16 Ethereum 20% Annual Yield Strategies: wstETH, Leveraged weETH, AERO Mining..

This article is based on a piece by Stephen, introducing ETH yield strategies including wstETH, leveraged weETH, and AERO mining, compiled, translated, and written by PAnews. (Background: Low-risk arbitrage, a review of emerging 'yield stablecoins') (Background Supplement: Perspective) Why Binance's 'Yield Margin BFUSD' could potentially change the exchange stablecoin ecosystem? Currently, sustainably and scalable ETH yields over 20% are rare, and crypto KOL Stephen reviewed strategies that maintain an annual percentage rate (APR) above 20%. wstETH wstETH can be said to be the most popular, competitive, and scalable strategy in history. Even in the lowest bear markets, the APR typically ranges from 8% to 30%. The way wstETH works is by using the staking yield of ETH (around 3%) to offset the borrowing cost of ETH (about 2%). There are four excellent places to operate: Morpho Labs Aave Compound Growth Euler Labs Currently, the APR for this strategy is between 26% and 46%. Of course, you can use Contango to automatically leverage these positions to generate TANGO points, OP emissions, and more. Leveraged weETH This strategy is similar to the previous one, but it also qualifies for various points and emissions. Therefore, the average yield for this strategy is slightly higher: ether.fi points Veda points LRT2 points EigenLayer programmatic rewards (like $LRT2) The three blue-chip money markets are the best places to leverage: Compound Growth Aave Morpho Labs Considering LRTsquared, EtherFi S4, and Veda points, the APR ranges from 22% to 36%. The actual yield after considering points could be over 50%. Note: Although Morpho currently has the highest APR, the gap between the top three protocols is not large, so hedging between them can usually give you the most competitive and consistently high APR (which can hedge against unstable borrowing rates). AERO Mining Compound Growth is currently paying users to borrow AERO using cbETH, ETH, and wstETH as collateral. At the same time, you can earn about 200% APR in AERO through voting on Aerodrome. Of course, the loan-to-value ratio (LLTV) is 65%, so let's look at some reasonable positions: Loan-to-value ratio (LTV) 50% relative to AERO liquidation increment: 30% Total ETH collateral yield: 100% APR Loan-to-value ratio 25% relative to AERO liquidation increment: 160% Total ETH collateral yield: 54% APR ynETH Spectra is a competitor to Pendle, and although it has recently generated some buzz with its USR pool, the ynETH pool it launched also provides some market opportunities. With 0 boost, the APR is 33%, and under boost conditions, the APR can reach 100%. It is worth noting that if Spectra becomes a real competitor, holding/locking SPECTRA could have a good effect, so increasing some risk positions to enhance yields might not be a bad idea. gmETH This strategy is somewhat controversial because gmETH has experienced principal losses. gmETH is known as the 'Counter Party Vault'; when traders on GMX gain excess returns, it tends to drop relative to ETH. The opposite is also true, as has been the norm in the past. You can implement this strategy on Dolomite, and the current annual interest rate is around 30%, with a historical average of about 20%. GMWETH (Umami) This strategy is very similar to the previous position but hedges most of the delta and risk. Although the current APR is around 16.5%, historically it has been quite high (around 50%), and in the medium-term future, the average APR will exceed 20%. pufETH Despite recent competition becoming fiercer, pufETH has long been a gold mine. The historical APR for this LP (30bps fee tier) has ranged between 15-50%, and the rebalancing level is extremely low. It's like a hidden gem, even though it won't last forever. Sustainably and scalable ETH yields over 20% are rare. You can find some smaller but still incredible opportunities at places like D2LFinance, but when it comes to smaller positions for smaller yields, making them too public is self-deception. Related Reports Binance officially launches 'Yield Margin BFUSD' with up to 30% annual yield, what are its features and risks? Goodbye to the pain of decline, the 'stablecoin yield' strategies of major public chains are here Paxos's new yield stablecoin 'USDL' distributes 5% daily returns, can it shake the monopoly of USDT and USDC? '16 Ethereum 20% annual yield strategies: wstETH, leveraged weETH, AERO mining...' this article was first published in BlockTempo (BlockTempo - the most influential blockchain news media).