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Ethereum Gas Fee Reaches a New Low, How to Use ETH to Earn More Profits?

Bankless

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Don’t leave your ETH idle. These five strategies will teach you how to earn more income

Original title: 《 5 ways to earn more ETH 》

Original author: William M. Peaster, Bankless contributor

Original translation: Nanfeng, Unitimes

ETH is the world's first "triple-point asset": it is a capital asset (staking ETH will provide bond-like returns), a digital commodity (used to pay gas fees) and a non-sovereign value storage asset (similar to Bitcoin), all of which are packaged into a cryptocurrency, ETH.

In addition, most DeFi and NFT activities still take place on the Ethereum network. Therefore, owning some ETH allows you to interact with the largest Dapps (decentralized applications) ecosystem in existence. ETH is one of the main forms of currency in the crypto economy.

ETH is very useful, and more and more people are starting to hold ETH because they think the usefulness of this asset has just begun.

However, many of the current opportunities for income mean that you have to temporarily part with your ETH, or if things go badly, you may lose your ETH permanently.

For example, when joining a new DeFi project's trading pool as its liquidity provider (LP), you are likely to face "impermanent loss" at some point, and if you withdraw liquidity when you encounter impermanent loss, you may lose some ETH.

Or, maybe you bought a new NFT collection at the bottom, but then the bottom price of the NFT project continued to fall over time. This can really happen! Buying high and selling low will cost you ETH!

So if your investment thesis is "long ETH", you want to hoard ETH, and you are interested in putting your ETH to work to earn more ETH, but you want to avoid more complex and high-risk strategies. So where should you go to find this income opportunity?

Check out the top 5 opportunities to earn ETH income using ETH directly with DeFi.

1. Vesper's ETH Grow Pools

Estimated APY: 2.31%

What You Need to Know

Vesper is a platform that provides user-friendly DeFi products, and its first product is called Grow Pools.

Vesper's Grow Pools collect user deposits and then invest these deposits into yield strategies (specifically, investing user deposits into third-party DeFi products, mainly for lending and yield farming of various third-party DeFi projects), and the interest income generated will be used to "buy back more deposit assets in the pool and convert them into passive returns for pool participants." Both conservative and aggressive strategies are available.

The idea is that users can deposit ETH into a Vesper ETH Grow Pool and steadily earn more ETH over time. Depositors receive vTokens (e.g. vETH), and the vETH you hold will track your stake in the Grow Pool, and as buybacks occur, this stake will grow to represent more ETH.

How to join Vesper's ETH Grow Pools?

- Go to app.vesper.finance/eth/pools and connect your wallet.

- Scroll down, select the "conservative" or "aggressive" ETH Grow Pool and click "Deposit". Note: The ETH Grow Pool with an aggressive strategy is a higher 2.31% APY opportunity.

- Enter the amount of ETH you want to deposit and click "Deposit" again.

- Confirm the transaction on your wallet.

- That’s it! You can track your earnings on your Portfolio page and eventually withdraw your ETH via vETH in the Grow Pool dashboard. Note: A portion of your APY will appear in the form of Vesper Protocol’s governance token VSP, which you can claim through the same dashboard.

2. Liquidity Staking (rETH) with Rocket Pool

Estimated APY: 4.3%

What You Need to Know

Rocket Pool is a Deposit-as-a-Service (DSaaS) protocol for Ethereum stakers.

The project allows node operators to stake as little as 16 ETH, while users of its liquidity staking service can stake as little as 0.01 ETH.

Users who choose to stake liquidity will receive Rocket Pool’s liquidity staking Token rETH after depositing ETH. Therefore, rETH represents the user’s staked position, and the value of rETH will grow relative to ETH over time.

How to stake ETH with Rocket Pool?

- Go to stake.rocketpool.net and connect your wallet.

- Enter the amount of ETH you want to stake.

- Click “Stake” to complete the deposit transaction on your wallet.

- Once the deposit transaction is confirmed, you will receive rETH, which is designed to grow in value over time. You can then unwind rETH and convert back to ETH at any time using the double arrow button in the middle of Rocket Pool’s staking UI, as shown above.

3. Stake DAO’s Passive stETH Strategy

Expected APY 6.2%

What You Need to Know

Stake DAO is a non-custodial platform that provides carefully curated DeFi yield strategies.

The platform’s Passive Strategies collect Curve Finance’s LP Tokens (liquidity provider Tokens ) and invest them in other DeFi protocols (such as Convex Finance) to earn automated returns for depositors. This means that if users want to participate in Stake DAO’s strategy, they need to first go to Curve Finance to deposit assets and obtain the corresponding LP Tokens, and then deposit the obtained Curve LP Tokens into Stake DAO.

One of Stake DAO’s more popular strategies is its Passive stETH strategy, which receives LP Tokens from Curve’s stETH pool and earns yield for depositors. (Note: Curve’s stETH pool is an asset pool consisting of two assets with similar prices, ETH and stETH. StETH is the liquidity pledge token obtained by users of the liquidity pledge protocol Lido after staking ETH).

How to participate in Stake DAO’s Passive stETH strategy?

- Go to the Cuirv stETH pool (curve.fi/steth/deposit), connect your wallet, enter the amount of ETH you want to deposit, and get the corresponding steCRV LP Tokens.

- Then go to stakedao.org/dashboard/strategies and connect your wallet.

- Click on the “Passive stETH Strategy” icon on the page and enter the amount of steCRV LP Tokens you want to deposit in the page that pops up.

- Click on Approve the transaction, followed by a final deposit transaction, and you’re done.

- When you’re ready to exit your position, you can use the “Withdraw” button of the strategy to unlock all sdsteCRV Tokens . After that, you will receive steCRV, which you can then use on the Curve platform to withdraw ETH.

4. Jones DAO’s ETH Vault

Estimated APY: 10.6%

What You Need to Know

Jones DAO is a yield and liquidity protocol built on the Arbitrum network, centered around options trading.

The Jones DAO protocol simplifies the process of investing in products on Dopex, an options exchange built on Arbitrum. Jones DAO does this through its Jones Vaults, which are actively managed by the Jones DAO team and are designed to generate yield through options strategies.

These Vaults run on a month-to-month epoch schedule, and deposits and withdrawals are only allowed between epochs. Currently, deposits to Jones DAO's first ETH Vault are closed, but it will reopen on March 25, 2022 (when the current epoch ends).

How to join Jones DAO's ETH Vault?

When deposits are open...

- Transfer ETH to the Arbitrum network by using the "bridge";

- Go to jonesdao.io/vaults/ETH and connect your wallet;

- Enter the amount of ETH you want to deposit;

- Execute the deposit transaction, after which you will receive jETH representing your assets in the vault.

- In between epochs, you can use the vault's "Withdrawal" button to convert your jETH back to ETH.

5. Ribbon’s ETH Covered Call Vault

Estimated APY: 21.7%

What you need to know

Ribbon Finance is a decentralized protocol for creating crypto structured products, such as Theta Vaults that execute automated option selling strategies.

Ribbon’s ETH Covered Call Vault is a weekly automated call option selling strategy that creates ETH call options on the DeFi options protocol Opyn (at which point you will get option Token oTokens), and then sells oTokens to market makers through the decentralized Token auction platform Gnosis Auctions, generating revenue.

“The vault reinvests proceeds into the strategy, effectively increasing depositors’ returns over time,” the Ribbon team explained.

How to join the ETH Covered Call Vault?

- Go to app.ribbon.finance/v2/theta-vault/T-ETH-C and connect your wallet;

- Enter the amount of ETH you want to provide, then click "Preview Deposit", review the key information, and then click "Deposit Now".

- Complete the transaction in your wallet.

- After you deposit, you will receive r-ETH-THETA Tokens , which represent your underlying assets in the vault. When you are ready to close your position, you will use these Tokens to withdraw ETH.

- Read this full strategy on Ribbon Finance: https://newsletter.banklesshq.com/p/how-to-make-money-with-automated?s=w

Summary

ETH is arguably the most useful currency in the cryptoeconomy.

Its prospects look very bright, so if you can maintain direct exposure to ETH while earning more ETH, that would be great.

The ETH income opportunities described above are not risk-free, although their risk-adjusted returns are attractive, especially if you believe that the world will increasingly accept ETH and you want to get as much ETH income as possible!

***This article only represents the original author's views and does not constitute any investment advice or recommendation.