How ETH Generates Revenue: Explore 16 Yield Strategies with APR Over 20%
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How ETH Generates Revenue: Explore 16 Yield Strategies with APR Over 20%
including strategies such as wstETH, leveraged weETH, and AERO mining.
Navigating Web3 tides with focused insightsAuthor: Stephen, Crypto KOL
Translation: Felix, PANews
Sustainable and scalable ETH yields >20% are currently uncommon. Crypto KOL Stephen outlines strategies that maintain annual percentage rates (APR) above 20%.
wstETH
wstETH is arguably the most popular, competitive, and scalable strategy in history. Even during the deepest bear markets, APR typically ranges between 8% and 30%.
The wstETH strategy works by using ETH staking yield (approximately 3%) to offset the cost of borrowing ETH (around 2%).
Four excellent platforms for executing this strategy:
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Morpho Labs
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Aave
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Compound Growth
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Euler Labs
Current APR for this strategy ranges from approximately 26% to 46%. Additionally, you can use Contango to automatically leverage these positions and generate TANGO points, OP emissions, etc.
Leveraged weETH
This strategy is similar to the previous one but also qualifies for various points and emissions, resulting in slightly higher average returns:
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ether.fi points
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Veda points
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LRT2 points
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Proactive rewards from EigenLayer (e.g., $LRT2)
Three blue-chip money markets are ideal for leveraging:
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Compound Growth
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Aave
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Morpho Labs
APR ranges from 22% to 36% before considering LRTsquared, EtherFi S4, and Veda points. Actual yields after accounting for points may exceed 50%.
Note: Although Morpho currently leads in APR, the gap among the top three protocols is small. Therefore, hedging across them often allows you to achieve the most competitive and consistently high APR (helping hedge against volatile borrowing rates).
AERO Mining
Compound Growth is currently paying users fees for borrowing AERO collateralized with cbETH, ETH, and wstETH.
Simultaneously, on Aerodrome, voting can earn approximately 200% APR in AERO.
Of course, the loan-to-liquidation value ratio (LLTV) is 65%, so let's examine some reasonable positions:
Loan-to-value (LTV): 50%
Relative AERO liquidation buffer: 30%
Total ETH-collateralized yield: 100% APR
LTV: 25%
Relative AERO liquidation buffer: 160%
Total ETH-collateralized yield: 54% APR
ynETH
Spectra is a competitor to Pendle. Although it recently gained attention due to its USR pool, its newly launched ynETH pool also presents certain market opportunities.
At 0 boost, APR is 33%; with boosting, APR can reach up to 100%.
Notably, if Spectra becomes a true competitor, holding or locking SPECTRA could prove highly effective. Thus, taking on some additional yield-generating exposure might not be a bad idea.
gmETH
This strategy is somewhat controversial because gmETH has previously experienced principal loss.
gmETH is what’s known as a "counterparty vault." When traders on GMX achieve excess profits, gmETH depreciates relative to ETH. The reverse has historically been more common.
You can execute this strategy on Dolomite, where current APR is around 30%, with a historical average APR of approximately 20%.
GMWETH (Umami)
This strategy is very similar to the previous one but hedges most of the delta and risk.
Although current APR is about 16.5%, historically it has been quite high (around 50%), and in the medium term, average APR is expected to exceed 20%.
pufETH
Despite increasing competition recently, pufETH has long been a gold mine. This LP (30bps fee tier) has historically delivered APR between 15–50%, with extremely low rebalancing.
It's like a hidden gem—though it won't last forever.
Sustainable and scalable ETH yields >20% are uncommon.
You can find some smaller yet still incredible opportunities on platforms like D2LFinance, but when dealing with smaller positions generating modest returns, making them too public is self-defeating.
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