Combining Lido staking with Aave borrowing is one of DeFi's most popular yield strategies. Stake ETH, deposit stETH as collateral, borrow stablecoins, and compound your returns.
The Lido + Aave strategy is considered one of DeFi's most capital-efficient yield approaches. By staking ETH on Lido to get stETH, then depositing stETH into Aave as collateral, you can borrow stablecoins or other assets while your stETH continues earning daily staking rewards. The borrowed capital can then be deployed for additional yield, creating a stacked return profile.
Stake ETH without the 32 ETH minimum, keep liquidity with stETH, and earn daily compounding rewards from the #1 liquid staking protocol.
stETH deposited into Aave continues to rebase and earn staking rewards — unlike most collateral that just sits idle.
Use your stETH collateral to borrow USDC, DAI, or other assets at Aave's variable rates and deploy for additional yield.
Combine staking APR (~3%) + interest on borrowed capital deployed elsewhere. Careful management can significantly boost total returns.
Borrowing against stETH involves liquidation risk if ETH drops sharply. Maintain a healthy LTV ratio — typically stay below 50% of your collateral value.
Follow these simple steps to get started with Lido Finance.
Lido + Aave is my bread and butter. stETH earning rewards as collateral while borrowed capital earns separately is genuinely clever. Managed properly, one of the best DeFi yields.
Use this strategy but at low LTV (40%). The staking rewards cover borrow costs and the borrowed stables earn in a low-risk vault. Very satisfying net yield.
The stETH-as-Aave-collateral strategy is elegant because the collateral itself is appreciating via rebases. Just be disciplined about LTV — that's the critical variable.
No 32 ETH minimum. No lock-up. Stake any amount and receive stETH that earns daily rewards — the most trusted liquid staking protocol in DeFi.
Cryptocurrency staking involves financial risk. Staking rewards are not guaranteed and can fluctuate. This is an independent guide, not the official Lido Finance website. Always do your own research before staking.