Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover the highest available liquid staking yield for ETH with apxETH at 9.2% APR!
In December 2023, Pirex ETH (pxETH) went live on Ethereum Mainnet, launched by a team now called Dinero, formerly known as Redacted.
Launched in December 2021, Redacted was created to empower on-chain liquidity, governance, and cash flow for DeFi protocols. Their suite of products include the Redacted Protocol, Pirex, and Hidden Hand. The product we will focus on today is Pirex, for creating liquid wrappers for auto-compounding and tokenization of future yield/vote events.
Similar to frxETH vs sfrxETH by Frax, pxETH is a two-token design for Ethereum liquid staking, consisting of pxETH and apxETH. Instead of the usual one token design like Rocket Pool or Lido, it offers users a choice: mint pxETH to prioritize liquidity and DeFi yields or deposit to apxETH and opt for a simple ETH staking yield.
pxETH is an ETH-pegged asset. It is for those willing to forgo staking yield in exchange for maintaining their liquidity along with other yield-earning opportunities such as liquidity provisions. The Dinero DAO intends to use its reserves and incentives to bootstrap integrations for pxETH farmers.
apxETH is for users looking to maximize their ETH staking yield, currently 9.2% APR. After minting pxETH, users can deposit into Dinero’s auto-compounding rewards vault to enjoy boosted ETH staking yields (apxETH). Because some users choose to not deposit their pxETH to the rewards vault, every apxETH benefits from bonus staking rewards unclaimed by those opting to hold just pxETH. Currently, only 4,600 pxETH (36% of pxETH) is staked as apxETH. That’s how we get a boosted real yield of 9.2% APR!
As of this post, Dinero’s pxETH and apxETH have grown to 12,841 deposited ETH ($42.6M). Pirex ETH is now also multi-chain. Users can bridge their pxETH and apxETH via the Dinero Bridge dapp to Arbitrum, Optimism, BNB Chain, Blast, Mode, and Taiko by way of LayerZero.
In case you recognized their token, the legacy governance token for Redacted was BTRFLY. Now as part of the Redacted rebrand to Dinero, there is a token migration from BTRFLY to DINERO, with a ratio of every 1 BTRFLY to 2000 DINERO and a total supply of 1.3B DINERO.
Today, I’ll show how I can start earning an easy 9.2% APR staking ETH with apxETH. I’ll keep it simple this time because the standalone staking yield is so high but if I ever want to mint pxETH and farm with it in DeFi, I can check out the yields here on Balancer, Aura, Curve, Convex, Pendle, and Velodrome.
How to Stake ETH for 9.2% APR with Dinero’s apxETH
Before we get started, please be aware of these risks.
- Smart contract risk in Dinero Protocol
- Front-end spoof attack on the app frontend
- Slashing risk as with any ETH LST
- An economic design exploit
- Colluding signers on any multisig
- Systemic risk across DeFi
Here’s how I get started!
- First, I go to the Dinero app under pxETH -> Deposit -> Stake here, specify how much ETH or pxETH I have. I can skip acquiring pxETH by just depositing/staking ETH in one step.
- Then, I click Stake, confirm in my wallet, and enjoy my passive yield earnings!
That’s it! I can return anytime to this same app to unstake…
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
