What Kind of ETH Shanghai Investor Are You?
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After a successful implementation of the Merge in September 2022 that saw Ethereum complete its shift to a proof of stake blockchain, the next major milestone is the Ethereum Shanghai Upgrade, officially known as Shapella, enabling investors to finally unstake their ETH tokens from Ethereum’s Beacon Chain after a lock-up period of over two years.
While the upgrade could be bullish for Ethereum, since you can now stake your tokens without worrying about liquidity, locking your tokens on the platform will still be expensive, since you’ll need 32 ETH to secure the network.
As such, liquid staking tokens such as stETH and other liquid staking derivatives still prove a viable option for investors looking to explore numerous DeFi opportunities, while simultaneously receiving rewards for staking Ethereum.
Are you looking to reap big from the Ethereum Shanghai Upgrade? Bybit provides various ways to invest in stETH and other liquid staking derivatives. Whether you’re a CEX Purist, a DeFi Believer or an LSD Opportunist, Bybit is the perfect platform to help you maximize profits.
In this write-up, we’ll explore these three types of investors and learn how you can leverage various options on Bybit to profit from the Ethereum Shanghai Upgrade.
Key Takeaways:
stETH’s staking data is fully transparent and offers opportunities to earn both on Bybit and on DeFi protocols.
Bybit offers various products suitable for the three types of ETH Shanghai investors: CEX Purist, DeFi Believer and LSD Opportunist.
Type 1: The CEX Purist (Stake on Bybit Earn)
Are you looking to invest in ETH and stETH directly on a centralized exchange (CEX)? Then you’re a CEX Purist, and Bybit Earn offers the most flexible way to stake your tokens.
Tips to Maximize Your stETH Profits
Earn High APR in the Most Transparent Way
By staking your ETH with Bybit Earn, you get to earn a high APR of up to 6% while also enjoying a secure and reliable experience. All staking data is tracked on-chain, which means greater transparency when compared to other types of staked/wrapped ETH tokens (like cbETH or bETH) that have no on-chain data tracking.
Pro Tip! Do your own research (DYOR) before jumping on a stake that promises a high APR. Based on our testing and research on historical data on Lido and Ethereum from official sources such as ethereum.org, the most common APR is around 4 to 6%, and all official liquid staking derivatives tokens are based on Ethereum’s APR.
Most Opportunities to Earn
Compared to other CEXs, Bybit provides the most liquid way to stake ETH. This is because stETH can be used on many protocols, unlike other liquid staking tokens such as bETH, which can only be used on Binance.
What’s more, you can use your stETH tokens as collateral in Bybit’s Unified Trading Account (UTA)! This product is one of the most innovative — and is the only one in the market that lets you manage all your assets in one account, which helps you manage risk better and improve capital efficiency since you get to hold tokens while earning interest even when trading.
You can also gain from potential arbitrage opportunities on the Bybit Spot market. For instance, when you stake 1 ETH in return for 1 stETH, you can potentially sell your stETH as an stETH/ETH pair on Bybit to earn 1.005 ETH, should the price of the trading pair exceed the 1:1 ratio.
Further, as a whale investor, you won’t incur slippage and transaction fees while minting stETH on Bybit Earn, fees that are typically incurred when you trade stETH or ETH on most other exchanges. The 1:1 minting function eliminates these fees, which could be astronomical for large orders.
Greater Convenience
Bybit allows you to convert your ETH tokens to stETH with just one click. This is more convenient and provides a better user experience (UX) than existing CEXs. For instance, obtaining Coinbase’s cbETH requires users to first stake their ETH and wrap the asset afterward to receive cbETH.
Type 2: The DeFi Believer (Stake on Bybit Web3)
By staking ETH for stETH, you enjoy the most liquidity from ETH and get to trade while earning a passive income from staking, since stETH tokens can be used to earn yield on DeFi platforms such as Curve Finance. If you’re a firm DeFi Believer wanting to engage with ETH directly on Curve and Lido, you can choose to stake on Bybit Web3 with Bybit Wallet. By staking your tokens in a Bybit Wallet, you’ll enjoy more speed and convenience than when using these platforms directly.
Single Currency Staking
With Bybit Web3, you’ll only need to hold a single currency — unlike Curve, where you’ll need to hold both ETH and stETH in order to receive Curve’s LP tokens. Further, you can choose this currency from a diverse range of tokens such as ETH, stETH, USDT, USDC and wBTC.
More Convenient Than DeFi
As a DeFi enthusiast, you’ll find that staking on Bybit Web3 is highly convenient — since you get to stake your tokens in one place to earn a high APR of up to 6.5% (including all LP tokens, and CRV and LDO reward tokens given by Curve).
However, if you stake directly on Lido and Curve, you’ll need to go through an 11-step process to achieve the exact APR (6.5% for Lido + Curve) — whereas on Bybit, it only takes three steps to start earning.
Higher Liquidity
Finally, the liquidity available in the Bybit Wallet is higher than that of DeFi protocols such as Curve. By investing in stETH or ETH via Bybit Wallet, the higher liquidity ensures that you’ll truly be able to collect your earnings at any time.
Type 3: The LSD Opportunist (Trade From Eight LSD Tokens)
Liquid staking derivatives (LSDs) are a perfect way to make the most of Layer 2 projects by capturing opportunities from all ends. If you’re an LSD Opportunist, the Bybit trading platform is ideal for achieving maximum returns. You’ll get to trade eight LSD-related tokens: ETH, stETH, LDO, SD, ANKR, RPL, SSV and FXS.
You’ll also be able to participate in two LSD events designed to celebrate the Ethereum Shanghai Upgrade — and win up to 530,000 USDT in rewards:
Supreme Scorer 2023 event — Running from Apr 4–25, 2023, you can win rewards for guessing the price trend of a USDT Spot trading pair. Predict the price movement of eight trading pairs (ETH/USDT, LDO/USDT, SD/USDT, ANKR/USDT, RPL/USDT, SSV/USDT, FXS/USDT and BIT/USDT) to share in the prize with a bonus pool of up to 80,000 USDT.
Get Started With Supreme Scorer 2023 Now
ETH Shanghai Upgrade Trading Bash — This derivatives competition, with a total prize pool of 450,000 USDT, will run from Apr 4–21, 2023. You can trade any ETH-related derivatives (Perpetuals, Inverse or Futures): LDOUSDT, FXSUSDT, ANKRUSDT, RPLUSDT and SSVUSDT.
Register For ETH Shanghai Upgrade Trading Bash Now
The Bottom Line
The Shapella Upgrade is pivotal to the future of Ethereum’s blockchain, and provides lucrative opportunities for different types of investors. Whether you’re a CEX Purist, a DeFi Believer or an LSD Opportunist, Bybit gives you diverse opportunities to invest and profit from this upgrade. What are you waiting for? Sign up with Bybit today to leverage the numerous opportunities presented by the Ethereum Shanghai Upgrade!
#Bybit #TheCryptoArk
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