Publication Date: June 12, 2023
This basket is for those who want to hold Ethereum for a relatively long period of time (6 months - 1 year) and earn 2-2.5x of the typical staking yield and LP fees.
Using Flash loans, a 2-2.5x leveraged staking position is created, which earns Ethereum’s staking rewards at a higher rate.
When someone stakes ETH tokens, they earn a return of 4-8%. However, the staked ETH tokens themselves are not immediately available for sale. To address this limitation, LIDO offers a solution known as stETH tokens. Each stETH token represents one staked ETH and can be freely traded on the market. Whether a person stakes one ETH or holds one stETH, they will receive staking rewards in the range of 4-8%. However, if someone uses one ETH as collateral to borrow 2-2.5 stETH tokens, their position would earn a multiplied staking reward of 2-2.5 times, resulting in a range of 8-20% return.
ETH
Ethereum
LIDO, Curve, Oasis, Compound v2, Balancer
TBD