Users can now extend the utility of their Vesper Lido Staked ETH with Metronome Synth. Deposit vastETH as collateral and dive into more complex strategies.

TLDR:

• Users can now deposit vastETH as a collateral asset on Metronome Synth

• Loop your vastETH positions through Metronome to potentially increase yield

• Lido is an innovative platform that offers liquid staking across multiple chains, with a primary focus on Ethereum

• The stETH token is a Liquid Staking token that enables users to stake on Ethereum 2.0 while simultaneously using their assets on other DeFi protocols

• Vesper is a yield aggregator that puts your assets to work

Overview

Liquid Staking Tokens have been gaining popularity lately, with Lido leading the charge. The integration of vastETH as a collateral asset means users can now deposit their Vesper Lido Staked ETH to generate synthetic assets on Metronome.

To participate, users will need to deposit their stETH into the vastETH Grow Pool on Vesper to earn yield, and then deposit it as a collateral asset on Metronome to generate synths. This enables users to simultaneously earn rewards from their original stETH deposit, yield from Vesper, and as collateral for additional benefits.

Learn how to use the Synth beta here.

Who are Lido and what is stETH?

Lido offers a variety of Liquid Staking protocols across multiple chains, with Ethereum being their primary focus. By depositing ETH into Lido’s protocol, users receive stETH, a Liquid Staking Token (LST) that enables the utilization of assets in the DeFi ecosystem while also earning rewards through the Beacon chain. This feature is incredibly powerful because it enhances the utility of tokens and improves capital efficiency. As a result, participants can earn even more rewards.

To get involved, you must first deposit ETH into Lido and receive your stETH at a 1:1 ratio. The total number of stETH tokens available depends on the amount of ETH deposited and the staking rewards earned, but with potential penalties for validators subtracted. When withdrawals from the Beacon chain become available after the Shanghai upgrade (April 2023), you can redeem your ETH by burning stETH tokens at an equal rate.

The Power of Metronome and Vesper

Combine Metronome and Vesper to increase returns based on your risk appetite. By utilizing Metronome to produce synthetic assets, you can potentially double or even triple your yield through Vesper by using the looping features of Metronome.

The looping process for stETH is as follows:

1. Deposit stETH to vastETH Pool

2. Use vastETH position as collateral on Metronome

3. Generate msETH

4. Deposit msETH to Curve pool and swap for ETH

5. Deposit ETH to Lido Staked ETH pool

6. Repeat

It's important to note that with each loop, you increase the risk of liquidation.

Learn More about Lido

Website | Twitter | Telegram | Github | Blog

Feedback and Updates

Any feedback and suggestions during this testing period are encouraged and greatly appreciated as the team continues to work toward improving the protocol. If you would like to contribute, please join our Discord. Thank you to everyone in the community for your support.

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