Advanced DeFi Strategies for stETH with Mellow Finance
- Lido is partnering with Mellow Finance - one of two inaugural Lido Alliance members alongside Drop - to provide stETH holders with access to a number of advanced DeFi vaults - including restaking - in collaboration with Symbiotic.
- The vaults are part of Lido's vision to enter the Ethereum restaking space and to provide Ethereum stakers with access to restaking opportunities.
- The DeFi strategies are launched in collaboration with Mellow Finance, a novel restaking primitive enabling permissionless Liquid Restaking Token (LRT) creation based on individual risk profiles and curation models.
- This form of integration boosts the utility and liquidity of staked ETH. Additionally, Ethereum stakers benefit from Lido Alliance requirements including a strong security framework, including thorough testing, comprehensive audits, and continuous monitoring.
Presenting: Advanced DeFi strategies for stakers
Lido contributors are pleased to present a new initiative to provide stETH holders with access to enhanced DeFi strategies. These DeFi strategies are part of Lido's ongoing commitment to supporting Ethereum and LST-aligned projects, bringing more value and possibilities to the staking community together with Mellow Finance.
Explore the new DeFi strategies here: Lido DeFi Strategies.
This development is the first stage of Lido Alliance - a collaborative effort to grow the Ethereum staking ecosystem through partnerships with aligned projects. Lido Alliance aims to bring value to stETH holders through strategic partnerships and by fostering these collaborations, reinforcing the position of stETH as the premier collateral in the market, especially for restaking.
Unlocking New Potential for stETH
In collaboration with Mellow Finance, Symbiotic and a number of strategy curators including Steakhouse, P2P, Re7 Labs, and MEV Capital, these vaults are designed to allow stETH holders to participate in decentralised restaking, offering a unique opportunity to explore more paths in the DeFi and Ethereum restaking ecosystem.
With this launch, stETH holders can:
- Restake stETH: Maximise the utility of your stETH by leveraging it for additional DeFi opportunities.
- Receive Mellow Vault LRTs: Receive LRT rewards from the Mellow vault.
- Receive Staking Rewards: Continue to receive stETH staking rewards.
- Receive Additional Staking Rewards Based on Vault’s Curator Strategy: Benefit from curated strategies that could increase your rewards (coming later).
- Receive Mellow and Symbiotic Points: Accumulate points from Mellow Finance and Symbiotic.
At launch, four vaults will be live for stETH holders to experiment with various DeFi restaking strategies.
- Resteaking Vault - Steakhouse Financial: stETH APR + Symbiotic Points + Mellow Points + Restaking APR
- Restaking Vault - P2P Validator: stETH APR + Symbiotic Points + Mellow Points + Restaking APR
- Restaking Vault - MEV Capital: stETH APR + Symbiotic Points + Mellow Points + Restaking APR
- Restaking Vault - Re7 Labs: stETH APR + Symbiotic Points + Mellow Points + Restaking APR
Restaking with Mellow Finance
The DeFi strategies are launched in collaboration with Mellow Finance, a novel restaking primitive enabling permissionless Liquid Restaking Token (LRT) creation based on individual risk profiles and curation models.
As permissionless LRT middleware, Mellow facilitates the launch of custom LRTs backed by stETH, with Lido integrating descriptions and links to Mellow deposits on its landing page. To ensure sustained liquidity, Mellow will introduce a loyalty program for new stETH LRTs.
Traditional LRT’s often limit users to a single approach, which may not suit everyone’s needs. Protocols like Mellow change this by allowing the creation of customizable LRTs, enabling curators to design strategies that best fit various preferences and goals. This adaptability ensures that users can choose approaches that best meet their individual needs and expectations.
Mellow Finance is one of the inaugural Lido Alliance members. Their initial proposal underwent review by the interim Lido Alliance Workgroup, and was subsequently approved by Lido DAO Snapshot vote.
More Paths, Higher Rewards
Access to advanced DeFi strategies empowers stETH holders to take advantage of additional rewards from DeFi opportunities, particularly through restaking.
This integration boosts the utility and liquidity of stETH, whilst offering a user-friendly and battle-tested experience. Additionally, vaults benefit from a strong security framework, including thorough testing, comprehensive audits, and continuous monitoring. Join in this exciting new chapter and make the most of your stETH with Vaults.
Visit the refreshed Lido site to explore the new DeFi Strategies section and the various possibilities in this new landscape.