Try Quests to earn cryptostETH is actually a LP token that represents the amount of ETH that you stacked in ETH 2.0. Each stETH Tokens is equivalent to an ETH Token and has a ratio of 1 to 1 with ETH. Because stETH has a much lower supply than ETH, its price changes are greater than ETH, and and in fact often do not have the same price as ETH.
This article tries to examine the use cases of stETH tokens and their uses in different parts of Ethereum Defi ecosystem.
StETH token use cases are divided into 4 sections:
1.Liquidity Pools:
like Curve , Uniswap and sushiswap
Liquidity Pools are available on suhsiswap is wstETH/DAI and on Uniswap is stETH/ETH pool, also on curve stETH/ETH pool are available right now.
(Lido's wrapped stETH (wstETH) is stETH which is deposited into the stETH wrapper to create a new token called wstETH)
2.Lending :
Maker , Compound , Aave , Cream and Alpha finance are platforms supports stETH lending.
you can deposit your stETH as Collateral to this Platform for borrowing.
3.Strategies/Aggregators:
Aggregators Like Yearn, Harvest, Badger can use stETH tokens in the in their yield farming strategies.
4.This part of stETH uses is still in the testing phase and is not supported by any particular platform.
According to Lido finance, in the future, users can use stETH as collateral to mint synth assets.
First of all Lets Take a look at stETH stats then go for use cases.
number of unique Holders : 72,648
supply : 4,350,118
stETH price : $1,758
Marketcap : $7,650,709,785
Since stETH stacking in curve gives stackers more options, most users are inclined to use this platform.
With the stETH stack, you can receive CRV and LDO tokens as a reward.
Also with the stETH stack you will receive crvstETH LP token which you can use in Aggregators platforms for yield farming.
you can use this LP token on Curve directly or deposit it to other platform like Yearn, Harvest, Badger.
so how much stETH staked on curve stETH/ETH pool. chart below shows daily amount of stETH staked over time.
Chart below Shows total swap volume over time.
you can directly Deposit your stETH Tokens to Aave platform as collateral and borrow.
you have to wrap your stETH tokens to wstETH and deposit wstETH tokens to Maker platform as collateral also.
Chart below shows amount of stETH deposited to Aave platform as collateral.
Most of stETH use cases are related to Curve finance stETH/ETH pool.
Users Staked their stETH on Curve liquidity pools and earn rewards also , users are able to deposit their LP tokens (crv-stETH) to aggregator Platforms like yearn to earn more interest on yield farming.
Other use cases of stETH tokens is that you can wrap this tokens to wstETH tokens and deposit this tokens to Maker as collateral and Borrow DAI.