maybe compounding somehow to high yields?
The most recent integration was Aave, where you can collateralise your stETH and borrow against it, then possibly use those borrowed tokens in other yield bearing ways to essentially leverage. You can also check out some of these guides here: https://help.lido.fi/en/collections/2946727-liquid-staking-on-ethereum.
How does stETH accrue staking rewards when used as colateral in AAVE? I’ve been using the wrapped version wstETH in Maker DAO and was planning to migrate. In DAO the wstETH increases in price but not clear of the mechanism using just stETH in AAVE
The balance will increase since stETH rebases.
Even if deposited in the AAVE platform, correct? I mean the # of Tokens deposited in AAVE increase?
Yes, you’ll still earn rewards.
Got it, thanks. Simpler than the Wrapped version required by Maker DAO
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