DeFi Yields Explained
Generating DeFi yields through Leveraged Staking Rewards
Instadapp Lite utilizes lending protocol and ETH Proof of stake rewards to amplify ETH interest rates. The stETH vault can utilize multiple lending protocol to achieve the best APRs. Currently supported lending protocols for Lite include AAVE, Compound, Morpho and Euler.
Instadapp Lite stETH Vault takes stETH deposits and supplies it to various lending protocols, borrows ETH for more stETH to achieve a leveraged position and increased interest rates. stETH is a tokenized staking deposit on Ethereum that earns staking rewards daily. stETH can be used as collateral on lending protocols and be borrowed recursively to gain increased exposure to staking rewards.
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.