eETH
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Points Farming on Leverage
If you head over to the yield trading protocol Pendle, you might notice that yields on eETH are over 26%, way higher than normal ETH staking yields elsewhere. But why is that?
Users are essentially pushing up the implied yield of eETH by purchasing eETH Yield Tokens, allowing them to earn a yield of up to 10x their initial deposit. For example, with 1 ETH, users can gain exposure to 10 ETH worth of yield. Additionally, a major part of this movement stems from the current points incentives to Yield Token holders, allowing them to also earn EigenLayer Points and double the Ether.fi points on their leveraged position.
However, it's important to note that this strategy does not come without risk. Should the value of the Yield Tokens trend back down due to missed snapshots or a delayed airdrop, users could risk losing up to 99.3% of their initial deposit.
#ETH
#eETH
If you head over to the yield trading protocol Pendle, you might notice that yields on eETH are over 26%, way higher than normal ETH staking yields elsewhere. But why is that?
Users are essentially pushing up the implied yield of eETH by purchasing eETH Yield Tokens, allowing them to earn a yield of up to 10x their initial deposit. For example, with 1 ETH, users can gain exposure to 10 ETH worth of yield. Additionally, a major part of this movement stems from the current points incentives to Yield Token holders, allowing them to also earn EigenLayer Points and double the Ether.fi points on their leveraged position.
However, it's important to note that this strategy does not come without risk. Should the value of the Yield Tokens trend back down due to missed snapshots or a delayed airdrop, users could risk losing up to 99.3% of their initial deposit.
#ETH
#eETH
