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DeFi Yields Explained

Generating DeFi yields through Leveraged Staking Rewards via AAVE

Vault Strategy: Leveraged Staked ETH Strategy

Instadapp Lite utilizes the staking rewards of ETH to amplify Ethereum interest. We can also apply the yield of ETH staking rewards by using the same strategy on other assets bringing a reliable and consistent yield to WBTC, USDC, and DAI.

ETH Vault: Amplifying Interest Rates

Instadapp Lite utilizes the AAVE protocol and stETH or Lido Staked ETH (stETH). stETH is a tokenized staking deposit on Ethereum that earns staking rewards daily. stETH can be used as collateral on AAVE and borrowed against ETH recursively to gain increased exposure to staking rewards. By doing this we can increase our exposure to staking rewards by up to 3x

Non-ETH Vaults: Exporting Yield to other Assets

We can execute a similar strategy to the ETH Vault shown above, except in this vault we use the collateral value of the deposited asset to borrow recursively stETH, this allows us to offer a nice stable yield based on POS rewards to other assets!

Long Term Steady Yields

Ethereum’s proof of stake rewards will be generated in perpetuity! Unlike other DeFi yields that require emissions of DAO tokens, or secondary incentives, staking rewards are a consistent and reliable source of yield, arguably the best DeFi yield on the market! This makes Instadapp Lite ideal for both short and long term holding.