The Ethereum Upgrade or “Merge” is on the horizon, eliminating the need for energy-intensive mining and instead will secure the network using staked ETH. There’s a surplus of coverage surrounding one of the most significant upgrades in the history of Ethereum. So a quick refresh is sufficient.

Staking Post Merge

While faster transaction speeds and lower energy consumptions are benefits of the awaited Merge, staking is one of the most anticipated features of the upgraded Ethereum network.

Current requirements to stake are pretty steep at 32 ETH. However, there are several projects, such as Rocket Pool and Lido Finance, that are creating solutions for users with fewer ETH to be able to participate.

The ETH 2.0 upgrade was targeted to occur in June with community projections of 12% to 15% APYs for staking post Merge. The date has since changed, with metrics pointing to slightly lower staking yields once the Merge takes place.

11.5 million ETH, or 9.5% of Ether’s circulating supply, is lock within the staking contract. While the growth of the amount of ETH staked makes the network more secure, it also means that the rewards received for protecting the network decrease proportionally.

Factors affecting staking APYs post Merge

• Amount of ETH staked
• Ethereum fees
• Percentage of fees burnt

Wrapping stETH creates a DeFi-compatible version of the stETH token, which allows for easier integrations with DeFi protocols, including Balancer. Through Balancer, users can provide wstETH as liquidity to the respective Pool to earn trading fees and additional incentives.

For context, Lido is the largest liquid staking protocol. By allowing traders and LPs to tap into Lido’s $6.32 Billion TVL. Balancer is a top destination for liquid-staked ETH liquidity, facilitating between Ether and Staked Ether to offer liquidity for stakers securing the Ethereum Network.

Recently, Lido joined the L2 ’22 Summer by launching stETH on Layer 2 networks Optimism and Arbitrum. Users can stake ETH with lower fees and use stETH assets across DeFi.

Balancer’s technology is deployed across L2s, including Arbitrum and Optimism, further strengthening its offerings for liquid-staked ETH liquidity and is equipped to support Lido’s launch of wstETH on Layer 2’s.

How exactly can Balancer users earn further yields on staked ETH?

Through MetaStable Pools

MetaStable Pools are great for tokens with highly correlated, but not hard-pegged, prices. Because of this, MetaStable Pools are especially well suited to handle pegged tokens that gradually accumulate fees.

Rate Providers

Wrapping rebasing tokens, such as stETH, makes them compatible with Balancer, but knowing the exchange rate between the underlying rebasing token and the wrapped token is necessary to facilitate Stableswap trades. Rate Providers are contracts that provide an exchange rate between two assets. These exchange rates can come from any on-chain source. For a Direct Balance Query like stETH, the wstETH rateProvider has a getRate() function that calls wstETH’s own stEthPerToken() function.

What differentiates Balancer from other DEXs are rate providers, which update the price of wstETH as it earns staking yield. By using rate providers, through MetaStable Pools, both Lido and RocketPool LPs can collect that yield instead of arbitragers.

Balancer wstETH/ WETH Pool

The wstETH/WETH Pool, with Lido Finance, allows users to stake their ETH — without locking assets or maintaining their own infrastructure. The wstETH/WETH Pool solves problems associated with initial ETH 2.0 staking: illiquidity, immovability, and accessibility. By making staked ETH liquid, users can stake ETH with any amount.

The wstETH/wETH Stable Pool TVL remained the largest at the end of the quarter, with over $200 Million in TVL.

Balancer’s rETH/WETH Stable Pool

ETH staking protocol, RocketPool lowers both the capital and hardware requirements for staking on ETH 2.0. Balancer’s rETH/WETH Stable Pool TVL has grown considerably in the past few months. Mere speculation, this growth could be attributed to the pending September Merge date to PoS.

Currently, Balancer holds the most rETH liquidity over other major DEXs.

Protocol Fees

Balancer applies the Protocol fee, which currently sits around 50%, to the staking yield making Balancer the optimal destination for liquid-staked ETH. A large part of Balancer’s revenue is directly ties to the fees earned on ETH staking yields.

ABOUT Balancer

Balancer Protocol allows for automated portfolio management, turning the concept of an index fund on its head. Instead of paying fees to portfolio managers, you collect fees from traders who rebalance your portfolio by following arbitrage opportunities.

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RESOURCES

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This has been long overdue, as liquidity providers on Curve had previously no avenue to trade their earned LDO rewards. This partnership trifecta made up of the largest protocols on Moonbeam would allow users to trade LDO as well as auto-compound their LDO liquidity.

The LDO farm will be live on StellaSwap on 22 Aug, 14:00 UTC.

State of LDO on Moonbeam

At the start of June, Lido finance announced the launch of their stDOT-DOT farm on Moonbeam via Curve. Liquidity providers who staked in their pool would earn LDO, the native token of Lido.

Since then, users who’ve earned LDO rewards couldn’t really trade or do anything since an LDO farm didn’t exist.

Here’s a breakdown of LDO on Moonbeam

• Current LDO Supply on Moonbeam: 314,455 LDO (~$600k)
• No. of LDO Holders on Moonbeam: 585 Addresses

The absence of an LDO farm meant that LDO holders on Moonbeam are forced to bridge their LDO token away from Moonbeam or just hold on to it without doing anything.

StellaSwap has been closely working with Beefy and Lido to facilitate LDO trading on Moonbeam. As the largest DEX on Moonbeam, StellaSwap is proud to be able to work with them in actualizing a highly-awaited farm.

The scope of this trilateral partnership manifests in the following way

1. LDO farm launch on StellaSwap
2. Launch of automated LDO farm (StellaSwap LP) on Beefy

Launch of LDO Farm on StellaSwap

StellaSwap will launch a standard LDO farm, with Lido and Beefy providing initial liquidity of $10,000 into the farm. Additionally, Lido will provide an initial $5,000 worth of LDO incentives to attract users to stake into the farm.

Here are the details of the farm:

• Farm Launch: LDO— GLMR
• Farm Type: Dual-Rewards
• Reward Token: STELLA + LDO
• Launch Date: 22 August| 14:00 UTC

Auto-Compounding LDO Farm on Beefy

Shortly after the LDO farm on StellaSwap, Beefy will launch the LDO farm to allow users to auto-compound their rewards into their LP. Beefy will launch the LDO farm using StellaSwap’s LDO LP. Instead of manually compounding their rewards, Beefy provides an automated way for users to optimize their returns.

ABOUT StellaSwap

StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the DeFi world. Users can swap, earn, yield farm, bridge assets, explore new projects, and engage in NFT trading all from a single unified platform. StellaSwap’s products are structured in such a way that facilitates decentralized governance of STELLA holders while continuing to innovate on the collective foundations by design.

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ABOUT LIDO Finance

Lido is a liquid staking solution for ETH backed by industry-leading staking providers. Lido lets users stake their ETH – without locking assets or maintaining infrastructure – whilst participating in on-chain activities, e.g. lending.

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RESOURCES

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The post StellaSwap Collaborates With LIDO appeared first on Smart Liquidity Research.

Partnership HighLights

This partnership of Hubble and Lido Finance took the first significant steps toward boosting stSOL liquidity throughout Solana with USDH.

Lido is one of the biggest protocols in DeFi as measured by total value locked (TVL). They’re doing great work to bring liquidity and composability to staking across multiple blockchains, and its users will benefit from the addition of stSOL to Hubble.

Learn More About Lido Finance and stSOL Liquid Staking Tokens

To begin with, Lido has helped over 110,000 users stake billions of dollars ($14.7B at the time of writing) worth of tokens on multiple blockchains, most notably Ethereum. Their liquid staking token on Ethereum, stETH, has helped users stake over $9 billion worth of ETH.

Furthermore, Lido has staked over 3,000,000 SOL in exchange for stSOL, a liquid token that earns a staking yield that can be used across Solana DeFi while staked with a Solana validator.

Each stSOL that users receive represents one SOL staked to help protect the network and facilitate transactions. The Lido DAO has selected a group of 14 leading validators to help diversify staking across the Solana ecosystem. Additionally, they plan to expand this into the future, with more onboarded who meet high availability and performance criteria.

Hubble is Excited to Bolster stSOL Liquidity with USDH

Over the next two weeks, they will be kicking off the first phase of Hubble’s partnership with Lido. They planned to launch two liquidity pools and excellent yield farming opportunities for their users.

Users will be able to deposit liquidity and earn rewards when stSOL-USDH pairs go live on Raydium this Thursday, May 12th. They include another rockstar Solana decentralized exchange (DEX), Orca, in their plans to help support stSOL and USDH liquidity on the network, and users will also be able to deposit concentrated liquidity through Orca’s Whirlpool from May 19th.

Both of these pools will be offering liquidity providers (LPs) incentives in LDO and HBB, each project’s native token. So, get ready to enjoy some juicy yield for participating in the stSOL-USDH pools on your favorite Solana DEX!

About Hubble

Hubble protocol allows users to take interest-free loans against multiple crypto assets. Hubble works with USDH, Hubble’s decentralized stablecoin. So borrowing USDH, with 0% interest, gives users the chance to hold their tokens long-term and pursue whatever opportunities arise.

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About Lido Finance

Lido is the leader in liquid staking (when measured by TVL) with a priority on contributing to ecosystem improvement, increasing blockchain decentralization, and making staking beneficial for all the participants on every chain it has launched.

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SOURCE

https://blog.hubbleprotocol.io/hubble-partners-with-lido/

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