Ethereum

61.5% APY on ETH Restaking? 🤔

Platform: 
Contango 🤝 Ethereum

Contango’s ezETH/wstETH gives 13.8x exposure to $ezETH (6.81% APY) using $wstETH as borrow.

But the buffer before liquidation is just 2.36%.

This isn’t passive income. It’s a high-stakes looping trade. Let’s break the risk 👇

DeFi & Crypto Research | Senior Writer - The Coin Bureau

Even Small Dislocations can Nuke Your Stack 🌋

🧪 ezETH markets are ~75% smaller than wstETH.

💣Thinner liquidity = higher price impact under stress.

⚠️ Spread alone eats ~¼ of your liquidation range

At 13.8x leverage, even a routine unwind in ezETH can push the peg just enough to get liquidated.

If you're in, track the spread. Exit fast if it widens.

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Liquidation If $ezETH Drops 2.36% vs $wstETH 🧨

Factors influencing their price differential:

📏 ezETH/wstETH spread = 0.6% on Uniswap

📌 ezETH's higher yield creates price premium.​

💎wstETH trades deeper, stable market

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