00:00liquid staking versus restaking and yield farming today we'll be going over the risk
00:06adjusted returns of these strategies so let's break them down first right so liquid staking is
00:12pretty much the practice of staking eth to a protocol like lido uh in exchange for a liquid
00:19receipt token which is a staked if there's an example that accrues staking rewards automatically
00:24while remaining tradable and usable as collateral elsewhere right so the yield comes from ethereum's
00:31protocol level staking rewards a function of network issuance and validated participation
00:38not a third party's lending spread or trading activity so current yield sits at approximately
00:43about 3.5 percent annually this is the foundation layer uh yield strategy the lowest risk lowest yield
00:51and the most better tested restaking kind of takes your already staked ethereum and deposits into
00:58eigen layer where it secures additional protocols active like code actively validated services
01:05in exchange for additional yield on top of the base staking reward so you kind of receive this liquid
01:12staking token um such as eeth from etherfy right uh representing your state restaked position
01:20and the combined yield from base staking plus the rewards currently um avs for example runs
01:285.5 to 7 percent the additional yield comes from additional risk comes with that additional risk rather
01:34uh a second layer of smart contracts exposure to whatever the avs is your restate capital is securing
01:43and a slashing risk that did materialize in the kelp dow incident that we saw uh recently and then
01:51pendle fixed yield uses pendle finances a yield splitting mechanism to pretty much lock you
01:57in a guaranteed apy on a yield bearing asset until a fixed maturity date so buying the principal token
02:05on athena's usde currently locks in approximately 9.5 percent fixed yield and the mechanism works by
02:13separating a yield bearing token into a principal component which you buy at a discount a redeemable
02:20at face value uh maturity right and a yield component sold to someone else who wants a leveraged
02:27yield exposure so the fixed nature is the key feature here and uh you know what your exact return
02:34is an entry regardless of what happens to the underlying yield rate afterwards so the risk is
02:41a multi-layered pendles on contracts the underlying ethena's synthetic dollar mechanism itself and the
02:48liquidity of capital locked until maturity and then you know the defy liquidity provisioning means that
02:55you're depositing two assets into an automated make-up pool for example eth or usdc into uniswap v3 to
03:02earn a share of trading fees generated by swaps through that pool yields very enormously here
03:09on pool selection fee tier and price range strategy typically running 8 to 15 percent including any
03:15additional incentive token rewards as well right so when the price ratio between your two deposited
03:20assets changes your position value uh diverges from simply holding two assets separately and that
03:27divergence can exceed the fees and so what i've done is created um a proprietary tool uh which is a
03:35liquid
03:35staking re-staking uh versus pendle versus lp risk adjusted comparison you can get in the link in the
03:43description to our main site so you can check out the full uh article and you'll be able to use
03:48that
03:48sunset here so uh the sun is shining but uh yeah you can kind of play around with it it's
03:54a free tool
03:55and uh you'll be able to kind of actually see uh what's your returns on uh each strategy and which
04:01strategy works best for the capital uh that you want to allocate to these strategies so at the end of
04:08the day guys i think at the end of the day when you look at most yield in defy kind
04:14of make these
04:14comparisons but they don't really kind of uh they make a mistake by just kind of sorting by apy not
04:20investing or ring risk blindness like i said uh this is the way to really kind of look at it
04:27all uh holistically the decentralized news risk adjusted yield tool compares liquid staking
04:34restaking pendle fixed yield and defy liquidity provisioning against your capital and liquidity
04:40needs and also your risk tolerance and then the goal becomes not chasing the biggest number but
04:46actually understanding how you earn the yield and how the yield is earned and the risks and if you
04:51can survive those so check it out links in the description check out the best cryptocurrency
04:56exchanges to use as well in your trading journey and like share subscribe and i'll see you guys in
05:02the next videos peace love y'all
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