Vesper Launches stETH Yield Aggregator
Vesper’s newest pool–Lido staked ETH (vastETH)–offers holders a ‘HODL better’ yield experience. This is the first rebasing pool on Vesper, where users earn the base stETH rebase + additional stETH from yield earned + a VSP boost on top. The pool is boosted with 500 VSP for the first week and then will receive a recurring boost per the broader VSP emissions framework.
This is a first-of-its-kind stETH yield aggregator product with no risk of impermanent loss.
Lido Protocol enables users to earn ETH 2.0 staking rewards without locking Ether or maintaining staking infrastructure. Lido manages the liquid staking protocol by deciding on key parameters (e.g. setting fees, assigning node operators and oracles) through the voting power of governance token holders. Lido has been audited by Sigma Prime, Quantstamp, and MixBytes.
Lido’s stETH is a liquid token representative of staked ETH. When a user stakes their ETH with Lido, the user will be granted a stETH token. This token rebases once a day to reflect their staking rewards and will be redeemable for ETH once withdrawals on the beacon chain are supported.
How It Works
ETH staked into LIDO earns ETH 2 validator rewards for the holder. Vesper utilizes stETH deposits as collateral on protocols like Aave and Maker for stablecoin loans. Those stablecoins route back through the corresponding Vesper pools where they earn yield through protocols like Curve and Convex.
That stablecoin yield is converted back to more stETH, awarding depositors additional yield on top of the underlying stETH rebase rewards.
Because Vesper always uses the yield earned to buyback more stETH, this integration helps defend the stETH rate and better rewards holders for their participation in the buildout.
For more details on how to interact with stETH, refer to LIDO’s website.
How to Deposit stETH in Vesper
Vesper, a security-first DeFi yield aggregator, now offers additional yield opportunities through their new stETH Grow Pool. Users retain their ETH staking rewards and earn additional yield compounded as more stETH.
Users can interact as follows:
- Go to the Vesper App.
- Navigate to the stETH pool and click in to access the pool page.
- Input the amount of stETH you wish to deposit.
- Click “Approve” and follow your wallet prompt to allow the contract to access the stETH.
- Click “Deposit” and follow your wallet prompt to deposit your stETH into the pool.
On deposit, you receive a Vesper pool token to represent your share of pool deposits. For the stETH pool, this token is vastETH.
Your number of vastETH will be the same until you withdraw or deposit more. The stETH value of each vastETH token continues to increase, so users who hold vastETH retain their stETH staking rewards plus the additional yield earned by the pool.
To realize your earnings (including additional VSP and/or LIDO boost):
- On the pool page, click claim and follow your wallet prompt to access additional token rewards
- Click withdraw and follow your wallet prompt to pull out all or some of your deposit at your convenience — principle + yield included. You can withdraw your funds at any time!