Liquid Staking + 0% Borrowing: The Ultimate ETH Strategy

We're excited to announce that wstETH (wrapped staked ETH) is now available as a collateral option on TheStandard protocol! This integration takes ETH capital efficiency to unprecedented levels by allowing users to simultaneously:

1. Earn ETH staking rewards through Lido
2. Borrow USDs at 0% interest against their staked ETH + Earn additional yield on wstETH through TheStandard (~1.07% APY)
3. Maintain complete control of their assets

What is wstETH?

wstETH is a wrapped version of stETH, Lido's liquid staking token that represents staked ETH on the Ethereum blockchain. When you stake ETH with Lido, you receive stETH in return, which continuously accrues staking rewards. wstETH wraps stETH to provide a non-rebasing, constant-balance representation of your staked position.

Current wstETH staking rewards: ~2.8% APR

Current Total Yield with TheStandard on wstETH ~3.87% APR

The Triple-Yield Strategy

By using wstETH as collateral on TheStandard, users can implement a powerful triple-yield strategy:

Step 1: Stake ETH and Get wstETH

• Stake your ETH with Lido to receive stETH
• Wrap stETH to get wstETH (or swap directly on major DEXs)
• Start earning Ethereum staking rewards (~2.8% APR)

Step 2: Use wstETH as Collateral on TheStandard

• Create a Smart Vault on TheStandard
• Deposit your wstETH as collateral
• Borrow USDs at 0% interest (min. 110% collateral ratio)
• Your wstETH continues earning staking rewards while being used as collateral

Step 3: Deploy Borrowed USDs Strategically

• Provide liquidity in USDs pairs on Uniswap V3
• Stake in stablecoin yield farms
• Use for everyday transactions without selling your ETH
• Or hold as a stablecoin hedge against market volatility

Risk Considerations

When using wstETH as collateral, users should be aware of these risk factors:

• Price Volatility: Despite representing staked ETH, wstETH value can fluctuate with market conditions
• Liquidation Risk: Maintain a healthy collateral ratio (we recommend at least 130%)

Getting Started

To start using wstETH as collateral on TheStandard:

1. Get wstETH: Stake ETH on Lido and wrap to wstETH, or swap ETH for wstETH directly on Uniswap, Balancer, or Curve
2. Create a Smart Vault: Visit app.thestandard.io and connect your wallet
3. Deposit wstETH: Select wstETH as your collateral type and choose your deposit amount
4. Borrow USDs: Mint USDs against your wstETH collateral, maintaining at least 110% collateralization

wstETH Parameters on TheStandard

• Collateral Factor: 90.9% (110% minimum collateral ratio)
• Liquidation Threshold: 105%
• Available on: Arbitrum

Why This Matters

The addition of wstETH as collateral represents a significant enhancement to TheStandard's capital efficiency offerings. Users can now maximize their staked ETH holdings by unlocking liquidity without sacrificing staking rewards or selling their ETH position.

This is another step in our mission to create the most capital-efficient DeFi borrowing protocol—one where your assets continue working for you even while being used as collateral.

Start leveraging your wstETH today at app.thestandard.io!

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