3 simple strategies to earn with your Lido stETH

You don’t have to be a DeFi pro to earn yields from your stEth. Not surprisingly, many holders let their stEth sit idly by because they find the yield maximization process complex. But, by leveraging your stEth wisely, you can make 6%-10% more with your tokens.

Once you liquid stake your ETH via Omni, you can kickstart earning yields on your stETH in three steps or less through the below strategies. Let’s walk through the ways in which you can earn more!

How to pick your strategy

Before delving into a specific strategy, there are 3 things you need to consider to determine how you can maximize your returns:

• Position Size

• Deposit Time Period

• Risk Tolerance

Position Size

Since we are dealing with the Ethereum chain, the amount of gas fees in relation to the amount that you want to deposit might not make sense. To farm your tokens at a decent risk, we recommend that you use at least $10,000 worth of your token. 

For depositing lower values, wait until Ethereum moves to the Proof-of-Stake model (suspected to happen in August 2022) to skip the gas hassle. In the meantime, buy small amounts of ETH every month (Dollar Cost Averaging) and add that position on Lido. 

Deposit Time Period & Risk Tolerance

If you are only looking to lock your funds for a few months, then pay attention to withdrawal fees in relation to APY.

DeFi projects are often vulnerable to security breaches. Decide the amount of risk you are willing to tolerate before choosing your strategy.

Strategy 1: Earn 5.91% APY using Concentrator and Curve

Avid DeFi users rely on farming pools to increase yield, especially during bear markets. One of our favorites is Concentrator because it is simple to use and provides tasty returns on Curve tokens.

So how do you start earning? Let's jump right in. 

Step 1: Use curve.fi to deposit stETH on the curve stETH-ETH pool (don’t stake in the Curve gauge). You will receive Curve steth LP tokens in return.

Step 2: Deposit the Curve steth on Concentrator. 

At the time of this writing, you can earn rewards of 5.91% APY on your stethCRV, which will be swapped to cvxCRV and deposited in the Concentrator auto-compounding pool.

Requirements & Fees:

Resources:

• About Concentrator

• Deposit process walkthrough

• Video Review on Concentrator

Strategy 2: Gain 1%-8% APY using Idle Finance

Do you prefer taking high risks to pursue high rewards or lower risks to collect lower but more stable rewards? With Idle, you can choose your yield strategy based on your risk tolerance.

Idle Finance collaborated with Lido to let users choose between two risk-adjusted financial products for ETH2 staking – Junior tranche (high risk) and Senior tranche (low risk). Junior tranches take on extra smart contracts and financial risks while Senior tranches are compensated with funds from Junior tranches during cases of smart-contract breach.

Step 1: On Idle Finance, either deposit in the high risk (8.57% APY) tranche or low risk (1.32% APY) tranche.  

Rewards will be auto-reinvested.

Requirements & Fees:

Resources:

• About Idle Finance

• Video Review

Strategy 3: Earn 3.64% APY with the best automated strategy on Yearn vaults

Yearn is a DeFi automated yield aggregator platform that auto compounds users' rewards for them.

Step 1: Use curve.fi to deposit stETH on the Curve stETH-WETH pool (don’t stake in the Curve gauge). You will receive Curve factory-v2-117 LP tokens in return.

Step 2: Deposit the Curve LP token on Yearn Finance into Curve stETH-wETH Pool yVault to start earning 3.64% APY. Reward is deposited back into the strategy for additional earning.

Requirements & Fees:

Resources:

• About Yearn Vaults

• Yearn Review