[INVESTMENT] What to do with our ETH holding

Kicking off this thread to brainstorm what actions we could take ahead of the highly anticipated Merge of ETH.

First of all I think it would make sense to bridge ETH back to it’s original chain and not keep them as wrapped assets, secondly we could decide whether to stake them (for example I see that stETH is trading at a discount) or to buy some options to speculate on potential price movements

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It is definitely worth bridging ETH back to its original chain following the highly anticipated MERGE. At the moment stETH/ETH is trading at a discount of 0.9709 and therefore there is an arbitrage opportunity seeing as stETH can be redeemed for 1:1 ETH (potential return of 2.95%). However stETH can’t actually be redeemed for ETH immediately. ETH withdrawals won’t be enabled until another upgrade after the merge takes place according to Ethereum.org

Other options:

  • Stake ETH on LIDO (3.9% APR)

  • Deposit stETH and ETH into the Curve Liquidity pool in return for Curve stETH LP tokens that can be staked on Convex for an 8.84% APR

  • Add liquidity to ETH : synthetic ETH LP in return for Curve sETH LP token which can then be staked on Convex for a 4.57% APR

I have seen that many people have been using stETH as collateral to borrow more ETH on AAVE to then stake that ETH on LIDO and repeat the process however there is a risk of liquidation if the peg between stETH and ETH falls.

Time to move the ETH on FTX temporarily while the Merge takes place to minimize risks. FTX has a clear policy for ETH whereas Wormhole has none yet. We can move them on-chain again as soon as Wormhole gives the green flag.

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Agreed, looks like a safe way to manage an otherwise very complex process, especially considering our ETH are bridged IOUs. I suggest we sell the powETH as soon as FTX lists them and when things have calmed down we bridge back the ETH to our Solana treasury

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It appears like the ETH merge has not led to some apocalyptic events - Do you think its safe to bridge back into other tokens?

Yes, we are moving the ETH back onchain soon.

We also disposed of the ETHW as soon as it got listed on FTX at an average price of 26.71$ for 88.74ETHW

For completeness showing also the trades

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