Author: Stephen, cryptocurrency KOL
Compiled by: Felix, PANews
Sustainable, scalable, and >20% ETH yields are currently uncommon. In this article, cryptocurrency KOL Stephen reviews a series of strategies that can maintain annual interest rates (APR) above 20%.
wstETH
wstETH is arguably the most popular, competitive, and scalable strategy in history. Even in the most depressed bear markets, APRs typically range from 8% to 30%.
The working principle of wstETH is to use the pledge yield of ETH (about 3%) to offset the cost of borrowing ETH (about 2%).
There are four great places to do it:
Morpho Labs
Ghost
Compound Growth
Euler Labs
The APR on this strategy currently ranges from approximately 26% to 46%. Of course, you can use Contango to automatically utilize these parts to generate TANGO points, OP emissions, etc.
Leverage weETH
This is the same as the previous strategy, except you are also eligible for various points and emissions. Therefore, the average return for this strategy is slightly higher:
ether.fi points
Veda Points
LRT2 Points
EigenLayer programmatic rewards (e.g. $LRT2)
Three blue-chip money markets are the best places to leverage:
Compound Growth
Ghost
Morpho Labs
APR ranges from 22% to 36% before accounting for LRTsquared, EtherFi S4, and Veda points. The actual rate of return after taking points into account may be over 50%.
Note: Although Morpho currently has the#1APR, the top three protocols are not that far apart, so hedging between them will usually get you the most competitive APR (which can hedge against volatile borrowing rates).
AERO Mining
Compound Growth is currently paying users to borrow AERO against cbETH, ETH, and wstETH.
At the same time, you can get AERO by voting on Aerodrome with about 200% APR.
Of course, the liquidated loan-to-value (LLTV) ratio is 65%, so look at some reasonable positions:
Loan-to-value ratio (LTV) 50%
Relative AERO liquidation growth: 30%
ETH mortgage total yield: 100% APR
Loan to value ratio 25%
Relative AERO liquidation growth: 160%
ETH mortgage total yield: 54% APR
inETH
Spectra is a Pendle competitor, and while it has generated some recent buzz with its USR pool, its launch of an ynETH pool also offers some market opportunity.
At 0 boost, the APR is 33%, and with boost, the APR can reach 100%.
It's worth noting that holding/locking in SPECTRA might work out well if Spectra becomes a true competitor, so adding some yield-enhancing exposure might not be so bad.
gmETH
This strategy is somewhat controversial, as gmETH has experienced principal losses.
gmETH is the so-called "Counter Party Vault". When traders on GMX receive excess returns, it will fall relative to ETH. Vice versa is also the norm in the past.
You can implement this strategy on Dolomite, where the current interest rate is around 30% APR and the historical average APR is around 20%.
GMWETH （Umami ）
This strategy is very similar to the previous position, but it hedges most of the delta and risk.
While the current APR is around 16.5%, it has historically been quite high (around 50%), and in the mid-term future, the average APR will be over 20%.
pufETH
Despite more recent competition, pufETH has been a gold mine for a long time. Historical APR for this LP (30bps fee tier) has been between 15-50% with minimal rebalancing.
It's like a hidden gem, although it won't be there forever.
Sustainable and scalable ETH yields >20% are uncommon.
You can find some smaller but still incredible opportunities in places like D2LFinance, but when it comes to smaller positions for smaller gains, it's self-defeating to make them too public.
(The above content is excerpted and reprinted with the authorization of our partner PANews, original text link)
Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.
"How to "make money in the right way" with ETH in hand? Sharing 16 income strategies with APR of more than 20%" This article was first published on (Block Guest).
