Lido is a liquid staking solution for PoS (proof of stake) cryptocurrencies that allows users to access staking rewards without locking their assets.
Through Lido users can mint STETH (staked Ethereum) 1:1 from their ETH. STETH tokens represent the ETH staked in Lido + the accrued staking rewards - platform penalties. Users can burn STETH to redeem initial ETH deposit + staking rewards - penalties.
STETH can be used to maintain collateral while staking by being deployed across the DeFi ecosystem in places like Uniswap, Sushiswap and Curve to boost rewards¹ and provide liquidity to pools.
Read official documentation to learn more about Lido STETH tokenomics.
Learn more: What Is Lido?, Binance Academy
Ethereum, Solana, Polygon, Polkadot, Kusama
Governance Token: LDO
Curve Finance is a high TVL, low slippage AMM with a focus on stablecoin pairings.
Liquidity providers earn a small percentage of fees as a liquidity reward each time a Curve pool is used to exchange tokens, this is Curve vAPY² and can be viewed on the dashboard.
Curve liquidity providers earn additional APY³ by staking LP tokens in Curve farming gauges; farming gauges reward users with governance token CRV in an inflationary token model. The weight of CRV inflation per pool is determined by a DAO voting system for gauge weights.
An example of how Lido & Curve can work together to boost rewards:
ETH can be staked on Lido for STETH to earn Lido staking rewards, STETH can be provided to the ETH/STETH LP on Curve to earn additional liquidity rewards, and then deposited in the Curve Farming gauge to earn CRV.
Ethereum, Arbitrum, Avalanche
Governance Token: CRV
Learn more: What is Curve finance in DeFi?, Binance Academy
¹Boosted Rewards take advantage of multiple liquidity pool rewards and staking incentives to provide a higher yield.
³APY (Annual Percentage Yield) is interest earned over one year compounded, APR (Annual Percentage Return) is interest earned over one year statically. Learn more: APY vs APR, Binance Academy
²vAPY (Variable Annual Percentage Yield) is interest earned over one year compounded, with a variable return based on pool trading activity.
Convex is a high TVL yield aggregator⁴ that compounds and boosts rewards⁵ for Curve and Frax liquidity providers. Provide liquidity to Curve pools and stake Curve LP tokens in Convex for boosted rewards.
An example of how Lido, Curve & Convex can work together to boost rewards:
ETH can be staked on Lido for STETH to earn Lido staking rewards, STETH can be provided to the ETH/STETH LP on Curve, and then the ETH/STETH LP tokens can be staked on Convex for CRV and LDO rewards.
Convex pools offer varying token incentives depending on which LP you are staking, it's important to keep in mind which rewards you are receiving. Check to see token rewards for individual LPs on the stake page by clicking for more information on the vAPR⁶.
Governance Token: CVX
GMX is a decentralized perpetual exchange⁷, offering liquidity provision rewards for providing liquidity in form of their GLP token, an index pool made up of WBTC, ETH and stablecoins. The GLP pool provides liquidity for leverage traders utilizing the perpetual exchange.
GLP composition fluctuates and differs across networks. Read documentation of the GLP pool to understand fluctuation and check overview pages to see the current composition of GLP.
GLP holders receive 70% of platform fees in return for liquidity provision. On Arbitrum these rewards are distributed in ETH, on Avalanche, in AVAX; You can not bridge GLP across networks. The token will automatically begin accruing fees on the platform. You do not need to stake or unstake the GLP, rewards can be claimed on the "Earn" page.
Governance Token: GMX
⁴Yield Aggregators optimize yield by combining the strategy of multiple protocols to maximize interest.
⁶vAPR (Variable Annual Percentage Rate) is interest earned over one year statically, with a variable return based on pool trading activity.
⁷Perpetual Exchange is a trading platform that utilizes unending futures contracts, meaning there is no expiry on your position. Perpetual futures allow for high leverage trades.
Stargate is an interoperable omnichain bridge from LayerZero Labs, offering single sided asset yield for ETH and stablecoins across 7 chains. Avoid IL single asset farming bluechips and stablecoin pools.
Stargate is integrated with LayerZero⁸, for fast withdrawals from pools across networks. Stake assets on any available network and 1 click withdraw on any other. For example, If you deposit USDC on Arbitrum, you can withdraw from the pool, sending the USDC to Ethereum.
Arbitrum, Avalanche, BSC, Ethereum, Fantom, Optimism, Polygon - Governance Token: STG
DeFi is subject to risk, including risk related to smart contracts. Please practice due diligence. All 3rd party sites are provided for convenience only, if you choose to access any such site, you do so at your own risk.
Balancer is a high TVL AMM that utilizes several types of liquidity pools, including dual asset⁹, multi asset¹⁰ and weighted pools¹¹, to reduce exposure to impermanent loss when providing liquidity.
Swap, provide liquidity and farm with a variety of asset pools across Ethereum, Arbitrum and Polygon on Balancer.
Use Balancer Tools Impermanent Loss Calculator to calculate IL on your pools.
Ethereum, Arbitrum, Polygon
Governance Token: BAL
Learn more: What is Balancer?, Coinmarketcap Alexandria
⁸LayerZero is an omnichain interoperability protocol that enables messages to be sent between blockchains.
⁹Dual Asset Pools are made up of two assets typically with a 50/50 split like AAVE/ETH.
⁹Multi Asset Pools are made up of multiple assets typically with an even split like ETH/WBTC/USDT.
¹¹Weighted Pools have weighted ratios to mitigate impermanent loss like 20% WETH/ 80% WBTC. Learn more: Weighted Pools - Balancer, Balancer Docs
These resources are intended for general guidance and educational purposes only. I am not an investment or financial advisor, and make no representation regarding the advisability of investing.
For convenience only, this website may provide links or pointers to third party sites. While all information is provided in good faith, I make no representations about any other websites that may be accessed from this website. If you choose to access any such sites, you do so at your own risk.
Decentralized Finance is subject to significant risk, including risk related to smart contracts.