Hi guys and welcome in this new video! In this new weekly deep dive

We'll talk about the Ethereum staking solutions that are currently available and their yield

And we'll also cover a bonus strategies that offers a higher yield on Ethereum than th staking

Before we begin as usual, I remind you to subscribe to the channel

Because most of the people who watch my videos are not yet subscribed as you can see!

That said it's time to begin!

Opening...

As you probably know the majority of centralized exchanges

Let you partecipate in the staking of Ethereum 2.0 thanks to a liquid staking token

If we look into the OKX's solution you can see that I can convert my ETH into BETH

In order to gain this 4.06% staking yield

And you can find this kind of solution in the majority of cexs

A best practice in this case is not to convert directly ETH to BETH but instead buy it in the spot market

Indeed if we look at the chart BETH/ETH we can see that 1 BETH equals to 0.98 ETH

This happens due to the supply & demand law and reflects the sentiment of the holders

The BETH version is not redeemable at 1:1 ratio at the moment

Indeed if you want to exit from your staking position you have to sell it

The redemption from BETH to ETH at 1:1 ratio will be implemented in the future by the Ethereum Foundation

We'll cover this topic later but I can spoiler that this should happen within 6 months

So, let's make a quick recap, if you are in a cex it's not convenient to convert ETH

If the liquid staking version is worth less than ETH it's better buy it in the spot market

Indeed if you buy BETH in the spot market you'll get a little amount more than the ETH you're using to purchase

Let's make an example, if we have 10 ETH and go to the conversion system we'll get 10 BETH

But if we buy BETH in the spot market with the same amount of ETH we'll get 10.2 BETH

So this is the best practice in order to partecipate in the staking using a cex imho

Friendly reminder, if you're a new user in OKX you can get this mystery box with a maximum value of 10k dollars

So, if you want to subscribe into this cex and get this promotion you'll find the reflink in the description

Speaking of the cex's solutions of Ethereum staking I want to say something about Coinbase's cbETH

Unlike the other exchnages this staking solution is a token erc-20

So we can withdraw cbETH and for example use it in DeFi

Please note that this solution (cbETH) is worthing less than BETH of OKX and Binance for example

Indeed 1 cbETH is equal to 0.96 ETH

This means that if we buy cbETH in the spot market with 10 ETH we'll get 10.37 cbETH instead of 10.2 BETH (in OKX)

After we bought cbETH we're gaining the yield staking as well

And in 6 months we can likely redeem cbETH into ETH at 1:1 ratio

So if you're brave enough this can be a good arbitrage opportunity

Another interesting thing about cbETH is that Coinbase can also incentivizes the Curve's pool cbETH/ETH

And this may lead to have also greater yield for those who will provide liquidity in this pool

A user has commented that Coinbase could buy CRV or buy CVX or gives bribes to incentivizes this pool

And this could be helpful for their solution because they'll increase the adoption of cbETH

But at the moment this is only a speculation and there isn't a real confirmation

Perhaps updates will follow

Now that we've look into the cex's solutions about staking that is easy to use, yeah, but you have to trust your exchange

Let's look into the decentralized solutions that can also give us a better yield

And we start deep diving into the most famous solution from Lido Finance

They was the very first to create a decentralized version of liquid staking so they have a great competitive advange

Indeed as you can see the TVL is almost 6 billion dollars

And they have paid out 180 million dollars of rewards

So if you want to stake your ETH through Lido just go into stake section and as you can see there is a 4.9% staking yield

And in exchnage we'll get the liquid staking version called stETH

As you can see Lido services is available also for other networks like Solana, Polygon, POlkadot and Kusama

But we'll only cover the Ethereum solution in this video

Also in Lido you can choose to either mint your stETH

Or go to the spot market and buy it but it's almost at 1:1 ratio with ETH

If you remember when Celsius's FUD raised at the end of may / beginning of June

The price of stETH price has dipped at 0.94/0.95 ETH if I remember well

So for those who have bought the stETH dip they're already in profit versus ETH

That said this solution (stETH) is the most common outside the exchanges but is not the only one and there other solutions interesting as well

So the next solution we'll lok into is a Lido's competitor called Rocket Pool

That is growing well in the last period

The "numbers" between these competitor are totally different and here we have only 242k staked ETH

While Lido has almost 5 million of staked ETH

But the Rocket Pool version is different and someone may also like more this solution

If we look at the APR we can see that Rocket Pool at the moment is paying 5.26% yield that is higher than Lido

But the main difference between this solution and the previous ones is that rETH

The liquis staking token of Rocket Pool

Is not a rebase token unlike the others so it will not increase its circulation

Is a yield bearing token so it accrue staking yield into his price

So in this case it's not a goog idea to buy rETH at the spot market because its price is higher than ETH

This because it has already accrued the staking yield into his price since it exists

Indeed 1 rETH is euqal to 1.03 ETH

And the best way to get it is to mint directly from Rocket Pool dapp

The operation is also very simple because you have just to input the ETH you want to stake

And if we try to stake 10 ETH as you can see we'll get 9.62 rETH for the reason that I already explained

But this amount will not change over time, only the price of rETH will change

Another important difference between Lido and Rocket Pool

Is that the the validators made up by 32 staked ETH

Are assigned to a selected amount of operators direclty choosen by Lido's team

So of course this is a decentralized solution because any user can go with his wallet and mint stETH

But there is some centralization in the node managament made up by our staked ETH

On the other hand the management of the nodes in Rocket Pool has become permissionless

In Rocket Pool we need only 16 ETH instead of 32 ETH in order to setup a node

And we also put some RPL token, the governance token of Rocket Pool, as collateral

In this case the rewards are higher, indeed you can go up to 7.12% staking yield

And also get an extra RPL reward

Now that we have covered the decentralized solution about the Ethereum's liquid staking

I want to deep dive in the bonus strategy that let you earn a greater yield in ETH that the staking

As you can see we're on GMX that is a decentralized perpetual exchange on Arbitrum

In this platfrom we can both trade spot and futures with leverage

And this let use the same features of a cex by using a decentralized solution

For example we can open a trade long or short using different types of order

Like market, limit and trigger, but you can also swap in the spot market

At the moment GMX offers a limit pairs to trade maybe to keep better the liquidity

Speaking about the liquidity let's understand where the yield comes from

Indeed GMX is part of the projects that has the "real yield" factor

This because they not use GMX as an inflationary asseto to pay the liquidity providers

Instead they use the fees generated by the protocols and the losses of the traders to pay the liquidity providers

And they pay out the yield in ETH because we're on Arbitrum

If you want to provide liquidity into GMX you have to buy this token called GLP

GLP is an index that represent the liquidity of the protocol and let you play against the traders as a sort of bookmaker for example

GLP price depends on the assets's market value used as collateral

As you can see you can buy GLP with these assets

But it also depends on traders performance, indeed while traders loses we win

On the other hand if the traders win we suppose to pay them with our liquidity

But as you may know we have an advantage because the stats says that the majority of the traders lose money

As you can see in this stats dashboard provided by GMX

You can see how the traders have lost almost 10 million dollars in the last months

So back to GLP topic I can say that the price of this token is quite stable

But we're looking at the yield and as you may have notice at the moment there is a 36% APR

PAID IN ETH!

So even if GLP drops a little bit we're covered by this yield

That comes from the fees of the protocol and the losses of the traders

In this case we have higher risk though because we have smart contracts

And the price of GLP can go up and down based on multiple factors

But you may know that an higher yield comes with higher risks

Now that we've seen some yield solution for Ethereum let's talk about when we'll be able to redeem the staked ETH at 1:1 ratio

This will probably happen when the next update will be introduced by the Ethereum Foundation

As you can see this update will be called Shangai

But at the moment the core developers of Ethereum are arguing about what implements in this update

In one hand we have those who want to let people redeem their staked ETH

Because it's almost two years that the beacon chain smart contract were released

In the other hand we have those who want keep the development of Ethereum running to introduce the sharding for example

Or at least begin to develop this improvement because it will help Ethereum scale a lot

In my opinion we'll have the possibility to redeem the staked ETH in the next update

So stay focus on these decisions and we'll see what comes next

Well, I think that this video is over and I hope you have find this content helpful

Friendly reminder, these are not financial adivses!

Last thing, like this video and don't forget to subscribe because we're reaching 1000 subs

That said we'll be in touch at the next video or in the telegram community. Bye!

Outro