Staking vanilla ether (ETH) is generating eye-catching yields for crypto hopefuls amid a broader market crisis with returns on most fixed-income crypto products dropping as low as 0%.
The decentralized finance (DeFi) market is muscling on. Users simply staking staked ether (stETH) at staking service Lido are earning as much as 10.7% – an all-time high since the Merge event – with even higher returns for holders as the value of stETH increases.
Yields of stETH have jumped to all-time highs since the Merge. (Delphi)
“Recently, the liquid staking protocol also had to increase rebasing oracle limits from 10% to 17.5% to let the increased rewards flow to stETH token holders,” analysts at Delphi Digital said in a Friday note. Rebasing, or elastic, tokens are cryptocurrencies that automatically adjust supply levels to maintain a constant value.
The increased rewards have led to related borrowing strategies offering yields of as much as 25.5% on the Interest Compounding ether product (icETH) offered by Index Coop.
(By Shaurya Malwa)
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