Row 50225

Row ID: 50225 | Dataset Entry | Axioma AXP Content Repository

Content Data

This page contains data entry 50225 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

You can buy some ETH, withdraw it to your own wallet maybe to like Arbitrum, OP, or Base chain (eth L2 chains are way cheaper to use)

Then swap 80% of the ETH for wstETH (wrapped staked ETH from Lido protocol, it’s just an index of ETH+staking yield)

Then create a liquidity position at uniswap where you pair the wstETH with ETH. Set the price range of your position tight around the current spot price. No more than 2% above and 0.5% below.

This sort of liquidity position should require about an 80:20 split of wstETH:ETH. This is what you want so that as the index price of wstETH rises thanks to the stake yield, your liquidity is facilitating the swapping of wstETH into ETH.

Over the course of about 3-5 month your entire position should shift 100% into ETH until the price of wstETH is outside the upper limit of your range.

By doing this you will not only earn the staking yield from staked ETH but also the trading fees from traders swapping in and out of staked ETH.

On top of that you will also earn incentives payed by Lido for that liquidity. Those are payed in wstETH and added to the other forms of yield this strategies bears. Currently the incentives are about 26% Apr while the LP pays close to 8% in fees and staking yield is about 4%.

So if your following along this is a way to generate about 32% Apr in ETH on a position that is exclusively exposed to ETH price action.

All you need to do is claim the rewards and when your pool falls out of range, withdraw it and buy more wstETH with the ETH and then remake the pool with a new range. Incentives are distributed by Merkl and just need to be claimed. You can manage such a strategy with as little as one interaction per quarter.

Have fun learning about crypto markets and DeFi

FieldValue
text You can buy some ETH, withdraw it to your own wallet maybe to like Arbitrum, OP, or Base chain (eth L2 chains are way cheaper to use) Then swap 80% of the ETH for wstETH (wrapped staked ETH from Lido protocol, it’s just an index of ETH+staking yield) Then create a liquidity position at uniswap where you pair the wstETH with ETH. Set the price range of your position tight around the current spot price. No more than 2% above and 0.5% below. This sort of liquidity position should require about …
label r/cryptomarkets
dataType comment
communityName r/CryptoMarkets
datetime 2024-05-22
username_encoded Z0FBQUFBQm5Lak1TeGxCQXVKeUVMb0o1SWRBSFFISmh6RHhwa1FrUy1OVFpzVjVpS2tqdnNyWDlCVUlkdDljU1F2bmcwY3M4d2NUaFoybW1mOXVZLWtIbE9PaXY4OG5SNVJBa0JMcTBqN3BaSnBTeVh0TjY4TW89
url_encoded Z0FBQUFBQm5Lak9pVnVTRk5lNnFuN043Rmdvd0Z5WnVvUG9IdzF5T3c2dDI1NlNXWFhGTUpyUUdXOEZlOEJwRnJRUjdWNE5NMVJOYnhzQmI1WTRHaGxVMkltS1dBenY2MUNiWVdKM1NPckE4WEVWMzc3YXFvNUxvM1pqLWxjMUlWRHJaMnM1RDRjdzd4ZUhkQURGSVlKMDVHSmpIcFBqRUJoLXlnOWplQUZ2YVI3RFBaOFdNRHZWaW1QZ1BMN3U3V01hQ282Nk5RZDM2

Raw Record

{
  "text": "You can buy some ETH, withdraw it to your own wallet maybe to like Arbitrum, OP, or Base chain (eth L2 chains are way cheaper to use)\n\nThen swap 80% of the ETH for wstETH (wrapped staked ETH from Lido protocol, it’s just an index of ETH+staking yield)\n\nThen create a liquidity position at uniswap where you pair the wstETH with ETH. Set the price range of your position tight around the current spot price. No more than 2% above and 0.5% below. \n\nThis sort of liquidity position should require about an 80:20 split of wstETH:ETH. This is what you want so that as the index price of wstETH rises thanks to the stake yield, your liquidity is facilitating the swapping of wstETH into ETH. \n\nOver the course of about 3-5 month your entire position should shift 100% into ETH until the price of wstETH is outside the upper limit of your range.  \n\nBy doing this you will not only earn the staking yield from staked ETH but also the trading fees from traders swapping in and out of staked ETH. \n\nOn top of that you will also earn incentives payed by Lido for that liquidity. Those are payed in wstETH and added to the other forms of yield this strategies bears.  Currently the incentives are about 26% Apr while the LP pays close to 8% in fees and staking yield is about 4%. \n\nSo if your following along this is a way to generate about 32% Apr in ETH on a position that is exclusively exposed to ETH price action.\n\nAll you need to do is claim the rewards and when your pool falls out of range, withdraw it and buy more wstETH with the ETH and then remake the pool with  a new range.  Incentives are distributed by Merkl and just need to be claimed. You can manage such a strategy with as little as one interaction per quarter. \n\nHave fun learning about crypto markets and DeFi",
  "label": "r/cryptomarkets",
  "dataType": "comment",
  "communityName": "r/CryptoMarkets",
  "datetime": "2024-05-22",
  "username_encoded": "Z0FBQUFBQm5Lak1TeGxCQXVKeUVMb0o1SWRBSFFISmh6RHhwa1FrUy1OVFpzVjVpS2tqdnNyWDlCVUlkdDljU1F2bmcwY3M4d2NUaFoybW1mOXVZLWtIbE9PaXY4OG5SNVJBa0JMcTBqN3BaSnBTeVh0TjY4TW89",
  "url_encoded": "Z0FBQUFBQm5Lak9pVnVTRk5lNnFuN043Rmdvd0Z5WnVvUG9IdzF5T3c2dDI1NlNXWFhGTUpyUUdXOEZlOEJwRnJRUjdWNE5NMVJOYnhzQmI1WTRHaGxVMkltS1dBenY2MUNiWVdKM1NPckE4WEVWMzc3YXFvNUxvM1pqLWxjMUlWRHJaMnM1RDRjdzd4ZUhkQURGSVlKMDVHSmpIcFBqRUJoLXlnOWplQUZ2YVI3RFBaOFdNRHZWaW1QZ1BMN3U3V01hQ282Nk5RZDM2"
}
Explore Dataset Explore Row

Entry Information