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8 arbitrage income methods, only need ETH loan and pledge

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These high-yield tricks involve utilizing interest-bearing ETH tokens.

Original author: Lito Coen

Original compilation: 0x9F, Rhythm BlockBeats

This article is based on the views of CryptoTesters founder Lito Coen on his personal social media platform, which is compiled and translated by BlockBeats as follows:

As we all know, I am bullish on ETH, so I would like to share some ways of earning ETH that I think are safe and highly profitable. These high-yield tricks involve utilizing interest-bearing ETH tokens (like stETH).

Ethereum Maximum Return Index

This is because in the DeFi lending agreement, the ETH The borrowing rate is much lower than the interest obtained by pledge. Ethereum Max Yield Index (ETHMAXY) can do just that.

It consists of stETH, stETH is deposited as collateral, ETH is lent and exchanged for stETH and then deposited - this process is repeated until the leverage ratio of the Token reaches 3 times. Users don’t have to worry about anything, just buy Token, and the leverage will be controlled by Galleon DAO.

Advantages: Easy to use, one-button operation

Cons: 2% liquidity fee, the claimed 10% APR seems wrong, maybe a little lower.

Reward: You can get 10% extra income in GBL and DRINK official Token through ETHMAXY/ETH liquidity mining , but be aware that this may fluctuate due to their respective prices.

Instadapp Smart Contract Wallet

Another way to achieve this leverage is to use Instadapp's smart contract wallet.

It works exactly the same, the only difference is that here you manage your own positions yourself. Instadapp simply allows you to bundle multiple transactions together using Flash loans.

Deposit stETH -> Lend ETH -> Convert to stETH on Curve and deposit... You can use 4 times leverage to achieve 8.7% APR .

Advantage: Higher leverage ratio, no need to pay "managers" liquidity fees.

Cons: High gas costs as this involves many transactions and having an Instadapp smart wallet.

In short:It only makes sense for positions above $100,000.

Argent L2 Wallet

I like to use Argent's L2 wallet, which allows you to use any Token to enter its Yearn vault with the most yield, and get 7% APY. Yearn deploys stETH/ETH liquidity mining on Curve, which automatically converts CRV rewards into ETH.

Advantages: It is very easy to use on the mobile terminal, and you can also use legal currency with the help of Ramp Network.

Disadvantage: As a picky person, I really can't find any major disadvantages here, but it is still inconvenient to withdraw ETH from the L2 account. If you want to withdraw your position, You need to transfer it back to L1, then to CEX and pay some additional fees.

Stakewise

Then there is another staking platform - Stakewise.

I like Stakewise because they are the only platform using a dual-token model that allows you to reinvest your staking rewards (rETH2) into sETH2, compounding your rate of return.

Pledge ETH, then liquid mining on sETH2/ETH, get 9% APR from staking reward + transaction fee + SWISE official Token reward.

As mentioned, you can manually reinvest your rETH2 into more sETH2 and gradually increase your LP position.

Advantages: increase the diversity of pledge pools, good APR

Cons: Setting LP ranges for Uniswap V3 may bother some users, but is actually quite easy.

Hop Protocol

This wouldn't be a real Twitter Thread if I wasn't promoting my own project somewhere, so check out Hop Protocol at Polygon and Gnosis Chain On the ETH pool bar. Here you can earn over 7% APR in GNO and MATIC rewards + transaction fees.

Pros: The best bridge in the world

Disadvantage: None

Editor's Note: The author of this article has an interest in Hop Protocol.

rETH on Curve - wstETH pool

Finally there is an rETH-wstETH pool on Curve, where you can earn Token and CRV double pledge rewards.

rETH is the pledge token of Rocket Pool, and wstETH is the pledge token of Lido.

The easiest and most profitable way to enter is through Yearn.

Waiting for more good options on the L2 so I can market it to people with smaller budgets. Argent is great just for that (on a small budget). Polynomial Protocol's upcoming structured product vault on Optimism is also pretty cool. If you find any good ways to earn ETH on L2, please contact me.

GMX

GMX is actually good too, but you'll be exposed to multiple tokens, not just ETH. GLP is an asset index, technically an LP Token that provides liquidity for all perpetual contract transactions on the platform. This enables a 40% APR by earning 70% of platform revenue + hosted GMX rewards.

DeFi Saver

In addition, another application that I like to manage leveraged positions on Aave, Maker, etc. is DeFi Saver. Like Instdapp, you also have to deploy a smart contract wallet. But it uses the DSProxy standard developed by MakerDAO, which means you can manage it on other UIs.