Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover a strategy recently tweeted by the team at Silo Finance for an auto-compounding Beefy vault! Previously in Wealth Mastery, we have covered the following protocols:
- Silo Finance – isolated lending markets on Ethereum and Arbitrum
- Pendle – yield tokenization, points speculation, and fixed lending
- Equilibria – yield boosting for Pendle LP rewards
- Beefy – multichain yield optimizer across 27 chains
Combining all this knowledge, let’s explore a new strategy for a Pendle LP comprised of ETH lent on Silo, boosted on Equilibria, and auto-compounding the yield into the LP via Beefy.
Source: Tweet by Silo Finance
Today, let’s get right into the tutorial and cover how I can start earning an estimated 47% APY with this four-part automated yield farming strategy for ETH, on Arbitrum.
How to Earn Up To 47% APY with an ETH Pendle Beefy Vault
Before we get started, please be aware of these risks.
- Smart contract risk in Silo, Pendle, Equilibria, and Beefy
- Front-end spoof attack on any app frontend
- Oracle risks
- An economic design exploit
- Colluding signers on any multisig
- Slashing risk with eETH
- Systemic risk in DeFi
Here’s how I get started!
- First, assuming I have ETH on Arbitrum, I can skip having to use Silo and zap ETH here directly into the Pendle LP for sETH (PT-eETHSilo) expiring June 26, 2024 in about 36 days. I connect my Arbitrum wallet, specify my Input to ETH, click Zero Price Impact, and click Zap In. Following the prompts in my wallet, I’ll end up with the LP token required to deposit into Beefy.
- Then, I hop over to the Beefy app for this vault for ETH (eETHSilo) 27Jun24, connect my Arbitrum wallet, specify the max LP tokens to deposit, and click Deposit.
That’s it! I can now monitor / manage this position in Beefy and after June 27, 2024, I’ll want to reverse these steps in order to get back to my original ETH deposit + yield.
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
