3 Simple Strategies To Earn With Your Lido stETH
You don’t have to be a DeFi pro to earn yields from your stEth. Not surprisingly, many holders let their stEth sit idly by because they find the yield maximization process complex. But, by leveraging your stEth wisely, you can make 6%-10% more with your tokens.
Once you liquid stake your ETH via Steakwallet, you can kickstart earning yields on your stETH in three steps or less through the below strategies. Let’s walk through the ways in which you can earn more!
- How to pick your strategy
- Strategy 1: Earn 5.91% APY using Concentrator and Curve
- Strategy 2: Gain 1%-8% APY using Idle Finance
- Strategy 3: Earn 3.64% with the best automated strategy on Yearn vaults
How to pick your strategy
Before delving into a specific strategy, there are 3 things you need to consider to determine how you can maximize your returns:
- Position Size
- Deposit Time Period
- Risk Tolerance
Position Size
Since we are dealing with the Ethereum chain, the amount of gas fees in relation to the amount that you want to deposit might not make sense. To farm your tokens at a decent risk, we recommend that you use at least $10,000 worth of your token.
For depositing lower values, wait until Ethereum moves to the Proof-of-Stake model (suspected to happen in August 2022) to skip the gas hassle. In the meantime, buy small amounts of ETH every month (Dollar Cost Averaging) and add that position on Lido.
Deposit Time Period & Risk Tolerance
If you are only looking to lock your funds for a few months, then pay attention to withdrawal fees in relation to APY.
DeFi projects are often vulnerable to security breaches. Decide the amount of risk you are willing to tolerate before choosing your strategy.
Strategy 1: Earn 5.91% APY using Concentrator and Curve
Avid DeFi users rely on farming pools to increase yield, especially during bear markets. One of our favorites is Concentrator because it is simple to use and provides tasty returns on Curve tokens.
So how do you start earning? Let's jump right in.
Step 1: Use curve.fi to deposit stETH on the curve stETH-ETH pool (don’t stake in the Curve gauge). You will receive Curve steth LP tokens in return.
Step 2: Deposit the Curve steth on Concentrator.
At the time of this writing, you can earn rewards of 5.91% APY on your stethCRV, which will be swapped to cvxCRV and deposited in the Concentrator auto-compounding pool.
Requirements & Fees:
Resources:
Strategy 2: Gain 1%-8% APY using Idle Finance
Do you prefer taking high risks to pursue high rewards or lower risks to collect lower but more stable rewards? With Idle, you can choose your yield strategy based on your risk tolerance.
Idle Finance collaborated with Lido to let users choose between two risk-adjusted financial products for ETH2 staking – Junior tranche (high risk) and Senior tranche (low risk). Junior tranches take on extra smart contracts and financial risks while Senior tranches are compensated with funds from Junior tranches during cases of smart-contract breach.
Step 1: On Idle Finance, either deposit in the high risk (8.57% APY) tranche or low risk (1.32% APY) tranche.
Rewards will be auto-reinvested.
Requirements & Fees:
Resources:
Strategy 3: Earn 3.64%APY with the best automated strategy on Yearn vaults
Yearn is a DeFi automated yield aggregator platform that auto compounds users' rewards for them.
Step 1: Use curve.fi to deposit stETH on the Curve stETH-WETH pool (don’t stake in the Curve gauge). You will receive Curve factory-v2-117 LP tokens in return.
Step 2: Deposit the Curve LP token on Yearn Finance into Curve stETH-wETH Pool yVault to start earning 3.64% APY. Reward is deposited back into the strategy for additional earning.
Requirements & Fees:
Resources:
Remember, while we love to share which projects we've been into, please remember to always DYOR on new protocols!
More on Steakwallet
Steakwallet is a next generation multi-chain self-custodial Web3 wallet on mobile. Our goal is to give users one place to manage all their assets across chains and make engaging with Web3 as easy as never before. To achieve this, Steakwallet brings critical functionality natively into the app where we abstract away backend complexity and add market leading user experience. This includes Steakwallet’s signature 3-tap staking flows, which make participating in securing blockchain networks and earning yield as simple as ordering an Uber or a pizza. With our Explore Screen, Steakwallet allows you to find all the right dApps on any chain. With one simple tap via WalletConnect, you can now easily bridge, swap, and ape into any yield opportunity right from your phone. And with multi-chain NFT support, you can collect all of your favorite NFTs in one place and even set them as your background for to easily flex your collection. Now this is what a Web 3 wallet should look like!
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