Toros-Enabled Staking with dHEDGE: How to Amplify Your DHT and Earn More
dHEDGE recently launched Staking V2. In Staking V2, by pairing your DHT with Toros vault tokens, DHT investors can employ multiple strategies targeted to their own goals when holding DHT.
Do you want to use DHT for governance? Do you want to amplify returns on stable farming? Do you want to amplify your DHT owned by only holding DHT? Do you want to amplify yield on DHT plus another asset at the same time?
Here are some strategies you can take advantage of using Toros vaults:
- Yield on token pairs without impermanent loss
- Protected leverage on DHT
- Additional yield on stable farming vaults
- Additional yield on DHT liquidity provisioning
- Paired SNX and DHT staking using the SNX debt hedge
Yield on Token Pairs without Impermanent Loss
Want to earn yield on both DHT and another asset? One way to do this is with providing liquidity (LPing) of DHT on a DEX. However, by LPing, you run the risk of losing value instead of gaining it because of impermanent loss.
With DHT paired with ETHy, if ETH goes up in price, you accrue DHT rewards. This means yield on both ETH and DHT. However, no ETH or DHT is sold/rebalanced. So there's no impermanent loss. You can only accrue more DHT rewards and yield from ETHy.
If ETH goes down, you only receive yield on ETH, but not DHT, as staking requires a positive performance to give out DHT emissions.
Protected leverage on DHT
The third strategy includes exposure to DHT only. This means pairing DHT with DHT Vault tokens, a vault that only contains DHT.
If DHT price goes up, you earn more in DHT, like a leverage long. However, if the price goes down, your only exposure is DHT spot, or 1x leverage on the downside.
This strategy is the best if you only want to interact with DHT, and don't want exposure to any other asset.
More Yield on DHT Liquidity Provisioning
The final strategy includes pairing DHT with the DHT Liquidity Yield vault.
Currently, dHEDGE is bribing for emissions on Velodrome. As of writing this, providing liquidity to the DHT/OP pool is yielding 134% APR.
If you want yield on DHT and OP, this last option will be for you.
Amplified Stable Yields
The first strategy includes pairing your DHT with a stablecoin yield vault, such as USDy or USDmny to amplified yield on your USD.
Emissions rely on the performance of the vault. If performance is negative since the time of opening a stake, you won't earn additional DHT.
Though the stable yield returns may be conservative compared to other strategies, staking with USDmny or USDy better guarantees you will be able to collect DHT rewards.
Staking DHT as an SNX Staker
One popular way to use Toros is to hedge against SNX debt using dSNX. As a holder of both DHT and SNX, you have the opportunity to:
- Mint sUSD.
- Deposit sUSD into dSNX to manage your debt.
- Stake dSNX with DHT to potentially earn more DHT if the value of dSNX increases.
By using dSNX, you can minimize your exposure to SNX debt and potentially earn more DHT through staking.
Other Things to Know
Staking acts as a 1 month contract, where rewards actualize after a month, but if you withdraw before 30 days end, you forfeit staking rewards. So keep that in mind before using any given strategy.
For all these strategies, currently, to get the optimal return, put in at least 6x more DHT than the value of your vault tokens. This figure may change in the future however.
About Toros Finance
Toros Finance is a dHEDGE incubated protocol integrating Aave, 1inch, Uniswap, Velodrome, Kwenta and Lyra. Toros Finance aims to simplify access to complex automated strategies, safely, to maximize your returns.
Toros is currently deployed on Polygon and Optimism.