Leveraged Liquid Staking

How leveraged liquid staking strategies can work with LIDO and others.

With Stackfi , you are able to lever up staking as per your risk and debt [borrowed] asset preference to get access to true leveraged staking… But that’s just the tip of the iceberg. Beyond the leveraged ETH, it’s the stETH you receive that enables composability across multiple more DeFi protocols. And each protocol enables you to earn even more APY.

Leveraged Staking Yields in stETH: The stETH is what you receive when you stake ETH via Lido. It ideally maintains a peg against ETH, but market volatility can cause it to lose peg. If that happens, your health factor might drop — especially if your debt asset is a stablecoin. Manage your risk accordingly.

The yield here comes from the rebasing stETH rewards. If those APYs exceed your borrowing costs, this makes the strategy attractive. It’s even better if you're ETH-long relative to stablecoin debt (see Boosted Long/Short strategies).