Article reprinted from: Felix
Author: Stephen, Crypto KOL
Compiled by: Felix, PANews
Currently, sustainable and scalable ETH yields above 20% are rare. Crypto KOL Stephen has summarized strategies that keep the annual interest rate (APR) above 20%.
wstETH
wstETH can be said to be the most popular, competitive, and scalable strategy in history. Even in the most pessimistic bear markets, the APR usually ranges from 8% to 30%.
wstETH works by leveraging the staking yield of ETH (about 3%) to offset the cost of borrowing ETH (about 2%).
There are four excellent places to operate:
Morpho Labs
Aave
Compound Growth
Euler Labs
Currently, the APR of this strategy is approximately between 26% to 46%. Of course, you can use Contango to automatically leverage these positions to generate TANGO points, OP emissions, etc.
Leveraged weETH
This strategy is similar to the previous one, but it also qualifies for various points and emissions. Therefore, the average yield of this strategy is slightly higher:
ether.fi points
Veda points
LRT2 points
EigenLayer programmatic rewards (such as $LRT2)
The three blue-chip money markets are the best places for leverage:
Compound Growth
Aave
Morpho Labs
Before considering LRTsquared, EtherFi S4, and Veda points, the APR ranges from 22% to 36%. The actual yield after considering points may be over 50%.
Note: Although Morpho currently ranks first in APR, the gap among the top three protocols is not significant, so hedging between them can often yield 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 with 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 liquidation loan-to-value ratio (LLTV) is 65%, so let's look at some reasonable positions:
Loan-to-Value Ratio (LTV) 50%
Relative AERO liquidation increase: 30%
Total yield rate for ETH collateral: 100% APR
Loan-to-Value Ratio 25%
Relative AERO liquidation increase: 160%
Total yield rate for ETH collateral: 54% APR
ynETH
Spectra is a competitor of Pendle, and although it has recently sparked some excitement with its USR pool, its launch of the ynETH pool also provides some market opportunities.
With 0 boost, the APR is 33%, while with boost, the APR can reach 100%.
It is worth noting that if Spectra becomes a real competitor, holding/locking SPECTRA may yield good results, so increasing some exposure to enhance returns may not be bad.
gmETH
This strategy is somewhat controversial as gmETH has experienced principal loss.
gmETH is the so-called 'Counter Party Vault'. When traders on GMX achieve excess returns, it falls relative to ETH. Conversely, this has been the norm in the past.
You can implement this strategy at Dolomite, where the current annual interest rate is about 30%, with a historical average annual interest rate of about 20%.
GMWETH (Umami)
This strategy is very similar to the previous position but it hedges most of the delta and risks.
Although the current APR is about 16.5%, historically it has been quite high (around 50%), and in the medium-term future, the average APR will exceed 20%.
pufETH
Despite increased competition recently, pufETH has long been a gold mine. Its historical APR has ranged from 15-50% with very low rebalancing.
This is like a hidden gem, although it won't last forever.
Sustainable and scalable ETH yields above 20% are rare.
You can find some smaller yet still incredible opportunities at places like D2LFinance, but when it comes to smaller positions for lesser yields, making them too public is self-deceptive.
Related Reading: A summary of the seven major DeFi staking platforms in 2025: How to maximize returns?
