Disclaimer: This article aims to convey more market information and does not constitute any investment advice. The article only represents the author's viewpoint and does not represent the official stance of MarsBit
Disclaimer: This article aims to convey more market information and does not constitute any investment advice. The article only represents the author's viewpoint and does not represent the official stance of MarsBit.
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Source: MarsBit
Note: This article is from @ DefiIgnas Twitter, and MarsBit is organized as follows:
1. Status and Future of Ethereum Pledge:
- Market leader
- Best Yield
- trend
- Future catalysts
And some ideas about financial freedom.
Ethereum's ETH has the best token economy among cryptocurrencies.
If it remains on PoW, ETH worth $4.7 billion will be issued - more than UNI's entire market value of $4 billion.
The supply of ETH has not increased; It is deflationary.
And all of this happened in a bear market!
The pledge rate of 3/ETH is the lowest (14.8%), while offering a competitive~4.5% annual interest rate.
The distribution of tokens in other blockchains is much more concentrated, with insiders, teams, and early investors actively pledging to receive rewards.
This also means that more ETHs can (and will) be locked.
4/Ethereum's young pledged infrastructure partially explains the low ratio.
Lido leads with a 30% pledge rate, followed by centralized exchanges:
- Coinbase-12.5%
- Kraken-6.8%
- Binance-5.4%
For the future of ETH, I hope that pledges will become more decentralized.
5/This is exactly what is happening now.
In the past month, Kraken, Coinbase, and Huobi have lost market share.
In fact, 36% of ETH pledge withdrawals originate from Kraken
6/The pledgor's withdrawal is considered a bearish view of ETH.
Withdrawals are more than deposits, indicating that long-term holders are selling.
In fact, the net inflow since the upgrade in Shanghai has been negative.
Currently, approximately 40% of ETH pledgers have negative ETHPnL.
29% of people are eyeing their ETH at current prices
If I am wrong, please correct me, but in my opinion, it is bullish.
8/ETH pledge is the best opportunity to achieve financial freedom through risk and return adjustments.
My priorities for achieving this goal are (in exact order):
- Protect ETH deposits
- Have a good sleep.
- Maximize the return on ETH
Don't chase the highest yield; Protect ETH principal, prevent hackers and vulnerabilities
9/Protecting principal means using the blue chip DeFi agreement or top CEX
Controversial opinion: If your funds are less than $10000, it is best to use CEX as collateral or not at all.
The online transaction costs of pledging will devour all of your profits.
Image source: @ mrjasonchoi
10/Liquid collateral derivatives are the best way to earn profits overall.
I would choose stETH or rETH because they are adopted in DeFi.
You can lend stETH/rETH, borrow stable currency to pay for daily needs, and let the yield repay your debt.
You may have an average annual return of 4-5%.
Through RocketPool, running your own node can earn an annual interest rate of 7.01% and an RPL reward.
This is great for individuals seeking low-risk node operations, but you need some technical skills.
The risk depends on the pledgor - if a node fails, it will be punished.
12/You can use leveraged collateral, yield aggregators, and farms to drive up yields.
For example, InstadappLite offers an annual interest rate of 8.5%.
It converts ETH into stETH and leverages its leverage with standard ETH to obtain higher PoS pledge rewards.
By the way, I am the Ambassador of Instaapp, so DYOR!
13/ETH pledge with only 83 agreements, about to be overturned by TVL DEX
The LSD industry only accounts for 15% of all ETH pledges, which is larger than lending, bridging, and CDP stablecoins.
It will continue to grow.
14/There are new generation of pledge agreements now, and many more will emerge.
If you enjoy taking risks, you can earn an annual interest rate of over 50%.
My humble suggestion:
By investing in their tokens to pledge their development, rather than risking your best opportunity for financial freedom - ETH capital.
The re pledge of 15/Eigenlayer to increase the security of other networks may be the most hyped protocol.
It will increase the demand for ETH collateral, but the risks will also compound.
16/Distributed Verifier Technology (DVT) is another growing term.
Currently, running an Ethereum node requires 32 ETHs, which is technically cumbersome.
DVT simplifies this by implementing "team pledge", allowing groups to collectively pledge different amounts of ETH
17/DVT should increase decentralization and security, while simplifying collateral.
There are several agreements currently under study regarding this matter:
- @divalabs
- @ObolNetwork
- @ether_ fi
- @stakehouse_ BSN
- @ssv_ network
18/Final idea: Ethereum is the best bet for achieving financial freedom in cryptocurrencies.
Currently, you can obtain a safe 5-9% annual interest rate on ETH, but this is a bear market with low on chain activity.
When a bull market arrives, gas usage will sharply increase.
This will increase the collateral yield and ETH combustion.
19/The higher yield has enhanced the passive income attraction of ETH, driving up prices.
My goal is to protect the principal of ETH, even if it means sacrificing some percentage of returns.
I will bet on LSD/DVT tokens to maximize upside while reducing risk.
What is the best betting token? This is another topic.
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