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Ethereum – ETH Liquid Staking Overview & Stader Labs ETHx Deep-dive⚡️ High Yield On ETH [Ethereum DeFi] Liquid staking is one of the largest use cases in D5 at the moment and ethereum liquid staking has increased by over 10 billion dollars this year alone this has been because of a strong narrative around liquid staking because of the Shanghai hot fog we saw earlier this year I love these protocols keep Outperforming and keep seeing new inflow of liquidity believe it or not it’s actually quite difficult to outperform ethereum especially staked ethereum most investors are better off simply just buying it staking it versus trying to buy a ton of different all coins and try to outperform the market which in the Average instance doesn’t really end up happening in today’s video I aim to give an overview of the liquid staking landscape for ethereum and further talk about some of the best providers going in depth with a new solution from stator Labs with the eve X token talking about Some of the benefits here and how this product differentiates itself for from some of the other Solutions like rugged pool Lido finance and frax finance as well so we have quite a lot to talk about in today’s video but of course you guys know the drill subscribe if you Want to stay up to date with news and content like this and like the video if you enjoy this type of content and want to support the channel now if we head over to token terminal and we go to the market sectors we can scroll down and press on the liquid Staking sector here and if we look at the max range here since 2021 we can see that this industry this Market sector has been up only this year alone if we press on aggregated here it has gone from around 7.7 billion dollars to an all-time high of over 18 billion dollars Today since the hard Fork where it was made possible to unstake ethereum once again while the risk has decreased significantly and both retail and large institutions have been staking a ton of Eve and I believe this trend will continue for many years to come I don’t Think it will be many years before this is well above 100 million dollars being able to earn a yield of sometimes over five percent on your ethereum coming from sustainable sources coming from the fees being generated on chain is super super valuable and as I said in the Introduction it truly is just one of the best ways to outperform in the market the reason that ethereum liquid staking is so attractive is because ethereum is the hub for a lot of innovation in the space especially D5 and with the recent upgrades such as the switch to proof of Stake also EIP 1559 which included the base feed burn the burn of eth with every transaction the switch of proof of stake now the ability to unstake ethereum as well ethereum has Superior to economics it is deflationary even in more bearish environments and it is at The same time the hub for a lot of innovation in this space therefore it is consensus that eth is a quite valuable acid and being able to earn a yield on top of this is therefore also quite attractive if we look at how this is Divided we can see that also a lot of new entrants have entered recently we now have fracks either swell Network also launched not too long ago rocketpool has also increased you can also see this more directly if we look at the cumulative share so around halfway through 2021 roughly two years Ago over 85 percent of all ethereum that was Liquid sticked was through Lido Finance since then we have seen new products and new competitors emerge and a protocol like rugged pool which launched at the end of 2021 has gone from nothing to a market dominance of around 8 now frax either which also Launched not too long ago roughly October last year has also seen a large inflow of ethereum and now sits at a market dominance of around 2.3 percent if we look at frax either more specifically this is the assets State or the ethereum stake with frax either Since this year alone it has gone from around 100 to over 4 400 million dollars worth of ethereum stick in this protocol so some of these products by rugged pole and frax finance with frax either have seen a large inflow of ethereum that is liquid stick because they offer some Features with their product that are quite unique and quite attractive to users hence there are two different things we need to consider in regards to this first and foremost if I am to stake my ethereum with which protocol should I do so where can I get the most Competitive yield and second if I were to invest in any of these tokens well I need to analyze where there is a large inflow of liquid state ethereum because that is how these Protocols are generating a profit and generating revenue and where will this continue who are constantly innovating building Competitive Solutions and so forth and we can quite quickly conclude that okay frax either they offer one of the highest staking yields because of this dual token mechanism with steak frags either and frax ether and rocketpool offers the these mini pools where you actually only need eight ethereum Instead of 32 in order to have your own ethereum node and by running your own node while you are receiving a slightly higher yield than just liquid staking now that was a quick overview of the landscape my prediction is that we will continue to see new entrance into this Sector here who will also likely take market cap from Lido Finance but despite light of Finance having lost market share the past two years they have themselves also seen a huge inflow in staked eth as you can see from this big green part of the chart here Foreign so now let’s move on to the second part of this video let’s talk about stator labs and a quick disclaimer this video is sponsored by stable apps they are a partner here on the channel and have been so far a long time stator labs are one of the OG players in the Liquid staking landscape they offer a ton of different solutions on different chains on polygon hydera BNP chain Phantom near anterior 2.0 and they are building a new product called ethx which is liquid staking on ethereum they currently have a tvl of just below 100 million dollars and with their new Product the liquid’s taking on ethereum I believe they could see a large inflow of new liquidity and a major rally in their TBL I have previously here on the channel made videos both on liquid staking on polygon I’ve also made it on BNB and covered on the near protocol as Well and stator Labs no doubt knows what they’re doing they have been secured by a ton of different auditing firms and they also have a a lot of Partners they have integrated with a ton of different apps in the D5 space they are backed by large entities such as coinbase Ventures Jump crypto blockchain.com and third capital and so forth and I also integrated in a ton of different exchanges they also have their own native token called the SD token which I’ll touch upon a bit later in the video and to give a quick overview of how liquid staking actually works if we had Two polygon here and we press stick now what I’m able to do is that I’m able to stake my medic tokens here and receive the medic X token in return and how the yield here works on stator Labs is that The Tokens The X tokens these liquid staking derivatives tokens they Appreciate and price relative to the underlying asset so in this instance because the staking yield is 4.7 percent keep in mind that this is variable but let’s say that on average this is 4.7 for a whole year well after that year the price of medic X will be four point Seven four percent higher than the price of medic itself which is also what you can see from the exchange rate here and the benefit of liquid staking which is also why we have seen such a big inflow in ethereum overall liquid staking as I just showed you guys on token terminal Is that not only am I able to earn this yield here from staking from providing my token so that validators can uphold the network confirm transactions create blocks Etc while I am also able to use this token medic X in D5 and stator Labs have integrated Partnerships with a ton Of different D5 protocols with medic X here you can see that you can deposit it into liquidity pools on a bunch of different protocols such as quick swap balancer some of these largest steps in the polygon ecosystem a lot of these pools are without Improvement loss at all which is really really beneficial You are taking on much less risk of course keep in mind that there are smart contract risks but that is the case with all D5 and there are also some pools where can pair up medic x with the SD token for example and there is also lending and borrowing so I’m earning a Staking yield on my medic and at the same time I’m able to supply it into a money market and borrower against it for example this allows for a ton of different strategies and this is essentially what stereolabs are providing with ethx and ethereum liquids taking very soon now I will leave a link To the website down below in the description alongside with these articles where you can read more about ethx how it essentially Works where you deposit eth you’ll receive the EFX token in return and stator Labs then offers quite competitive yields which is realized through the price appreciation Of if x some of the features of if x here is a high stake in reward including which both comes from staking through these validators that are run on stator labs and by also optimizing for these Mev rewards and as mentioned they are also going to leverage their multi-chain Partnership expertise to maximize these roles this is what I just showed you with polygon they have been integrating their liquid staking Solutions with a ton of different apps on the space and I’m excited to see whether or not they’ll actually also be able to do this with liquid sticked eth but I believe This is quite likely scrolling down you can also see there is this rewards calculator the current example is 3.9 and ethx is expected to launch sometime in July so this is actually quite close at this point these are some of the ecosystem partners that I also showed You before Ave which is this large money market balancer and ultimate Market maker PC Finance this yield aggregator and so forth and Eve X has also been audited by two different firms by the name of Sigma Prime and hellborn as well I recommend that you also read some of These blog posts here if you are further interested in evex one of them here is the ethx power pledge So currently there is a lot of I wouldn’t say drama but there is a lot of focus on Lido Finance but because they have such a big part of The liquid sticking landscape so there are some questions whether or not this creates some centralization in the ethereum community the solution that stator Labs has in terms of their own product is that they have pledged to have this self-limiting of 22 of the staked Eve at Max so this is the maximum Amount of liquidity of ethereum that they will allow in their own protocol to essentially ensure that it doesn’t become too centralized in my opinion if they just make sure that there are a lot of different validators on the network and so forth that also helps with decentralization so this is not really Too big of a deal or a concern in regards to Lotto Finance for me but it is good to see that they are focused on the community on the ethereum network and also taking concrete actions here finally one of the big differentiators of Eve X compared to some of these other Ethereum liquid staking Solutions is the ability to spin up an ethereum node with just for ethereum and 0.4 Heath worth of the SD token as we talked about before when looking at token terminal frax either stood out and has gained a lot of value recently large inflow of ethereum Because of their unique solution with two different staking tokens rocket pole has also seen a large growth and inflow recently because of their unique product where you only need 8 ethereum to spin up your own ethereum node stator Labs here have this similar product but with half the amount of ethereum it’s Therefore really really easy and accessible for a lot of users to spin up their own node in a very easy fashion stator Labs will provide the remaining ethereum to make sure that it is these 32 ethereum that are necessary to have a node running and with that not only are Users able to get a very very competitive yield because they are operating their own validator essentially through stator Labs no it will also help make ethereum more decentralized realized as there will be more notes who are upholding the ethereum network this article here really goes into some of the more Technical specifications on how this will work and as mentioned I have linked this down below in the description furthermore theater Labs will also be incentivizing early liquidity into ethx by having this program of 1 million SD tokens that are distributed to ethereum node operators and you can read more About this here as well and I will cover this product more in depth in the future once it has gone live talk about some of the features more specifically go in depth with some different strategies as to how you can optimize your yield talk about some of these thiefer protocols That stator Labs has partnered with and so forth so make sure to stay tuned for that but of course keep in mind that there are risks with all products and smart contract risks are also something that you need to keep in mind of course nothing here is without risk and by Staking your ethereum you are taking on more risk compared to simply just whole it in your wallet for example now with that being said I truly hope you enjoyed this video if you did of course make sure to like the video and subscribe to see more in the future my name is Thor And I’ll see you guys soon take care foreign Foreign Join our community on Twitter! https://twitter.com/ThorHartvigsen Support the channel: Trade on GMX.io and save 10% on fees: https://app.gmx.io/#/trade/?ref=thor If you enjoyed the video and found it useful I would really appreciate if you dropped a like as it helps the video reach more people! Also subscribe to join our crypto community! 🎮Useful Links🎮 Stader labs: https://www.staderlabs.com/ ETHx: https://www.staderlabs.com/eth/ Token Terminal: https://tokenterminal.com/ Check out my previous videos: 🧿Wallet Tracking Guide https://www.youtube.com/watch?v=9IlF1cJQxdo&t=15s 🧿Guide On DeFi Farming https://www.youtube.com/watch?v=C0_XdBmz7c0 🧿Protocols With Large Catalysts In 2023 https://www.youtube.com/watch?v=APx4NAidyxE&t=54s ⚠️DISCLAIMER⚠️: I am NOT a financial advisor and what i said in this video is NOT financial advise.It’s for educational purpose only.Do your own research before investing! in no event will Thor Hartvigsen be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of Thor Hartvigsen’s content on YouTube.Thor Hartvigsen is not a licensed broker/financial planner.All financial decisions made by the viewer should be done after talking with a licensed professional.Everything on the Thor Hartvigsen’s channel is for entertainment only.Thor Hartvigsen’s video content may change over time, or become outdated or invalid.Timestamps 0:00 – ETH Staking Is Taking Over – 1:20 – Liquid Staking Landscape Overview – 3:18 – Analysis Of Top Performers – 5:56 – Stader Labs – 9:20 – ETHx By Stader Labs – Outro Song: (massobeats – taro swirl: https://youtu.be/QutwEFKtvPQ) source.