12 Liquid Staking Strategies From Top Protocols
12 Strategies with 4 LSDs across 3 risk profiles
Keeping our Liquid Staking Series going strong, here are 12 strategies for deploying your ETH LSD tokens from top protocols including Lido, Rocketpool, Stakewise, and Frax Finance.
Catch up on the importance of liquid staking here.
Notes On Example Strategies
-It is usually the case that seemingly unsustainable APRs are indeed only sustained by the inflationary printing of new tokens. Unreasonable inflationary tokenomics often destroy the asset price over time. Skilled yield farmers move quickly to capture unsustainable APRs before swapping into better stores of value. Always consider the tokenomics of both your staked and rewarded tokens.
-Because the stablecoin strategies require you to swap any given LSD for stablecoins, it follows that each of these stablecoin strategies are applicable to any of these assets.
-There is always depeg risk with backed assets, including any liquid staking derivatives.
Lido Finance
Degen Strategy Yield = 37% APR
Links
Stablecoin Strategy - Curve's 3 Pool
Serious Business - Alluo App’s ‘stETH - ETH’ Pool
Definitely Degen - Beethoven X's 'Lido's Swan Song' Pool
Defi Llama's stETH Yield Search
Defi Llama’s Stablecoin Pools Search
Rocketpool
Degen Strategy Yield = 46% APR
Links
Stablecoin Strategy - AAVE's USDT Supply Pool
Serious Business - Beethoven X's 'Rocket Fuel' Pool on Optimism
Definitely Degen - Aura Finance’s ‘rETH x BADGER’ Pool
Defi Llama’s rETH Yield Search
Stakewise
Degen Strategy Yield = 30% APR
Links
Stablecoin Strategy - Compound’s USDC Supply Pool
Serious Business - Stakewise’s ‘sETH2 - ETH’ Pool
Definitely Degen - Stakewise’s ‘sETH2 - SWISE’ Pool
Frax Finance
Degen Strategy Yield = 17% APR
Links
Stablecoin Strategy - Beefy Finance’s ‘USDD/FRAX/USDC’ Pool
Serious Business - Frax Finance’s Fraxlend
Definitely Degen - Concentrator’s ‘frxETH - ETH’ Pool
Thank you for reading!
Disclaimer: Opinions here are my own. None of this is financial or investment advice. You should always do your own research, form your own opinions and make your own decisions.