Weed Math

Adscendo
2 min readJul 25, 2023

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What steps should we take during a bear market?

Buying ETH at a discount and Getting ETH leveraged staking yield.

Let's do simple weed math.

Weed Math

Let’s assume ETH price=$1800, then you can

  • Buy 1 lstETH, which means using $500 to buy 1 ETH.
  • Buy 1300 aUSD, which means using $1300 to enjoy 1 ETH staking yield.

Weed Math — aUSD

If you are bullish on ETH, you will get a stablecoin with 🔥20.8% APR🔥.

Let’s do a simple math.

Assumption:

The price of stETH rose from $1800 to $3000, the apr of stETH was 4.5%, and half of aUSD is staked.

🧐aUSD Stake APR=(3000*4.5%)/(1300*0.5)=20.8%, 4.62x (20.8%/4.5%)

aUSD: LSD-native stablecoin with leveraged ETH staking yield.

Weed Math lstETH

If you are bullish on ETH, you can enjoy lstETH with 🔥14x leverage🔥.

Let’s do a simple math.

Assumption:

The price of stETH rose from $1400 to $3000.

🧐lstETH APR=1600/100=1600%, 14x (1600%/114%)

lstETH: No funding fees and No forced liquidation, on-chain long-term leveraged ETH

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