1 00:00:00,00 --> 00:00:04,200 Hi guys and welcome in this new video! In this new weekly deep dive 2 00:00:04,300 --> 00:00:10,700 We'll talk about the Ethereum staking solutions that are currently available and their yield 3 00:00:10,800 --> 00:00:16,100 And we'll also cover a bonus strategies that offers a higher yield on Ethereum than th staking 4 00:00:16,200 --> 00:00:20,500 Before we begin as usual, I remind you to subscribe to the channel 5 00:00:20,600 --> 00:00:25,400 Because most of the people who watch my videos are not yet subscribed as you can see! 6 00:00:25,500 --> 00:00:27,800 That said it's time to begin! 7 00:00:27,900 --> 00:00:36,200 Opening... 8 00:00:36,300 --> 00:00:41,100 As you probably know the majority of centralized exchanges 9 00:00:41,200 --> 00:00:47,500 Let you partecipate in the staking of Ethereum 2.0 thanks to a liquid staking token 10 00:00:47,600 --> 00:00:59,800 If we look into the OKX's solution you can see that I can convert my ETH into BETH 11 00:00:59,900 --> 00:01:04,700 In order to gain this 4.06% staking yield 12 00:01:04,800 --> 00:01:09,600 And you can find this kind of solution in the majority of cexs 13 00:01:09,700 --> 00:01:14,500 A best practice in this case is not to convert directly ETH to BETH but instead buy it in the spot market 14 00:01:14,600 --> 00:01:24,600 Indeed if we look at the chart BETH/ETH we can see that 1 BETH equals to 0.98 ETH 15 00:01:24,700 --> 00:01:30,900 This happens due to the supply & demand law and reflects the sentiment of the holders 16 00:01:31,000 --> 00:01:37,200 The BETH version is not redeemable at 1:1 ratio at the moment 17 00:01:37,300 --> 00:01:42,100 Indeed if you want to exit from your staking position you have to sell it 18 00:01:42,200 --> 00:01:50,200 The redemption from BETH to ETH at 1:1 ratio will be implemented in the future by the Ethereum Foundation 19 00:01:50,300 --> 00:01:55,100 We'll cover this topic later but I can spoiler that this should happen within 6 months 20 00:01:55,200 --> 00:02:01,300 So, let's make a quick recap, if you are in a cex it's not convenient to convert ETH 21 00:02:01,400 --> 00:02:09,300 If the liquid staking version is worth less than ETH it's better buy it in the spot market 22 00:02:09,400 --> 00:02:17,300 Indeed if you buy BETH in the spot market you'll get a little amount more than the ETH you're using to purchase 23 00:02:17,400 --> 00:02:26,600 Let's make an example, if we have 10 ETH and go to the conversion system we'll get 10 BETH 24 00:02:26,700 --> 00:02:31,500 But if we buy BETH in the spot market with the same amount of ETH we'll get 10.2 BETH 25 00:02:31,600 --> 00:02:41,100 So this is the best practice in order to partecipate in the staking using a cex imho 26 00:02:41,200 --> 00:02:48,900 Friendly reminder, if you're a new user in OKX you can get this mystery box with a maximum value of 10k dollars 27 00:02:49,000 --> 00:02:53,800 So, if you want to subscribe into this cex and get this promotion you'll find the reflink in the description 28 00:02:53,900 --> 00:03:01,600 Speaking of the cex's solutions of Ethereum staking I want to say something about Coinbase's cbETH 29 00:03:01,700 --> 00:03:09,400 Unlike the other exchnages this staking solution is a token erc-20 30 00:03:09,500 --> 00:03:14,300 So we can withdraw cbETH and for example use it in DeFi 31 00:03:14,400 --> 00:03:23,600 Please note that this solution (cbETH) is worthing less than BETH of OKX and Binance for example 32 00:03:23,700 --> 00:03:28,500 Indeed 1 cbETH is equal to 0.96 ETH 33 00:03:28,600 --> 00:03:39,300 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) 34 00:03:39,400 --> 00:03:44,200 After we bought cbETH we're gaining the yield staking as well 35 00:03:44,300 --> 00:03:50,200 And in 6 months we can likely redeem cbETH into ETH at 1:1 ratio 36 00:03:50,300 --> 00:03:57,700 So if you're brave enough this can be a good arbitrage opportunity 37 00:03:57,800 --> 00:04:06,700 Another interesting thing about cbETH is that Coinbase can also incentivizes the Curve's pool cbETH/ETH 38 00:04:06,800 --> 00:04:17,100 And this may lead to have also greater yield for those who will provide liquidity in this pool 39 00:04:17,200 --> 00:04:26,000 A user has commented that Coinbase could buy CRV or buy CVX or gives bribes to incentivizes this pool 40 00:04:26,100 --> 00:04:34,800 And this could be helpful for their solution because they'll increase the adoption of cbETH 41 00:04:34,900 --> 00:04:40,700 But at the moment this is only a speculation and there isn't a real confirmation 42 00:04:40,800 --> 00:04:43,200 Perhaps updates will follow 43 00:04:43,300 --> 00:04:51,900 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 44 00:04:52,000 --> 00:04:57,800 Let's look into the decentralized solutions that can also give us a better yield 45 00:04:57,900 --> 00:05:02,700 And we start deep diving into the most famous solution from Lido Finance 46 00:05:02,800 --> 00:05:12,600 They was the very first to create a decentralized version of liquid staking so they have a great competitive advange 47 00:05:12,700 --> 00:05:17,500 Indeed as you can see the TVL is almost 6 billion dollars 48 00:05:17,600 --> 00:05:20,800 And they have paid out 180 million dollars of rewards 49 00:05:20,900 --> 00:05:31,800 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 50 00:05:31,900 --> 00:05:36,700 And in exchnage we'll get the liquid staking version called stETH 51 00:05:36,800 --> 00:05:43,800 As you can see Lido services is available also for other networks like Solana, Polygon, POlkadot and Kusama 52 00:05:43,900 --> 00:05:48,700 But we'll only cover the Ethereum solution in this video 53 00:05:48,800 --> 00:05:54,500 Also in Lido you can choose to either mint your stETH 54 00:05:54,600 --> 00:06:02,700 Or go to the spot market and buy it but it's almost at 1:1 ratio with ETH 55 00:06:02,800 --> 00:06:08,500 If you remember when Celsius's FUD raised at the end of may / beginning of June 56 00:06:08,600 --> 00:06:20,100 The price of stETH price has dipped at 0.94/0.95 ETH if I remember well 57 00:06:20,200 --> 00:06:25,000 So for those who have bought the stETH dip they're already in profit versus ETH 58 00:06:25,100 --> 00:06:35,300 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 59 00:06:35,400 --> 00:06:41,000 So the next solution we'll lok into is a Lido's competitor called Rocket Pool 60 00:06:41,100 --> 00:06:44,500 That is growing well in the last period 61 00:06:44,600 --> 00:06:51,300 The "numbers" between these competitor are totally different and here we have only 242k staked ETH 62 00:06:51,400 --> 00:06:55,900 While Lido has almost 5 million of staked ETH 63 00:06:56,000 --> 00:07:00,800 But the Rocket Pool version is different and someone may also like more this solution 64 00:07:00,900 --> 00:07:06,500 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 65 00:07:06,600 --> 00:07:12,200 But the main difference between this solution and the previous ones is that rETH 66 00:07:12,300 --> 00:07:14,800 The liquis staking token of Rocket Pool 67 00:07:14,900 --> 00:07:21,500 Is not a rebase token unlike the others so it will not increase its circulation 68 00:07:21,600 --> 00:07:25,100 Is a yield bearing token so it accrue staking yield into his price 69 00:07:25,200 --> 00:07:33,700 So in this case it's not a goog idea to buy rETH at the spot market because its price is higher than ETH 70 00:07:33,800 --> 00:07:38,600 This because it has already accrued the staking yield into his price since it exists 71 00:07:38,700 --> 00:07:43,500 Indeed 1 rETH is euqal to 1.03 ETH 72 00:07:43,600 --> 00:07:50,000 And the best way to get it is to mint directly from Rocket Pool dapp 73 00:07:50,100 --> 00:07:57,400 The operation is also very simple because you have just to input the ETH you want to stake 74 00:07:57,500 --> 00:08:07,500 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 75 00:08:07,600 --> 00:08:11,300 But this amount will not change over time, only the price of rETH will change 76 00:08:11,400 --> 00:08:16,800 Another important difference between Lido and Rocket Pool 77 00:08:16,900 --> 00:08:21,700 Is that the the validators made up by 32 staked ETH 78 00:08:21,800 --> 00:08:28,100 Are assigned to a selected amount of operators direclty choosen by Lido's team 79 00:08:28,200 --> 00:08:34,400 So of course this is a decentralized solution because any user can go with his wallet and mint stETH 80 00:08:34,500 --> 00:08:43,900 But there is some centralization in the node managament made up by our staked ETH 81 00:08:44,000 --> 00:08:48,800 On the other hand the management of the nodes in Rocket Pool has become permissionless 82 00:08:48,900 --> 00:08:55,800 In Rocket Pool we need only 16 ETH instead of 32 ETH in order to setup a node 83 00:08:55,900 --> 00:09:02,000 And we also put some RPL token, the governance token of Rocket Pool, as collateral 84 00:09:02,100 --> 00:09:08,900 In this case the rewards are higher, indeed you can go up to 7.12% staking yield 85 00:09:09,000 --> 00:09:12,900 And also get an extra RPL reward 86 00:09:13,000 --> 00:09:19,000 Now that we have covered the decentralized solution about the Ethereum's liquid staking 87 00:09:19,100 --> 00:09:26,500 I want to deep dive in the bonus strategy that let you earn a greater yield in ETH that the staking 88 00:09:26,600 --> 00:09:33,200 As you can see we're on GMX that is a decentralized perpetual exchange on Arbitrum 89 00:09:33,300 --> 00:09:38,100 In this platfrom we can both trade spot and futures with leverage 90 00:09:38,200 --> 00:09:48,000 And this let use the same features of a cex by using a decentralized solution 91 00:09:48,100 --> 00:09:54,000 For example we can open a trade long or short using different types of order 92 00:09:54,100 --> 00:10:01,200 Like market, limit and trigger, but you can also swap in the spot market 93 00:10:01,300 --> 00:10:08,100 At the moment GMX offers a limit pairs to trade maybe to keep better the liquidity 94 00:10:08,200 --> 00:10:14,000 Speaking about the liquidity let's understand where the yield comes from 95 00:10:14,100 --> 00:10:20,400 Indeed GMX is part of the projects that has the "real yield" factor 96 00:10:20,500 --> 00:10:26,200 This because they not use GMX as an inflationary asseto to pay the liquidity providers 97 00:10:26,300 --> 00:10:36,200 Instead they use the fees generated by the protocols and the losses of the traders to pay the liquidity providers 98 00:10:36,300 --> 00:10:41,100 And they pay out the yield in ETH because we're on Arbitrum 99 00:10:41,200 --> 00:10:48,300 If you want to provide liquidity into GMX you have to buy this token called GLP 100 00:10:48,400 --> 00:11:02,900 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 101 00:11:03,000 --> 00:11:07,800 GLP price depends on the assets's market value used as collateral 102 00:11:07,900 --> 00:11:12,900 As you can see you can buy GLP with these assets 103 00:11:13,000 --> 00:11:20,600 But it also depends on traders performance, indeed while traders loses we win 104 00:11:20,700 --> 00:11:27,000 On the other hand if the traders win we suppose to pay them with our liquidity 105 00:11:27,100 --> 00:11:33,300 But as you may know we have an advantage because the stats says that the majority of the traders lose money 106 00:11:33,400 --> 00:11:38,200 As you can see in this stats dashboard provided by GMX 107 00:11:38,300 --> 00:11:44,000 You can see how the traders have lost almost 10 million dollars in the last months 108 00:11:44,100 --> 00:11:50,100 So back to GLP topic I can say that the price of this token is quite stable 109 00:11:50,200 --> 00:11:59,100 But we're looking at the yield and as you may have notice at the moment there is a 36% APR 110 00:11:59,200 --> 00:12:00,900 PAID IN ETH! 111 00:12:01,000 --> 00:12:07,800 So even if GLP drops a little bit we're covered by this yield 112 00:12:07,900 --> 00:12:14,000 That comes from the fees of the protocol and the losses of the traders 113 00:12:14,100 --> 00:12:19,300 In this case we have higher risk though because we have smart contracts 114 00:12:19,400 --> 00:12:24,200 And the price of GLP can go up and down based on multiple factors 115 00:12:24,300 --> 00:12:30,000 But you may know that an higher yield comes with higher risks 116 00:12:30,100 --> 00:12:41,000 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 117 00:12:41,100 --> 00:12:45,900 This will probably happen when the next update will be introduced by the Ethereum Foundation 118 00:12:46,000 --> 00:12:48,600 As you can see this update will be called Shangai 119 00:12:48,700 --> 00:12:53,500 But at the moment the core developers of Ethereum are arguing about what implements in this update 120 00:12:53,600 --> 00:12:58,400 In one hand we have those who want to let people redeem their staked ETH 121 00:12:58,500 --> 00:13:05,000 Because it's almost two years that the beacon chain smart contract were released 122 00:13:05,100 --> 00:13:11,200 In the other hand we have those who want keep the development of Ethereum running to introduce the sharding for example 123 00:13:11,300 --> 00:13:18,100 Or at least begin to develop this improvement because it will help Ethereum scale a lot 124 00:13:18,200 --> 00:13:24,000 In my opinion we'll have the possibility to redeem the staked ETH in the next update 125 00:13:24,100 --> 00:13:30,000 So stay focus on these decisions and we'll see what comes next 126 00:13:30,100 --> 00:13:34,900 Well, I think that this video is over and I hope you have find this content helpful 127 00:13:35,000 --> 00:13:38,000 Friendly reminder, these are not financial adivses! 128 00:13:38,100 --> 00:13:44,000 Last thing, like this video and don't forget to subscribe because we're reaching 1000 subs 129 00:13:44,100 --> 00:13:49,000 That said we'll be in touch at the next video or in the telegram community. Bye! 130 00:13:49,100 --> 00:13:58,000 Outro