pxETH consistently offers the highest yield among ETH LSTs, and we’re often asked: how is that possible? With pxETH providing 8-9% ETH staking yield compared to the ~3% offered by competitors, it’s a fair question. Let’s break it down.
Two Tokens, More Yield
The key to understanding where pxETH’s yield comes from is understanding its design. Most LSTs make use of a single token. Users deposit ETH, they get an LST back, and start earning yield through that LST. They can then use this LST in other DeFi protocols to earn even more yield, but this design choice is not without its headaches. LSTs with this design often need to be “wrapped” for integrations, are difficult to price, etc.
pxETH takes a different approach and instead relies on two tokens: pxETH and apxETH, but it’s much simpler than it sounds.
pxETH
When users first stake ETH with Dinero, they receive pxETH, a token that maintains a 1:1 peg with ETH. Think of it as a redeemable wrapper for ETH, similar to WETH, except the underlying ETH is staked. However, pxETH does not earn the underlying ETH staking yield. In fact, users of pxETH are choosing to forgo their staking yield in favor of DeFi yields—a preference for many since the upper bound on DeFi yields tend to be much higher.
pxETH’s 1:1 peg makes it easy to integrate across various DEXes, which opens up a variety of yield-earning opportunities for users. In short, pxETH holders are sacrificing their staking yield in exchange for more exclusive ways to earn yield.
apxETH
So where does the staking yield go? That’s where apxETH comes in. Users receive apxETH when they stake their pxETH into the Dinero auto-compounding rewards vault.
Once staked, apxETH holders begin earning the staking yield from the ETH staked with Dinero. Here’s where it gets interesting: not all pxETH holders choose to stake, but apxETH holders earn yield from most of the staked ETH, which boosts their returns.
In other words, apxETH holders earn yield from more ETH than they’ve personally staked. This results in the best ETH staking yield in DeFi—currently 8-9%, far higher than other staking opportunities.
Additionally, apxETH can be used in protocols like Morpho, Contango, Pendle, and more to earn leveraged staking yield or to speculate on future yield.
Get Started
If you’re ready to move on from 3% staking yields, head over to dinero.xyz to get started. There you’ll find everything you need. After depositing, head over to our Markets page to explore the other opportunities available for pxETH users.
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