yield to Convex but unlike convex it sells off some of the rewards earned to then redeposit ETH/stETH into the vault. Without fees, usually has higher performance.
Yield: a mix of CVX, LDO, boosted CRV, staking yields, and trading fees of Curve pool.
The Curve stETH Pool takes Lido stETH (liquid staked ETH), puts it in a curve pool with vanilla ETH.
Yield: a mix of LDO, CRV, staking yields, and trading fees of Curve pool.
Last modified 7mo ago