Staking ether is resulting in impressive yearly yields of up to 25.5% as activity on the Ethereum network increased in recent days.
Not a bad ROI in a bear market where stock market returns are turning negative and centralized platforms like Gemini and Circle saw yields drop to 0% due to the FTX fallout.
Much like the Terra LUNA contagion in July, the recent FTX bankruptcy has again put decentralized finance (DeFi) in the limelight.
Users staking their ETH tokens at liquid staking service Lido may now earn up to 10.7% – an all-time high reached in recent days. That number has since fallen to 6.4% on the leading liquid staking platform Lido.
Lido lets users stake their ETH tokens and, in return, gives them an equivalent quantity of stETH (staked ETH) which is pegged to the value of the actual ETH token and can also be further used in DeFi applications.
Increase your liquid staking returns
Yields of stETH have jumped to an ATH since the Merge, via Blockworks.
Eth stakers with a keen appetite for risk can further stake their stETH in DeFi platforms and receive a higher yield still.
Index Coop’s Interest Compounding Ether (icETH) saw interest rates reach up to 25.5% in recent days, however, this number has since fallen to 9.72% as on-chain activity pulled back.
How it works
The Interest Compounding ETH Index (icETH) uses a leveraged staking approach to boost staking rewards. The technique uses stETH tokens (received by staking ETH on Lido) as collateral on DeFi lending service Aave to borrow wrapped ether (WETH) – a token that tracks ether – and then purchase additional stETH tokens recursively.
Since icETH leverages the value of stETH, which is dependent on activity on Ethereum, it saw a compounding effect on its APY due to increased activity on Ethereum in the past week. However, these high yields also come with risks.
“icETH is subject to similar systemic and idiosyncratic risks as the rest of DeFi—like currency risk, smart contract risk, oracle risk—but liquidation risk and interest rate risk are especially important for token holders to understand,” according to Indexcoop.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cloudflare sets this cookie to identify trusted web traffic.
The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
This cookie is installed by Google Analytics.
A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The pattern element in the name contains the unique identity number of the account or website it relates to.
Provided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
5 months 27 days
This cookie is set by the Google recaptcha service to identify bots to protect the website against malicious spam attacks.
This cookie is managed by Amazon Web Services and is used for load balancing.
This cookie is used for authentication and for secure log-in. It registers the log-in information.
Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
Records the default button state of the corresponding category & the status of CCPA. It works only in coordination with the primary cookie.